Calculation of income tax for ay 2018-2019

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For a  resident individual salaried person with net taxable income say Rs. 732000.00 (after all deductions), should one calculate tax liability this way (income is only from salary):

(Net taxable income: Rs732000=Rs250000+Rs482000)

for income upto Rs250000: Income tax to be paid: Rs. 0

for income from next Rs 250001 upto Rs500000: Income tax to be paid: @ 5%: Rs. 482000*5%=Rs24100

Add: Cess @ 3% on tax: Rs24100*3%=Rs723

Net tax liability: Rs 24100+Rs723=Rs24823

Rounded off: Rs 24820

Please indicate if the calculation is correct or not. If not, what should be the correct amount.

 

 

 

Replies (6)
(Net taxable income: Rs732000=Rs250000+Rs482000)

for income upto Rs250000: Income tax to be paid: Rs. 0

for income from next Rs 250001 upto Rs500000: Income tax to be paid: @ 5%: Rs. 250000*5%=Rs. 12,500/-
Tax on balance Rs. 2,32,000/- @ 20%=Rs. 46,400/-
Total tax (12500+46400=58900/-)
Add: Cess @ 3% on tax: Rs. 58,900*3%=Rs1767/-

Net tax liability: Rs

No the above calculation is wrong. Correct calculation is given below

Upto 250000 - NIL

250000 to 500000 - 250000*5% =12500

Rest - (732000-500000)*20% = 46400

Total tax = (12500+46400) = 58900

Add:  Cess @ 3% =        1767

Total tax payable = 60670 (rounded off)

Also dont forget to add the interest u/s 234A, 234B and 234C if any.

Yes the interest also comes in 3 steps if TDS not deducted by employer in period wise.
Yes... I agreed to Mr G Vijaya Kumar.,


Mr. AP.,

Your tax liability Rs. 60,667....



In Your calculation You are missed the 1st 2.5lakhs (exemption limit)..

It's calculate our total income from 1 to above. Also it's including the basic exemption limit....
taxable value_ 732000
upto__ 250000= nil
next __ 250000= 250000× 5% = 12500
balance amt = (732000-500000) = 232000
tax on 232000= 232000×20% =46400
total tax is = 12500+46400= 58900
education cess = 58900×3%= 1767
so total tax is = 58900+1767=60667
if tds is deduct by employer then in that case net payable amount is (60668- TDs amount deducted)
Thanks a lot to all of you for clarification.

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