advnce tax calculation short sum
This query is : Resolved
09 December 2016
Calculate advnce tax payable by mr A on or before 15th sept 2015 frm the following particulars:-
Rent from house property rs 46000 per month municpl tax paid by him rs 32000
10 December 2016
Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more.
In your case, if assessee has no other income, tax liability would be less than Rs. 10000/-. Then there is no question of advance tax arise.
In your case, if assessee has no other income, tax liability would be less than Rs. 10000/-. Then there is no question of advance tax arise.
14 July 2024
To calculate the advance tax payable by Mr. A on or before 15th September 2015, we need to determine his taxable income from house property based on the rent received and deduct the municipal taxes paid. Here's how we can proceed:
### Calculation Steps:
1. **Annual Rental Income**:
- Monthly rent: Rs. 46,000
- Annual rental income: Rs. 5,52,000
2. **Deduct Municipal Taxes Paid**:
- Municipal tax paid: Rs. 32,000 (for the year)
Net Annual Value of House Property = Annual Rental Income - Municipal Taxes Paid
Net Annual Value = Rs. 5,20,000
3. **Standard Deduction**:
- Standard deduction allowed under Section 24(a) of the Income Tax Act is 30% of the Net Annual Value.
Standard Deduction = 30% of Rs. 5,20,000
Standard Deduction = Rs. 1,56,000
4. **Income from House Property**:
- Income from House Property = Net Annual Value - Standard Deduction
Income from House Property = Rs. 3,64,000
### Advance Tax Calculation:
5. **Tax on Income from House Property**:
- Tax on Income from House Property is calculated as per the applicable tax slab rates.
Assuming Mr. A falls under the individual tax category:
- For Assessment Year 2016-17 (Financial Year 2015-16), the tax slab for individuals is as follows:
- Up to Rs. 2,50,000: Nil
- Rs. 2,50,001 to Rs. 5,00,000: 10% of income exceeding Rs. 2,50,000
- Above Rs. 5,00,000: 20% of income exceeding Rs. 5,00,000
Tax Calculation:
- Tax on Rs. 3,64,000:
- 10% on Rs. 1,14,000
Tax = 10% of Rs. 1,14,000
Tax = Rs. 11,400
6. **Advance Tax Payable**:
- Advance tax is payable in installments throughout the financial year. By 15th September 2015 (Q2 installment), Mr. A should pay 30% of the total advance tax payable.
Assuming total advance tax liability for the year (after considering other incomes, if any) is Rs. 11,400, then:
Advance Tax Payable by 15th September 2015 = 30% of Rs. 11,400
Advance Tax Payable = Rs. 3,420
### Conclusion:
Mr. A should pay Rs. 3,420 as advance tax on or before 15th September 2015, based on the income derived from house property (rent) after deducting municipal taxes paid and considering standard deduction as per Income Tax provisions. This calculation assumes that house property income is the only taxable income for Mr. A. If he has other sources of income, the total advance tax liability may differ, and it's advisable to calculate accordingly or seek assistance from a tax advisor for precise calculations.
### Calculation Steps:
1. **Annual Rental Income**:
- Monthly rent: Rs. 46,000
- Annual rental income: Rs. 5,52,000
2. **Deduct Municipal Taxes Paid**:
- Municipal tax paid: Rs. 32,000 (for the year)
Net Annual Value of House Property = Annual Rental Income - Municipal Taxes Paid
Net Annual Value = Rs. 5,20,000
3. **Standard Deduction**:
- Standard deduction allowed under Section 24(a) of the Income Tax Act is 30% of the Net Annual Value.
Standard Deduction = 30% of Rs. 5,20,000
Standard Deduction = Rs. 1,56,000
4. **Income from House Property**:
- Income from House Property = Net Annual Value - Standard Deduction
Income from House Property = Rs. 3,64,000
### Advance Tax Calculation:
5. **Tax on Income from House Property**:
- Tax on Income from House Property is calculated as per the applicable tax slab rates.
Assuming Mr. A falls under the individual tax category:
- For Assessment Year 2016-17 (Financial Year 2015-16), the tax slab for individuals is as follows:
- Up to Rs. 2,50,000: Nil
- Rs. 2,50,001 to Rs. 5,00,000: 10% of income exceeding Rs. 2,50,000
- Above Rs. 5,00,000: 20% of income exceeding Rs. 5,00,000
Tax Calculation:
- Tax on Rs. 3,64,000:
- 10% on Rs. 1,14,000
Tax = 10% of Rs. 1,14,000
Tax = Rs. 11,400
6. **Advance Tax Payable**:
- Advance tax is payable in installments throughout the financial year. By 15th September 2015 (Q2 installment), Mr. A should pay 30% of the total advance tax payable.
Assuming total advance tax liability for the year (after considering other incomes, if any) is Rs. 11,400, then:
Advance Tax Payable by 15th September 2015 = 30% of Rs. 11,400
Advance Tax Payable = Rs. 3,420
### Conclusion:
Mr. A should pay Rs. 3,420 as advance tax on or before 15th September 2015, based on the income derived from house property (rent) after deducting municipal taxes paid and considering standard deduction as per Income Tax provisions. This calculation assumes that house property income is the only taxable income for Mr. A. If he has other sources of income, the total advance tax liability may differ, and it's advisable to calculate accordingly or seek assistance from a tax advisor for precise calculations.
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