Tax rate and exemption

[zurpk]

AOA

We shall calculate tax for the year and then the total tax for the year can be divided by 12 months. thus we can find tax per month.

For Example

Basic Salary of per month = Rs. 65,000
Medical Allowance(10% of B.S) Rs. 6,500
Total Gross Salary Rs. 71,500

Taxable Salary for the Year (65000*12) Rs. 780,000
Tax for the Year (780,000*7.50%) Rs. 58,500

Income Tax per month (58,500/12) Rs. 4,875

So the person will pay Rs. 4,875 per month as income tax if his Gross Salary is Rs. 71,500.

Please remember that we shall calculate tax for the year first and then we can calculate tax for the month.