Calculation of Income tax an Employee Below 60 Age A.Y.2018-19
ANNEXURE-I
SOME ILLUSTRATIONS
Example 1
For Assessment Year 2018-19
(A) Calculation of Income tax in the case of an employee(Male or Female) below the age of sixty years and having gross salary income of:
i) Rs.2,50,000/- ,
ii) Rs.5,00,000/- ,
iii) Rs.10,00,000/-
iv) Rs.55,00,000/-. and
v) Rs. 1,10,00,000/-
(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:
| Particulars | Rupees | Rupees | Rupees | Rupees | Rupees |
|---|---|---|---|---|---|
| (i) | (ii) | (iii) | (iv) | (v) | |
| Gross Salary Income (including allowances) | 2,50,000 | 4,00,000 | 10,00,000 | 55,00,000 | 1,10,00,000 |
| Contribution of G.P.F. | 45,000 | 50,000 | 1,00,000 | 1,00,000 | 1,00,000 |
Computation of Total Income and tax payable thereon
| Particulars | Rupees | Rupees | Rupees | Rupees | Rupees |
|---|---|---|---|---|---|
| (i) | (ii) | (iii) | (iv) | (v) | |
| Gross Salary | 2,50,000 | 4,00,000 | 10,00,000 | 55,00,000 | 1,10,00,000 |
| Less: Deduction U/s 80C | 45,000 | 50,000 | 1,00,000 | 1,00,000 | 1,00,000 |
| Taxable Income | 2,05,000 | 3,50,000 | 9,00,000 | 54,00,000 | 1,09,00,000 |
| (A) Tax thereon | Nil | 2,500* | 92,500 | 14,32,500 | 30,82,500 |
| Surcharge | 1,43,250 | 4,62,375 | |||
| Add: | Nil | 50 | 1850 | 31,515 | 70,898 |
| (i) Education Cess @ 2%. | Nil | 25 | 925 | 15,758 | 35,449 |
| (ii) Secondary and Higher Education Cess @1% | |||||
| Total tax payable | Nil | 2,575 | 95,275 | 16,23,023 | 36,51,222 |
* After rebate of Rs 2500 u/s 87A
D.P. Singh says
I FEEl PENSION IS NOT A INCOME. As it is a social wefare measure. As it was pointed out by HON’BLE SUPREME COURT in it Judgment in Case as and as under PRA-5 of the judgment as given below:
JUDGMENT OF THE CASE:-
Judgement of CAT PB New Delhi dated 21st day of April, 2015
OA 1165/2011 with OA 1165/2011 & OA 246/2012
Pratap Narayan & Others – Vs- Union of India
ORDER
PARA 5 of Above judgment:
“(1) Pension is neither a bounty not a matter of grace depending upon the sweet will of the employer, nor an ex gratia payment. It is a payment for the past service rendered. It is a social welfare measure rendering socio-economic justice to those who in the hey-day of their life ceaselessly toiled for the employer on an assurance that in their old age they would not be left in lurch. Pension as a retirement benefit is in consonance with and furtherance of the goals of the Constitution. The most practical raison detre for pension is the inability to provide for oneself due to old age. It creates a vested right and is governed by the statutory rules such as the Central Civil Services (Pension) Rules which are enacted in exercise of power conferred by Article 309 and 148 (5) of the Constitution.”
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