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Tax calculation in ITR1

bhuvana (Accounts) (150 Points)

27 July 2020

Tried filing e-return for FY2019-20. Tax payable is getting auto calcutated on Total Taxable income in ITR1.First slab of NIL tax is not being taken into a/c.Rs.2.50L is not getting deducted frm taxable income. Can anyone help on this pls..

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13 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 27 July 2020

Are you filing form ITR 1 online or through utility download from income tax website??

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bhuvana (Accounts) (150 Points)
Replied 28 July 2020

Filing online in the efiling portal..

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 July 2020

Is there showing any tax liability?
What is your total income?

bhuvana (Accounts) (150 Points)
Replied 28 July 2020

Taxable income is 558650/- Tax payable being shown is 24,300/-. No other tax liability is neither there nor being shown.

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 July 2020

Tax is Nil up to 2,50,000/-
2,50,000/- to 5,00,000 is 5%
5,00,000 to 10,00,000 is 20 %
than calculation is right.
Tax liability is 12,500+11,800=24,300

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bhuvana (Accounts) (150 Points)
Replied 28 July 2020

Still not clear...pls help

1. 250000 - NIL

2. 558650- 250000 = 308650 *5% = 15432/-

Is this not the calculation???

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 July 2020

It's correct, if your income is 5,58,650 than your liability is 24,230 as per computation after allowing 2,50,000 as nil
as is mentioned above
There is no mistake in computation. First slab nil is already taken into account, after that your liability is 24,230/-

bhuvana (Accounts) (150 Points)
Replied 28 July 2020

Pls give calculation for 24,230/-

558650- 250000 = 308650 *5% = 15432/- Is this not the calculation???

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 July 2020

Calculation:
(5,00,000-2,50,000)=2,50,000*5 %, =12,500
(5,58,650-5,00,000)=58,650*20%,=11,730/-

So, total 12,500+11,730=24,230

Up to 5,00,000 tax rate 5%
income above 5,00,000 (I e 58650 in your case tax) @ 20%

So, Tax is Nil up to 2,50,000/-
2,50,000/- to 5,00,000 means second 2,500,000 is 5%
5,00,000 to 10,00,000 after 5,00,000 is 20 %

bhuvana (Accounts) (150 Points)
Replied 28 July 2020

Thank you so much for clarifying...

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 28 July 2020

Most welcome,

One more things ...
if your income less than 5,00,000 than there is no tax payable....i.e Zero tax

because if income up to 5,00,000 than you will get rebate under section 87A of Rs.12,500 or tax, whichever is lesser. from your liability (which is 12,500 if income is up to 5,00,000) and finally tax payable will be Zero.