Let us discuss about the “tax credit Rs. 2000/-“, whose income will fall in between 2 to 5 lac according to Budget-2013.
Let us consider a person of age with in 60yrs, whose taxable income is 3 lac.
Now acc. to current rule (F.Y: 2012-2013) his/her tax calculation is as follow-
Tax @ 10% for the amount 1 lac (300000-200000=100000) = 10,000/-
Edu. cess @ 3% = 300/-
So, total tax = 10,300/-
Now as per Budget-2013 (F.Y: 2013-2014), whether his/her tax will be-
Case-1
10300-2000=8,300/- ,or
Case-2
10000-2000=8,000/-
Edu. Cess @3% = 240/-
Total Tax = 8,240/-
or, anything else. I think Case-2 will be acceptable.
This is the falacy. But I think you are wrong. Case 1 is right. Because if case 2 is right, then Mr. P.C. could change the slab. He may do the slab like below.
Taxable income<220000 - tax nil.
220000
But I think Mr. P.C. is not so fool. He had keep a door to take more education cess, which is not understandable to most of the tax payer.
Era pichan theke chorer moto chhuri mare.
Collected from the daily news paper: Eisamay, 01/03/2013
I also had the same opinion like saij. But, the above newspaper says different. I am still in confusion. Waiting for further clarification from Income Tax department.
I am also in confusion. I think I am right.
Case 2 is correct as the tax calculator in the official website of income tax dept support it.
Yes, you are correct. As for example, if your net taxable income be Rs.4,00,000, then your I.tax=18000, Edu cess is Rs. 540 (360+180) i.e. total tax liability=Rs 18540. But one thing is not understandable to me is that, why he had not said that if the taxable income is less than Rs. 2,20,000 then tax=0? This is the confusion.
why he had not said that if the taxable income is less than Rs. 2,20,000 then tax=0?
As I understand, if he told taxable income less than 2.2Lac is imply income tax is NIL, then there is a possibility to think for all person taxable income up to 2.2Lac is tax free.
I think the utility prepared by Mr Som is correct in all respect. He has posted such utility in
To download the utility please visit the following link-
… 4-t87.html
@jmmisir: I would appreciate if you don’t mind to upload the utility for ready reference. Thanks.
I know the utility is surely a very good one as it is made by beloved friend som.