Exe:3 CALCULATION OF INCOME TAX

Date:7/2/20

AIM:
To calculate the income tax to be paid by an individual in India for the financial
year 2019-2020.

PROCEDURE:
Step1: Open the salary details and enter the details of the employee Pan No.
department, designation, D.O.B.
Step2: Assume the basic pay as Rs.30,000 for all the 12 months starting from
April 2019.
Step3: Assume the dearness Allowance of Rs.2,000 per month.
Step4: Assume the house rent allowance receives as Rs.5,000 per month.
Step5: Assume special allowance of Rs.2000 per month.
Step6: Calculate the sum of all the components in the columns with total.
Step7: Calculate the total gross salary using ‘SUM’ function.
Step8: Assume an arrear amount of Rs.20,000 other remuneration of Rs.10,000
and add the figure along with the total gross salary.
Step9: Go to the working sheet and enter all the personal details.
Step10: Link the gross income with all allowances from the sheet ‘Salary
details’.
Step11: Based on the details asked for in the ‘working sheet’ fill up the columns
(all incomes and expenses)
Step12: Calculate the total tax payable based on the taxable incomes.
Step13: Add education and health cess (4% of tax)
Step14: Find the total tax amount to be paid
CALCULATION:
Step1: The value of Gross Annual Income is been linked with the ‘Salary details’
Step2: The value of Basic Pay and Dearness Allowance is been linked with ‘Salary
details’. Then calculate (40% of both basic and dearness allowance).
 To find the value of rent paid, assume rent paid, assume rent of Rs. 15000
per month. Then calculate [ Rent paid – 10% of both basic and dearness
allowance]. HRA is linked with ‘salary details’. The minimum of above 3 is
expected.
Step3: Assume other exempted receipts / allowances at “0”
Step4: Assume professional tax as Rs. 2350
Step5: The value of salary after deduction allowances u/s 10 is calculated by E18 =
[ E8-E14-E13-E16-E17]
Step6: To calculate interest received from investments.
 Assume bank amount as Rs. 1000
 Assume N.S.C and Post Office M.1.S as ‘0’
 Assume post office recurring deposit as Rs. 10000
 Assume any other income as Rs. 20000 and Rs. 10000
 Assume home loan interest paid as Rs. 100000
Step7: Assume home loan interest paid as Rs.100000
 Assume loss from house property as ‘0’
 Assume additional tax exemption as ‘0’
 Assume interest paid as’0’
 Gross Total income is calculated by E34=E28-D30
Step8: Assume value of EPF and VPF as Rs.50000
 Assume PPF as Rs.20000
 Assume senior citizen saving scheme as ‘0’
 Assume N.S.C as Rs.’0’
 Assume tax saving Fixed deposit as Rs.30000
 Assume tax saving bond as Rs.10000
 Assume E.L.S.S as Rs.’0’
 Assume Life Insurance Premium as Rs.200000
 Assume NPS as ‘0’
 Assume pension plan as ‘0’
 Assume 80CCD as ‘0’
  Assume housing plan (Principle Repayment) at Rs.150000
 Assume Sukanya Samriddhi account as ‘0’
 Assume stamp duty and registration as ‘0’
 Assume tution fees as ‘0’
Step9: Total deduction under 80CC, 80CCC, 80CCD is Rs.150000 (Maximum)
Step10: Assume additional deduction under 80CCDNPS as Rss.25000
Step11: Assume deduction under RGESS as ’0’
Step12: Income after deduction under 80CC, 80CCC and 80CCD [E54=E34-
SUM(E51:E53)]
Step13: Assume 80D medical insurance (self) as Rs.20000
 Assume 80D medical insurance (parent) as Rs.20000
 Assume 80E Interest paid as’0’
 Assume 80DD medical treatment as ‘0’
 Assume 80DDB Expenditure as’0’
 Assume 80G, 80GGA, 80GGc as Rs.3000
 Assume 80GG as Rs.0
 Assume 80U for physically disable as’0’
 Assume 80TTA as ‘0’
 Total income (E65=E54-D56-D57-D58-D59-D60-D61-D62-D63-D64)
Step14: Calculate tax payable( E67=E65*5/100)
 Assume tax rebate as Rs.12500
 Total tax payable (E69=E67-E68)
Step15: Assume education cess+ Health cess at 4% (E71=E69*4/100)
Step16: Net tax payable is calculated as (E72=E69+E71)
Steo17: Assume Advance tax paid as ’0’
Step18: Tax remaining to be paid (E74=E72-E73)

RESULT:
Thus the calculation of income tax for the assessment year 2019-2020 has been calculated.