1

CHAPTER–1 COMPUTATI
ONOFTAXLI
ABI
LITY

I
ncome-t
axr at
esf orAssessmentYear2018-
19:
UptoRs.2,50,000 : Nil
Rs.
2,50,
000t oRs. 5,
00,
000 : 5%
Rs.
5,00,
000t oRs. 10,
00,
000 : 20% pl
usRs.
12,500
AboveRs.10,00,000 : 30% pl
usRs.
1,12,
500

Taxr
atesforRESI DENTSENI ORCITI
ZENforAssessmentYear2018- 19:
UptoRs.3,00,000 : Nil
Rs.
3,00,
000t oRs. 5,
00,
000: 5%
Rs.
5,00,
000t oRs. 10,
00,000 : 20% plusRs.10,
000
AboveRs.10,00,000 : 30% plusRs.1,10,
000

Not
e:Incaseofanon-
resi
dentseni
orci
ti
zen,basi
cexempt
ioni
srest
ri
ctedt
oRs.
2,50,
000
onl
y.

TaxRatesforRESI DENTVERYSENI ORCI

TIZENforAssessmentYear2018-
19:
Upt oRs.5,00,000 : Nil
Rs.5,
00,000t oRs. 10,
00,
000 : 20%
Abov eRs.10,00,000 : 30% pl
usRs.1,
00,000

Not
e:In case ofa non-
resi
dentv
ery seni
orci
ti
zen,basi
c exempt
ion i
srest
ri
cted t
o
Rs.
2,50,
000

I
mpor
tantpoint
s:
 Total
incomeandt
axshoul
dber
oundedof
ftot
henear
estt
enr
upee.

 Arebat
eofRs.
2,500undersecti
on87Af orRESIDENTINDI
VIDUALSi
ncaseTAXABLE
I
NCOMEdoesnotexceedRs. 3,
50,000duri
ngtheprev
iousy
ear.

 ASURCHARGEof10%( taxontax)i
ncaset
axabl
eincomeexceedsRupeesFi
ft
ylakhs
butdoesnotexceedRupeesOnecror
e

 A SURCHARGEof15% (
taxont
ax)i
ncaset
axabl
eincomeexceedsRupeesONE
CRORE

 EDUCATIONCESSof3%t obechar
ged.Educat
ioncessi
stobecal
cul
atedont
het
otal
taxi
ncl
udingsur
char
ge.

 SENI
ORCI
TIZEN:AnI
ndi
vi
dual
whohasat
tai
nedt
heageof60y
ear
sormor
e

 VERYSENI
ORCI
TIZEN:AnI
ndi
vi
dual
whohasat
tai
nedt
heageof80y
ear
sormor
e

 “
MARGI
NAL RELI
EF”i
sav
ail
abl
ein case t
axabl
eincome exceedsRupeesFI
FTY
 2

LAKHSbutdoesnotexceedRs.
51,
95,
900.

 “MARGI
NALRELIEF”i
sal
soav
ail
abl
eincaset
axabl
eincomeexceedsRupeesONE
CROREmar
ginal
l
y.

 I
ncomest
axedatspecialr
ates:
 Longt er
m capitalgains 20%
 Shortterm capit
algainonsal eofli
stedshares
t
hroughrecognizedst ockexchange 15%
 Casual I
ncomes( e.g.wi nni
ngsfrom l
ott
ery) 30%

“
Basi
cexempt
ion”pr
ovi
sionsi
nbr
ieff
orv
ari
ousassesseesf
orA.
Y.2018-
19:

Resi
dent Non-Resi
dent
ForSuperseni
orcit
izen Rs.
5,00,
000 Rs.
2,50,
000
ForSeniorCi
ti
zen Rs.
3,00,
000 Rs.
2,50,
000
ForOthers Rs.
2,50,
000 Rs.
2,50,
000

“
Duedate”forfi
li
ngIncome-taxreturn:
 Iftheassesseissubj
ecttoTaxAuditu.s.
44AB:30thSept
ember
 IftheassesseisnotsubjecttoTaxAudit
:31stJul
y

1.Fi
ndoutthetaxli
abi
l
ityineachcasesepar atel
yofMr.
X(age30)i
fhi
sincomef
ort
he
pr
evi
ousy
ear2017-
18(AssessmentYear2018-19)i
s:-

 Rs.
2,60,
000 Rs.
2,75,
000 Rs.
3,00,
000
 Rs.
2,90,
000 Rs.
3,30,
000 Rs.
4,75,
445
 Rs.
5,00,
000 Rs.
10,00,
000 Rs.
50,00,
000
 Rs.
1,00,
00,
000 Rs.
2,10,
00,
000

2.Findoutt
hetaxl
i
abili
tyi
neachcaseseparat
elyofMr.Y(Resi
dentSeni
orci
ti
zen)i
fhi
sincome
forthepr
evi
ousyear2017-
18(AssessmentYear2018-
19)is:
-

 Rs.
2,70,
000 Rs.
3,00,
000 Rs.
3,40,
000
 Rs.
3,50,
000 Rs.
5,00,
000 Rs.
10,00,
000
 Rs.
1,00,
00,
000 Rs.
2,10,
00,
000

Whatdiffer
enceitwouldmakei fhehadbeenanon- residentforA.Y.
2018-19.
3.Mr.Aisaseniorcit
izenandanon- residentforthepr
ev i
ousy ear2017-18.Histaxabl
eincome
fortheassessmenty ear18-19isRs. 3,
50,000.Comput ehist axli
abil
it
y.Whatwi l
lbey our
answerifhehadbeenar esi
dentforther el
evantpr
eviousy ear.
 3

4.Fi
ndoutthetaxli
abi
li
tyi
neachcasesepar
atel
yofMr .
R(ar esi
dent)(
bornon01.
08.
1937)i
f
hi
sincomefort
heprevi
ousy
ear2017-
18(AssessmentYear2018-19)i
s:-

 Rs.
3,00,
000 Rs.
5,00,
000
Rs.
10,00,
000
 Rs.
1,00,
00,
000 Rs.
2,10,
00,
000

5.Computetaxli
abi
li
tyineachsepar
atel
yofMr.B(
ar esi
dent
)(age40years)i
fhi
stax
abl
eincome
st
fort
heprevi
ousyearendi
ng31 Mar ch2018(
AssessmentYear2018-
19)is:

 Rs.
50,
00,
000 Rs.
50,
00,
100 Rs.
50,
10,
000
 Rs.
51,
00,
000 Rs.
51,
95,
900 Rs.
54,
00,
000

6.Mr.Chasat axabl
eincomeofRs. 15,
00,
000fort
heprev
iousyear2017-
18.Thet
axabl
eincomeof
Rs.15,
00,000incl
udeswinni
ngfrom lot
ter
yamount
ingtoRs.
10,00,
000.Det
ermi
nehistaxli
abi
l
ity
forAssessmentYear2018-19.

7.Mr.
Rhaswonalot
ter
ypr
izeofRs.10,
00,
000on08.08.2017.Tax@ 30%wasdeductedatsour
ce.
Hehasnoot
heri
ncomeduri
ngtheprevi
ousyear17-
18.Det er
minehi
staxl
iabi
li
ty.