Calculation of Income tax in the case of a retired employee – below the age of 80 years
Example 7
For Assessment Year 2018-19
A. Calculation of Income tax in the case of a retired employee above the age of sixty years but below the age of 80 years and having gross pension of:
iv) Rs.4,50,000/-,
v) Rs.8,00,000/- ,
vi) Rs. 12,50,000/-.
B. What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:
|
Particulars |
Rupees (i) |
Rupees (ii) |
Rupees (iii) |
|
Gross Pension |
4,50,000 |
8,00,000 |
12,50,000 |
|
Contribution of P.P.F. |
70,000 |
1,00,000 |
1,50,000 |
Computation of Total Income and tax payable thereon
|
Particulars |
Rupees (i) |
Rupees (ii) |
Rupees (iii) |
|
Gross Pension |
4,50,000 |
8,00,000 |
12,50,000 |
|
Less: Deduction U/s 80C |
70,000 |
1,00,000 |
1,50,000 |
|
Taxable Income |
3,80,000 |
7,00,000 |
11,00,000 |
|
|
|
|
|
|
Tax thereon |
4,000 |
50,000 |
1,40,000 |
|
Add: (i) Education Cess @ 2%. (ii) Secondary and Higher Education Cess @1% |
80 40 |
1000 500 |
2800 1400 |
|
Total tax payable |
4120 |
51,500 |
1,44,200 |
Source: https://www.incometaxindia.gov.in