INCOME TAX

UPTO 250000 Nil

250000-500000 5% of Income Greater than 250000
500000-1000000 20% of Income Greater than 500000+12500
>1000000 30% of Income Greater than 1000000+1125

There is Rebate of 12500 also if Income between 250000-500000

(Applicable for ITR of Financial Year 2019-20 (AY 2020-21)
Also applicable for Payroll from 1 April 2019

There Is also 50000 standard Deduction to a Salaried Person which will be deducted from Annual Salary

Particular Case 1 Case 2

MONTHLY SALARY 10000 25000
ANNUAL SALARY 120000 300000
LESS STANDARD DEDUCTION 50000 50000
NET ANNUAL SALARY 70000 250000
TAX 0 0
REBATE 0 0
NET TAX 0 0
CESS 4%
TAX+ CESS
MONTHLY TDS
NET SALARY
 TAX
me Greater than 250000
ome Greater than 500000+12500
ome Greater than 1000000+112500

d from Annual Salary

Case 3 Case 4 Case 5 Case 6 Case 7

30000 40000 50000 100000 22000
360000 480000 600000 1200000 264000
50000 50000 50000 50000 50000
310000 430000 550000 1150000 214000
3000 9000 22500 157500 0 1150000
3000 9000 0 0 250000 0% 0
0 0 22500 157500 250000 5% 12500
900 6300 500000 20% 100000
23400 163800 150000 30% 45000
1950 13650 0 157500
48050 86350
 19-20

Q1 A person received monthly salary of 30000 pm.From 1 Sept his salary increased to 60000 pm.Calculate T

TIME PERIOD APRIL - AUG

MONTHLY SALARY 30,000.00
ANNUAL SALARY 360,000.00
LESS :- STANDARD DEDUCTION 50,000.00
NET ANNUAL SALARY 310,000.00
TAX 3,000.00
REBATE 3,000.00
NET TAX -
CESS 4% -
TAX+ CESS -
MONTHLY TDS -
NET SALARY 30,000.00

Note:

Before salary increase , we will calculate done normally by multiplying salary by 12

(30000*12=360000)
However, after salary increase we take proportionate salary as annual salary
(30000*5+60000*7=570000)

WORKING NOTE FOR TDS

PARTICULAR AMOUNT
TOTAL TAX 17,160.00
LESS TAX ALREADY DEDUCTED -
BALANCE TAX 17,160.00
BALANCE MONTHS 7
TDS (BALANCE TAX/BALANCE MONTHS) 2,451.00
y increased to 60000 pm.Calculate TDS from April to Aug and Sept to March?

SEP- MARCH 30000 5 150000

60,000.00 60000 7 420000
570,000.00 12 570000
50,000.00
520,000.00
16,500.00 520000
- 250000 0% 0
16,500.00 250000 5% 12500
660.00 20000 20% 4000
17,160.00 0 30% 0
2,451.00 0 16500
57,549.00

y multiplying salary by 12

ry as annual salary
Q2 A person received monthly salary of 60000 pm.From 1 Feb his salary increas

TIME PERIOD
MONTHLY SALARY
ANNUAL SALARY
LESS :- STANDARD DEDUCTION
NET ANNUAL SALARY
TAX
REBATE
NET TAX
CESS 4%
TAX+ CESS
MONTHLY TDS
NET SALARY

Note:

Before salary increase , we will calculate done normally by multiplying s

(60000*12=720000)
However, after salary increase we take proportionate salary as annual s
(60000*5+80000*7=760000)

WORKING NOTE

PARTICULAR
TOTAL TAX
TAX ALREADY DEDUCTED
BALANCE TAX
BALANCE MONTHS
TDS (BALANCE TAX/BALANCE MONTHS)
pm.From 1 Feb his salary increased to 80000 pm.Calculate TDS from April to Jan and Feb to March?

APRIL - JAN FEB- MARCH 60000 10 600000

60,000.00 80,000.00 80000 2 160000
720,000.00 760,000.00 12 760000
50,000.00 50,000.00
670,000.00 710,000.00
46,500.00 54,500.00
- - 710000
46,500.00 54,500.00 250000 0% 0
1,860.00 2,180.00 250000 5% 12500
48,360.00 56,680.00 210000 20% 42000
4,030.00 8,190.00 0 30% 0
55,970.00 71,810.00 0 54500

ulate done normally by multiplying salary by 12

ke proportionate salary as annual salary

AMOUNT
56,680.00
40,300.00
16,380.00
2.00
8,190.00
Q3 A person received monthly salary of 70000 pm.On 15 Feb he received an Annual Bonus of 100000. Calcu

Particular APRIL-JAN
MONTHLY SALARY 70,000.00
BONUS -
ANNUAL SALARY 840,000.00
LESS :- STANDARD DEDUCTION 50,000.00
NET ANNUAL INCOME 790,000.00
TAX 70,500.00
REBATE -
NET TAX 70,500.00
CESS 4% 2,820.00
TAX+ CESS 73,320.00
MONTHLY TDS 6,110.00
NET SALARY 63,890.00

WORKING NOTE

PARTICULAR AMOUNT
TOTAL TAX 94,120.00
TAX ALREADY DEDUCTED 61,100.00
BALANCE TAX 33,020.00
BALANCE MONTHS 2.00
TDS (BALANCE TAX/BALANCE MONTHS) 16,510.00
ual Bonus of 100000. Calculate TDS from April to Jan and Feb to March?

