Income tax Calculation Example 3 for Salary Employees 2023-24 – Example 3
Example 3
For Assessment Year 2023-24
Calculation of Income Tax in the case of an employee, below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN* furnished to employer).
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 5,55,000 |
| 2 | Medical Reimbursement by employer on the treatment of self and dependent family member | 35,000 |
| 3 | Contribution of GPF | 20,000 |
| 4 | LIC Premium | 20,000 |
| 5 | Repayment of House Building Advance | 25,000 |
| 6 | Tuition fees for two children | (,0,000 |
| 7 | Investment in Unit-Linked Insurance Plan | 30,000 |
| 8 | Interest Income on Savings Account | 8,000 |
| 9 | Interest Income on Time Deposit | 15,000 |
Computation of Tax
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 5.55.000 |
| 2 | Add: Perquisite in respect of reimbursement of Medical Expenses | 35 |
| 3 | Less: Standard deduction u/s 16(ta) | 50 |
| 4 | Income from Other Sources i)Interest Income on Savings Account Rs 8,000 ii)Interest Income on Time Deposit Rs 15.000 |
23 |
| 5 | Total Income | 5.63.000 |
| 6 | a. Less: Deduction U/s 80C (i)GPF Rs.20,000/- (ii)LIC Rs.20,000/- (iii)Repayment of House Building Advance Rs.25,000/- (iv)Tuition fees for two children Rs.60,000/- (v)Investment in Unit-Linked Insurance Plan Rs 30 000/- Total .4:U.1,55,000/- Restricted to Rs. 1,50,000/- b. Less: Deduction u/s 8OTTA on Interest Income on savings account (restricted to Rs 10,000/- – available only on Savings account interest) Rs 8000 Total deduction available Rs 1,58,00W- |
1,58,000 |
| 7 | Total Income | 405000 |
| 8 | Income Tax thereon/payable (includes Rebate of Rs 12500 as per Section 87A) |
Nil |
| 9 | Add: Health & Education Cess A 4%. |
Nil |
| 10 | Total Income Tax pax able | Nil |
| 12 | Rounded off to | Nil |
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.