Total Taxable Income Of The Assessee Ii In Association With

Total taxable income of the assessee II In association with Ernst & Young, we have attempted to give below a simple income-tax calculator which helps individual taxpayers to estimate the tax liability at a given income level. The income tax rates applicable for financial year 2007-2008 and financial year 2008-2009 of individuals are listed below:

Tax on the above Surcharge @ 10%

EXISTING SLAB RATES (FINANCIAL YEAR 2007-2008) Category

Tax Rates II

I Male (age upto 64 years)

TAX RATES

Taxable Income (Rs.) 0-110,000 110,001-150,000 150,001-250,000 250,001 onwards

Tax payable (including surcharge) - [A] III

Resident Female (upto 64 years) Rate % NIL 10 20 30

Taxable Income (Rs.) 0-145,000 145,001-150,000 150,001-250,000 250,001 onwards

Rate % NIL 10 20 30

Tax payable on Income of Rs 1,000,000 100% of income in excess of Rs 1,000,000

Senior Citizens (65 and above) Taxable Income (Rs.) 0-195,000 195,001-250,000 250,001 onwards

Rate % NIL 20 30

Tax payable (including surcharge) - [B]

Tax payable (including surcharge) - [C] = [A] or [B] whichev

SLAB RATES (AS PER BUDGET 2008-2009) Category

Tax Rates II

I Male (age upto 64 years)

TAX RATES

Taxable Income (Rs.)

0-150000 150001-300000 300001-500000 500001 onwards

III

Resident Female (upto 64 years) Rate %

NIL 10 20 30

Taxable Income (Rs.)

Rate %

0-180000 180000-300000 300001-500000 500001 onwards

NIL 10 20 30

Senior Citizens (65 and above) Taxable Income (Rs.)

Rate %

0-225000 225001-300000 300001-500000 500001 onwards

NIL 10 20 30

Surcharge: Surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs.10 lakhs. Cess: An education cess of 2% and a secondary and higher education cess of 1% is payable on the amount of income tax and surcharge. Marginal Relief: This relief is provided to ensure that the additional income tax payable, including surcharge, on excess of income over Rs.10 lakhs is limited to the amount by which the income is more than Rs.10 lakhs. Income Tax calculator (Refer to steps below) Marginal Relief = [A] - [C] ENTER CATEGORY

Resident Female(upto 64 years) Amount Particulars

Male Pre- Budget

Post- Budget

Resident Female (upto 64 years) Pre- Budget Post- Budget

Senior Citizen (65 and above) Pre- Budget Post- Budget

Rs.

Total Income excluding income taxable at special rates

1,300,000

1,300,000

1,300,000

1,300,000

1,300,000

1,300,000

Gross Total Income

1,300,000

1,300,000

1,300,000

1,300,000

1,300,000

1,300,000

100,000

100,000

100,000

100,000

100,000

100,000

1,200,000

1,200,000

1,200,000

1,200,000

1,200,000

1,200,000

-

Income tax payable

309,000

265,000

305,500

262,000

296,000

257,500

-

Total Income tax payable

309,000

265,000

305,500

262,000

296,000

257,500

-

Add: Surcharge Payable

30,900

26,500

30,550

26,200

29,600

25,750

-

Add: Education cess @ 2%

6,798

5,830

6,721

5,764

6,512

5,665

-

Add: Higher Education cess @ 1%

3,399

2,915

3,361

2,882

3,256

2,833

-

350,100

300,250

346,130

296,850

335,370

291,750

-

Less: Deductions under section 80C for specified investments (Note 2)

Taxable Income- Rounded off under section 288A of the Act

Male Resident Female(upto 64 years) Senior Citizen (65 and above)

Total taxable income of the assessee

Tax payable (including surcharge) - [A] Tax payable on Income of Rs 1,000,000 100% of income in excess of Rs 1,000,000 Total Income Tax payable (Rounded off as per section 288B) of the Act

Tax payable (including surcharge) - [B] The following steps should be followed while using the tax calculator: Step 1. Enter the total income which is chargeable to tax at normal rates in the right most column.

Tax payable (including surcharge) - [C] = [A] or [B] whichev

Step 2. Enter the total amount of investments eligible for deductions under Section 80C of the Income-tax Act ('Act'). Step 3. The total income-tax payable will be calculated by the tax calculator on the basis of the details provided in Step 1 and Step 2. Marginal Relief = [A] - [C] Note 1: The shaded portion appearing in the tax calculator is an illustrative example and no amounts should be entered in this portion. The individual tax payer should use the last column to calculate the total tax liability. Note 2: In computing the total income the amounts paid or deposited in the previous year, towards premium on Life Insurance policies, Provident Funds, specified mutual funds, tuition fees for children etc. can be claimed as a deduction to the maximum of Rs 100,000 per annum under Section 80C of the Act. Note 3: This is a simple tax calculator and will help individual tax payers in arriving at the estimated tax liability. It may not be applicable to all situations. The individuals should not rely on this calculator for finding out the actual income-tax liability.

VANITHA NAGARAJ BELUR PAN : AEUPV3105P Assessment Year : 2007-2008 Residential Status : Not Ordinarily Resident

Annexure 2

Computation of Marginal Relief and Income Tax payable by the assessee

Particulars

Amount

Tax payable by the assessee will be least of [A] and [B] Total taxable income of the assessee Income - R/Off

ADD

ADD

1,004,833 1,004,830

Tax on the above Surcharge @ 10%

247,949 24,795

Tax payable (including surcharge) - [A]

272,744

Tax payable on Income of Rs 1,000,000 100% of income in excess of Rs 1,000,000

246,500 4,830

Tax payable (including surcharge) - [B]

251,330

Tax payable (including surcharge) - [C] = [A] or [B] whichever is less

251,330

Marginal Relief = [A] - [C]

21,414