COMPUTATION OF INCOME TAX

TAX YEAR 2019 (01.07.2018 TO 30.06.2019)

Annual Salary
TAXABLE INCOME 960,000

Tax - salaried 2,000

Gross tax Annually Tax 2,000

 WORKING OF TAX LIABILITY

TAX CALCULATION
SALARIED NON-SALARIED
Income Tax slabs Tax Tax slabs Tax Income
Tax rate % rate % Tax

1 - 0 400,000 0.00 1 0 400,000 0.00 -

2 - 400,001 800,000 0.00 2 400,001 800,000 0.00 1,000
3 2,000 800,001 1,200,000 0.00 3 800,001 1,200,000 0.00 2,000
4 - 1,200,001 2,400,000 5.00 4 1,200,001 2,400,000 5.00 -
5 - 2,400,001 4,800,000 10.00 5 2,400,001 4,800,000 10.00 -
6 - 4,800,001 15.00 6 4,800,001 15.00 -
7 7
8 TOTAL 3,000
9
10
11

2,000 TOTAL

Tax cred its on average rate

S.61 Charitable donations Maximum Limit (lower of a, b and c)

a b
(i) for individual or AOP Total 30%
(ii) for a company Total 20% c
of taxable income
S.62 Investment in shares Total cost 500,000 of taxable income
& Insurance
15% of taxable income
S. 63 Contribution to an ApprovTotal cost No Limit
Pension Fund.
2% additional contribution allowed if fund is joined after 45 years of age 20% of taxable income

S. 64 Profit on debt Total profit 750,000

ReductIon In tax lIabIlIty 50% of taxable income

Clause (1A) of Part III of 2nd schedule 50% of tax shall be reduced if age is 60 years or more at the first day of
tax year and total income does not exceed Rs. 1,000,000

Clause (2) of Part III of 2nd schedule
50% of tax payable on income from salary shall be reduced in case of
a full time teacher or a researcher, employed in a non profit education
or research institution duly recognized by Higher Education
Commission, a Board of Education or a University recognized by the
Higher Education Commission, including government training and
research institution,