FEB-MARCH
70,000.00
100,000.00
940,000.00
50,000.00 890000
890,000.00 250000 0% 0
90,500.00 250000 5% 12500
- 390000 20% 78000
90,500.00 0 30% 0
3,620.00 0 90500
94,120.00
16,510.00
53,490.00
Q4 A person received monthly salary of 60000 pm from April to Dec in A ltd.On 1 Jan he left Altd and joined B Ltd

There can be 2 cases

1. Details of Previous Company given to new company

2. Details of Previous Company not given to new company

Details of Previous Company given to new company

TIME PERIOD APRIL - DEC

MONTHLY SALARY 60,000.00
ANNUAL SALARY 720,000.00
LESS :- STANDARD DEDUCTION 50,000.00
NET ANNUAL INCOME 670,000.00
TAX 46,500.00
REBATE -
NET TAX 46,500.00
CESS 4% 1,860.00
TAX+ CESS 48,360.00
MONTHLY TDS 4,030.00
NET SALARY 55,970.00

Salary for Old Co

Salary for New Co

WORKING NOTE FOR TDS

PARTICULAR AMOUNT
TOTAL TAX 51,480.00
TAX ALREADY DEDUCTED 36,270.00
BALANCE TAX 15,210.00
BALANCE MONTHS 3.00
TDS (BALANCE TAX/BALANCE
MONTHS) 5,070.00

Details of Previous Company not given to new company

TIME PERIOD APRIL - DEC

MONTHLY SALARY
ANNUAL SALARY
LESS :- STANDARD DEDUCTION
NET ANNUAL INCOME
TAX
REBATE
NET TAX
CESS 4%
TAX+ CESS
MONTHLY TDS
NET SALARY

Salary for Old Co

Salary for New Co

n 1 Jan he left Altd and joined B Ltd @ 65000 pm.Calcuate TDS to be deducted by Altd and B ltd?

60000 9 540000
65000 3 195000
735000

JAN - MAR
65,000.00
735,000.00
50,000.00 685000
685,000.00 250000 0% 0
49,500.00 250000 5% 12500
- 185000 20% 37000
49,500.00 0 30% 0
1,980.00 0 49500
51,480.00
5,070.00
59,930.00
JAN - MAR
65,000.00
195,000.00
50,000.00
145,000.00
-
Q5 A person received monthly salary of 60000 pm from April to Dec in A ltd.He remained jobless for 10 days and

There can be 2 cases

1. Details of Previous Company given to new company

2. Details of Previous Company not given to new company

Details of Previous Company given to new company

TIME PERIOD APRIL - DEC JAN - MAR

MONTHLY SALARY 60,000.00 65,000.00
ANNUAL SALARY 720,000.00 714,032.00
LESS :- STANDARD DEDUCTION 50,000.00 50,000.00
NET ANNUAL INCOME 670,000.00 664,032.00
TAX 46,500.00 45,306.00
REBATE - -
NET TAX 46,500.00 45,306.00
CESS 4% 1,860.00 1,812.24
TAX+ CESS 48,360.00 47,118.00
MONTHLY TDS 4,030.00 3,616.00
NET SALARY 55,970.00 61,384.00

WORKING NOTE

Salary for Old Co

Salary for New Co

 PARTICULAR AMOUNT
TOTAL TAX 47,118.00
TAX ALREADY DEDUCTED 36,270.00
BALANCE TAX 10,848.00
BALANCE MONTHS 3.00
TDS (BALANCE TAX/BALANCE
MONTHS) 3,616.00

Details of Previous Company not given to new company

TIME PERIOD APRIL - DEC JAN - MAR

MONTHLY SALARY 65000
ANNUAL SALARY 174032
LESS :- STANDARD DEDUCTION 50000
NET ANNUAL INCOME 124032
TAX
REBATE
NET TAX
CESS
TAX+ CESS
MONTHLY TDS
NET SALARY

Salary for Old Co

Salary for New Co

d jobless for 10 days and from 11 Jan he joined B Ltd @ 65000 pm.Calcuate TDS to be deducted by Altd and B ltd?

60000 9 540000
65000 2 130000 174032.3 21
44032.26
714032.3

664032
250000 0% 0
250000 5% 12500
164032 20% 32806.4
0 30% 0
0 45306.4