14 March 2008
A salaried employee having Gross salary 132000/-, but after deducting allowance u/s 10 and investment u/s 80 taxable salary remain only 98000/- but also having agri income of Rs.100000. In such a case how to compute taxable income ?
14 March 2008
MR. PUSHPANDRA'S CALCULATION AND THE TROUBLE HE TOOK IS WORTHY OF A COMPLIMENT. I WISH TO ADD A FEW MODIFICATIONS. UNDER SEC. 10 CONVEYANCE I BELIEVE IT IS RS. 800X12= RS. 9600. AGR. INCOME IS ONLY ADDED FOR TAX SLAB PURPOSE.SO IF WE ADD RS. 100000 AS STATED IN THE QUERY, THE APPLICABLE SLAB TO TOTAL INCOME WILL GO UP. THOUGH WE DONT ADD AGR. INCOME AS TAXABLE, THE AGR. INCOME SIMPLY PUSHES UP SLAB OF THE SALRY INCOME AS IT IS ADDED FOR SLAB PURPOSE. AFTER APPLYING THE SLAB AND COMPUTE TAX ON TOTAL INCOME, WE DEDUCT TAX APPLICABLE TO AGR. INCOME OF RS. ONE LAKH. THE NET TAX PAYABLE IS BALANCING FIGURE. TO THAT EXTENT , THE CALCULATION OF TAX WILL UNDERGO CHANGE. R.V.RAO
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