Calculation Of Income Tax Assessment Year 2018-19 – Medical Treatment Expenditure

Example 3

For Assessment Year 2018-19

Calculation of Income Tax in the case of an employee below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN furnished to employer).

S.No. Particulars Rupees
1 Gross Salary 5,20,000
2 Medical Reimbursement by employer on the treatment of self and dependent family member 35,000
3 Contribution of GPF 20,000
4 LIC Premium 20,000
5 Repayment of House Building Advance 25,000
6 Tuition fees for two children 60,000
7 Investment in Unit-Linked Insurance Plan 30,000
8 Interest Income on Savings Account 8,000
9 Interest Income on Time Deposit 15,000

Computation of Tax

S.No. Particulars Rupees
1 Gross Salary 5,20,000
2 Add: Perquisite in respect of reimbursement of Medical Expenses
In excess of Rs.15,000/- in view of Section 17(2)(v)
20,000
3 Income from Other Sources
i)               Interest Income on Savings Account Rs 8,000
ii)             Interest Income on Time Deposit Rs 15,000
23,000
4 Gross Total Income 5,63,000
5 a. Less: Deduction U/s 80C
(i) GPF
Rs.20,000/-
(ii) LIC
Rs.20,000/-
(iii) Repayment of House Building Advance
Rs.25,000/-
(iv) Tuition fees for two children
Rs.60,000/-
(v) Investment in Unit-Linked Insurance Plan
Rs.30,000/-
Total           =Rs.1,55,000/-
1,58,000
Restricted to Rs. 1,50,000/-
b. Less: Deduction u/s 80TTA on Interest Income on
savings account (restricted to Rs 8000/- – available only
on Savings account interest) Rs 8000
Total deduction available Rs 1,58,000/-
6 Total Income 4,05,000
7 Income Tax thereon/payable 7,750
8 Add:
(i).    Education Cess @2%

(ii).    Secondary and Higher Education Cess @1%

155

78

9 Total Income Tax payable 7983
10 Rounded off to 7980

 

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