Income tax Calculation Example 2 for Salary Employees 2023-24 – Example 2
Example 2
For Assessment Year 2023-24
Calculation of Income Tax in the case of an employee below the age of sixty years having a handicapped dependent (With valid PAN furnished to employer).
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 4,70,0(X) |
| 2 | Amount spent on treatment of a dependent, being person with disability (but not severe disability) |
7000 |
| 3 | Amount paid to LIC with regard to annuity for the maintenance of a dependent, being person with disability (But not severe disability) |
60,000 |
| 4 | GPF Contribution | 25,000 |
| 5 | LIP Paid | 10,000 |
| 6 | Interest Income on Savings Account | 12,000 |
Computation of Tax
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 4,70,000 |
| 2 | Less: Standard deduction u/s 16(ia) | 50,000 |
| 3 | Add: Income from Other Sources Interest Income on Savings Account |
Rs 12,000 |
| 4 | Gross Total Income | 4,32,000 |
| 5 | Less: Deduction U/s 80DD (Restricted to Rs.75,000/- only) | 60,000 |
| 6 | Less: Deduction U/s 80C (i) GPF Rs.25,000/- (ii) LIP Rs.10,000/- |
35,000 |
| 7 | Less: Deduction u/s 8OTTA on Interest Income on savings account (restricted to Rs 10000/-) |
10000 |
| 8 | Total Income | 3,27,000 |
| 9 | Income Tax thereon/payable (includes Rebate of Rs 12500 as per Section 87A) |
Nil |
| 10 | Add: Health & Education Cess @ 4%. |
Nil |
| 11 | Total Income Tax payable | Nil |
| 12 | Rounded off to | Nil |
(a), or Aadhaar number, as the case may be, # It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act.