Basics of Income Tax

Tax Practical
Practical Income Tax

Income Tax Slab Rate is as follows :-

Note

Currently Slab Rate for Financial Year 2018-19 (Assessment Year 2019-20) is applicable for filing ITR

#### Example 1

Suppose a shopkeeper has

Sales 50 lacs

Purchase 30 lacs

Office Expenses 16 Lacs

What is his Profit?

Also Calculate his Tax

 Particular Amount Sales 5000000 Less Expense 4600000 Profit(PGBP Income) 400000 Tax 7500 Rebate 2500 Net Tax 5000 Education and Health Cess 4% 200 Tax + Cess 5200

#### Example 2

Suppose an Advocate has

Professional Receipts 10 lacs

Expenses

Rent 400000

Salary 100000

What is his Profit?

Also Calculate his Tax

 Particular Amount Sales 1000000 Less Expense 500000 Profit(PGBP Income) 500000 Tax 12500 Rebate 2500 Net Tax 10000 Education and Health Cess 4% 400 Tax + Cess 10400

Get live Maths 1-on-1 Classs - Class 6 to 12

### Transcript

INCOME TAX UPTO 250000 0 250000-500000 5% of (Income-250000) 5000001-1000000 20% of (Income-500000)+12500 >1000000 30% of (Income-500000)+112500 There is Rebate of 5000 2500 also if Income between 250000-350000 Example 1 Suppose an Employee gets a Salary of 15000 per month. What is Income Tax Payable by him? Monthly Salary=15000 Annual Salary=180000 Since Salary is less than 250000,no income tax is payable Example 2 Suppose an Employee gets a Salary of 35000 per month. What is Income Tax Payable by him? Monthly Salary=35000 Annual Salary=35000*12=420000 Income Tax =5%*(420000-250000) =5%* 170000 =8500 Rebate=0 Net Tax=8500 Cess = 3%*8500 = 255 Tax + Cess = 8755