Sec 87a and sec 260aa-revsd

This query is : Resolved

jaseem (Querist)
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26 September 2013 Sirs,

I have some doubt regarding Sec 260AA and Sec 87A.

Please check the following two Income tax calculations and kindly let me know if there is any mistake.

1-Employee does not have PAN number

Total Income 7,46,000.00
Deductions -
Taxable income 7,46,000.00
Tax 79,200.00
Cess @3% 2,376.00
Total income tax - A 81,576.00
20% of Taxable Income - B 1,49,200.00

Applicable income tax A or B which ever
is higher (U/S 260AA) 1,49,200.00

2-Income Tax-Rebate U/S 87 A

Total Income 3,16,000.00
Deductions U/S 80C 1,00,000.00
Taxable Income 2,16,000.00
Tax 1,600.00
Cess 48.00
Total income Tax 1,648.00
Less Rebate U/S 87A 2,000.00

Balance Nil

Please check these, If these two illustrations are correct all my doubts will clear. Please advice.

Regards

JASEEM.A

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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06 October 2013 Both the calculations are correct but in First if No PAN is given then there is no calculation required straight 20% to be deducted but calculation is required where the person is a salaried one as all the details are with the employer and he can calculate the taxable income otherwise no one can calculate any income and therefore he has to deducted @20%