12-23-2010, 12:15 PM
Guys,
Please let me know if the below mentioned working is correct or not.
Withholding Tax Working without Marginal Relief
Grossc Salary Including All Allowances 37,400.00
No of Months 12.00
Annual salary 448,800.00
10% Medical Allowance (44,880.00)
Taxable Salary 403,920.00
Tax Rate 2.50%
Tax amount 10,098.00
Monthly Deduction 841.50
Withholding Tax Working with Marginal Relief
Grossc Salary Including All Allowances 37,400.00
No of Months 12.00
Annual salary 448,800.00
10% Medical Allowance (44,880.00)
Taxable Salary 403,920.00
Taxable Salary 400,000.00
Tax Rate 1.50%
Tax amount 6,000.00
Provided further that where the total income of a taxpayer
marginally exceeds the maximum limit of a slab in the Table, the
income tax payable shall be the tax payable on the maximum of that
slab plus an amount equal to â
(i) 20% of the amount by which the total income exceeds the said limit
where the total income does not exceed Rs. 550,000.
In this case 3,920.00
Tax Rate 20.00%
Tax amount 784.00
Total Tax for the year 6,784.00
Saving 3,314.00
Please let me know if the below mentioned working is correct or not.
Withholding Tax Working without Marginal Relief
Grossc Salary Including All Allowances 37,400.00
No of Months 12.00
Annual salary 448,800.00
10% Medical Allowance (44,880.00)
Taxable Salary 403,920.00
Tax Rate 2.50%
Tax amount 10,098.00
Monthly Deduction 841.50
Withholding Tax Working with Marginal Relief
Grossc Salary Including All Allowances 37,400.00
No of Months 12.00
Annual salary 448,800.00
10% Medical Allowance (44,880.00)
Taxable Salary 403,920.00
Taxable Salary 400,000.00
Tax Rate 1.50%
Tax amount 6,000.00
Provided further that where the total income of a taxpayer
marginally exceeds the maximum limit of a slab in the Table, the
income tax payable shall be the tax payable on the maximum of that
slab plus an amount equal to â
(i) 20% of the amount by which the total income exceeds the said limit
where the total income does not exceed Rs. 550,000.
In this case 3,920.00
Tax Rate 20.00%
Tax amount 784.00
Total Tax for the year 6,784.00
Saving 3,314.00