03 February 2024
Mr A is an individual below 60 He has opted for the old regime He is a non govt employee (presently working with employer 2)
income/amount received details for FY 23-24
salary from employer 1 (govt)-4 lakhs gratuity from employer 1-50000 el encashment from employer 1-50000
salary from employer 2 (non govt)-7 lakhs Reimbursement of hospitalization expenses received from employer 2- 25 lakhs
Deductions available
Standard Deduction 50000 80 C 1.5 Lakhs Joint home loan-total yearly interest for FY 23-24 is 3 lacs Home ownership Share - 60% Mr A and the remaining share pertains to his spouse Joint Loan Share -40% Mr A and the remaining share pertains to his spouse
Based on the above mentioned details what is the Taxable income of Mr A for the FY 23-24 ?
12 July 2024
To calculate the taxable income of Mr. A for the financial year 2023-24 (FY 23-24), we need to compute his total income from various sources and then deduct the eligible deductions under the old tax regime.
Here's the breakdown of Mr. A's income and deductions:
### Deductions Available: - Standard Deduction: Rs. 50,000 - 80C Deductions: Rs. 1,50,000 (assuming this is fully utilized) - Home Loan Interest: Mr. A's share is 40% of Rs. 3,00,000 = Rs. 1,20,000 (assuming the interest is the only deduction under this head)
### Calculation of Taxable Income: 1. **Total Income:** - Income from Employer 1: Rs. 5,00,000 - Income from Employer 2: Rs. 32,00,000 - Total Gross Income: Rs. 37,00,000
2. **Less Deductions:** - Standard Deduction: Rs. 50,000 - 80C Deduction: Rs. 1,50,000 - Home Loan Interest (40% of Rs. 3,00,000): Rs. 1,20,000
### Tax Calculation: Since Mr. A has opted for the old tax regime, the tax liability will be calculated based on the slab rates applicable for FY 23-24 under the old regime. The exact tax liability can be calculated using these slab rates:
- Up to Rs. 2,50,000: Nil - Rs. 2,50,001 to Rs. 5,00,000: 5% of (Taxable Income - Rs. 2,50,000) - Rs. 5,00,001 to Rs. 10,00,000: Rs. 12,500 + 10% of (Taxable Income - Rs. 5,00,000) - Rs. 10,00,001 to Rs. 15,00,000: Rs. 62,500 + 15% of (Taxable Income - Rs. 10,00,000) - Above Rs. 15,00,000: Rs. 1,12,500 + 25% of (Taxable Income - Rs. 15,00,000)
Consulting with a tax advisor or using a tax calculator specific to the FY 23-24 slab rates will give you the exact tax liability based on the taxable income calculated above.
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