Question

Dr BS sharma is a lecturer in a government college is annual salary income is Rs282003 donate Rs4000 to charitable trust eligible for 50% deduction under section 80G of income tax act. He countributes Rs3000 to PF account, pay Rs40000 as LIC premium and deposit 2000 in public provident fund Rs675 is reduction is month from his salary has income tax income tax Dr Sharma is to pay in last month of the financial year is ?​

Answer 1

Gross income = Rs 282000

Standard deduction = Rs 25000

Deduction under section 80G for amount of donation under section 88G

=>

$( \frac{50}{100} \times 4000) = rs2000$

Taxable income

=> (282000-25000-2000) = Rs 255000

Total income tax =>

$(30000 + \frac{10}{100}(255000 - 200000))$

=>

$(30000 + \frac{10}{100} \times 55000)$

=> (30000+5500) = Rs 35500

Deposit admissible for tax rebates

1) contribute in PF = Rs 30000

2) LIC premium = Rs 14000

3) contribute in PPF = Rs 20000

Total = Rs 64000

Tax rebate =

$\frac{15}{100} \times 64000 = rs \: 9600$

Tax payable = 35500-9600 = Rs 25900

surcharge = 5% of 25900

=>

$\frac{5}{100} \times 25900 = rs \: 1295$

Total tax payable = 25900+1295 = Rs 27195

Income tax already paid by him before the Last month of the year = 11×675 = Rs 7425

income tax payable in the last month

= 27195- 7425 = Rs 19770