Could someone please verify if my calculation of India income tax below is correct? If not, I would appreciate if the correct detailed calculation & explanation could be provided. Thanks!
April Income Tax Calculation (Male employee < 65 yo):
Basic Salary (Regular Income): 22,500
Overtime (Irregular Income): 1,500
Annual Regular Income (after projection) = 22,500*12 = 270,000
Annual Taxable Income = 270,000 + 1,500 = 271,500
Based on tax slab, Marginal Tax Rate: 30%
Income Tax Calculation on REGULAR INCOME:
Annual tax on regular income = 5,000 + 20,000 + (270,000 - 250,000)*30% = 31,000
Education cess = 31,000*2% = 620
Annual tax = 31,000 + 620 = 31,620
Income Tax in April for Regular Income = 31,620/12 = 2,635
Income Tax Calculation on IRREGULAR INCOME:
Tax on irregular income = 1,500*30% = 450
Education cess: 450*2% = 9
Income Tax in April for Irregular Income = 450 + 9 = 459
So, Income Tax in April that the employee has to pay = 2,635 + 459 = 3,094
2007-03-15
15:37:52
·
2 answers
·
asked by
chan_tp79
1