Contractual Income Tax

[baqarsb]

Tell me which case is correct???



<b>Case1</b>

January 2010 Salary 300,000 (Income Tax 300,000x6%= 18,000)
February 2010 Salary 300,000 (Income Tax 300,000x6%= 18,000)

Then there is change in March 2010 i.e. salary will be 350,000 from January 2010.

Total Tax He/She paid till Feb 2010 = 18000+18000 = 36000

Now in March Income Tax calculation will be

350000x6 (January to June)= 2100000*6%= 126000

126000 (Total Tax of 6 months)

126000-36000 (less Jan & Feb Tax) = 90000

Now Total Income Tax/remaining number of months

90000/4 = 22500

<b>March income tax will be 22500</b>

<b>Case 2</b>


March 2010 income 350000+100000 (Arrears)=450000

450000x6%= 27000

<b>March tax will be 27000</b>