Total taxable income of the assessee

II

In association with Ernst & Young, we have attempted to give below a simple income-tax calculator which helps individual taxpayers to estimate the tax liability at a given income level. The income tax rates applicable for financial
year 2007-2008 and financial year 2008-2009 of individuals are listed below: Tax on the above
Surcharge @ 10%
EXISTING SLAB RATES (FINANCIAL YEAR 2007-2008)
Tax Rates Tax payable (including surcharge) - [A]
Category I II III
Tax payable on Income of Rs 1,000,000
Male (age upto 64 years) Resident Female (upto 64 years) Senior Citizens (65 and above) 100% of income in excess of Rs 1,000,000

TAX RATES Taxable Income (Rs.) Rate % Taxable Income (Rs.) Rate % Taxable Income (Rs.) Rate % Tax payable (including surcharge) - [B]
0-110,000 NIL 0-145,000 NIL 0-195,000 NIL
110,001-150,000 10 145,001-150,000 10 195,001-250,000 20
150,001-250,000 20 150,001-250,000 20 250,001 onwards 30 Tax payable (including surcharge) - [C] = [A] or [B] whichev
250,001 onwards 30 250,001 onwards 30

SLAB RATES (AS PER BUDGET 2008-2009)

Tax Rates
Category I II III

Male (age upto 64 years) Resident Female (upto 64 years) Senior Citizens (65 and above)

TAX RATES Taxable Income (Rs.) Rate % Taxable Income (Rs.) Rate % Taxable Income (Rs.) Rate %
0-150000 NIL 0-180000 NIL 0-225000 NIL
150001-300000 10 180000-300000 10 225001-300000 10
300001-500000 20 300001-500000 20 300001-500000 20
500001 onwards 30 500001 onwards 30 500001 onwards 30

Surcharge: Surcharge of 10% of the total tax liability is applicable where the total income exceeds Rs.10 lakhs.

Cess: An education cess of 2% and a secondary and higher education cess of 1% is payable on the amount of income tax and surcharge.

Marginal Relief: This relief is provided to ensure that the additional income tax payable, including surcharge, on excess of income over Rs.10 lakhs is limited to the amount by which the income is more than Rs.10 lakhs.

Income Tax calculator (Refer to steps below)

Marginal Relief = [A] - [C]
ENTER CATEGORY Resident Female(upto 64 years)

Amount
Particulars Male Resident Female (upto 64 years) Senior Citizen (65 and above)
Pre- Budget Post- Budget Pre- Budget Post- Budget Pre- Budget Post- Budget Rs.

Total Income excluding income taxable at special rates 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000

Gross Total Income 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 1,300,000 -

Male
Less: Deductions under section 80C for specified investments (Note 2) 100,000 100,000 100,000 100,000 100,000 100,000 Resident Female(upto 64 years)
Senior Citizen (65 and above)

Taxable Income- Rounded off under section 288A of the Act 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 -

Income tax payable 309,000 265,000 305,500 262,000 296,000 257,500 -

Total Income tax payable 309,000 265,000 305,500 262,000 296,000 257,500 -

Total taxable income of the assessee

Add: Surcharge Payable 30,900 26,500 30,550 26,200 29,600 25,750 -

Add: Education cess @ 2% 6,798 5,830 6,721 5,764 6,512 5,665 -

Tax payable (including surcharge) - [A]
Add: Higher Education cess @ 1% 3,399 2,915 3,361 2,882 3,256 2,833 -
Tax payable on Income of Rs 1,000,000
100% of income in excess of Rs 1,000,000
Total Income Tax payable (Rounded off as per section 288B) of the Act 350,100 300,250 346,130 296,850 335,370 291,750 -
Tax payable (including surcharge) - [B]

The following steps should be followed while using the tax calculator:

Step 1. Enter the total income which is chargeable to tax at normal rates in the right most column. Tax payable (including surcharge) - [C] = [A] or [B] whichev

Step 2. Enter the total amount of investments eligible for deductions under Section 80C of the Income-tax Act ('Act').

Step 3. The total income-tax payable will be calculated by the tax calculator on the basis of the details provided in Step 1 and Step 2.
Marginal Relief = [A] - [C]
Note 1: The shaded portion appearing in the tax calculator is an illustrative example and no amounts should be entered in this portion. The individual tax payer should use the last column to calculate the total tax liability.

Note 2: In computing the total income the amounts paid or deposited in the previous year, towards premium on Life Insurance policies, Provident Funds, specified mutual funds, tuition fees for children etc. can be claimed as a deduction to the maximum of Rs 100,000 per annum under Section 80C of the Act.

Note 3: This is a simple tax calculator and will help individual tax payers in arriving at the estimated tax liability. It may not be applicable to all situations. The individuals should not rely on this calculator for finding out the actual income-tax liability.
VANITHA NAGARAJ BELUR Annexure 2
PAN : AEUPV3105P
Assessment Year : 2007-2008
Residential Status : Not Ordinarily Resident

Computation of Marginal Relief and Income Tax payable by the assessee

Particulars Amount

Tax payable by the assessee will be least of [A] and [B]

Total taxable income of the assessee 1,004,833

Income - R/Off 1,004,830

Tax on the above 247,949

ADD Surcharge @ 10% 24,795

Tax payable (including surcharge) - [A] 272,744

Tax payable on Income of Rs 1,000,000 246,500

ADD 100% of income in excess of Rs 1,000,000 4,830

Tax payable (including surcharge) - [B] 251,330

Tax payable (including surcharge) - [C] = [A] or [B] whichever is less 251,330

Marginal Relief = [A] - [C] 21,414