06-08-2010, 08:33 PM
Dear please find below working as desired.
<b>Income tax as per normal rates (1,470,000*12.5%) Rs. 183,750</b>
Income tax as per Marginal Relief formula
Income tax on maximum slab (1,450,000*11%) Rs. 159,500
Plus
Forty percent of excess amount i.e [(1,470,000-1,450,000)*20] Rs.8,000
<b>Total Income tax as per MR formula (159,500+8000) Rs. 167,500</b>
<b>Income tax liability whichever is lower i.e 167,500</b>
I hope you will find it helpful.
<b>Income tax as per normal rates (1,470,000*12.5%) Rs. 183,750</b>
Income tax as per Marginal Relief formula
Income tax on maximum slab (1,450,000*11%) Rs. 159,500
Plus
Forty percent of excess amount i.e [(1,470,000-1,450,000)*20] Rs.8,000
<b>Total Income tax as per MR formula (159,500+8000) Rs. 167,500</b>
<b>Income tax liability whichever is lower i.e 167,500</b>
I hope you will find it helpful.