My young son has started earning as a merchant navy officer,its supposed to be tax free, does he need to file incom tax? he still does not even have a pan no.
This article is no longer valid. This takes the tax slabs for the year 2004 in the illustration which is no longer valid and is misleading. So either remove the article or update the same with new illustration.
Something as sensitive as tax calculations should not have misleading information
Re: tax related question
by Priyanka on Apr 24, 2009 02:46 PM Permalink
Hi..
Since you are earning 25,000 p.m. your yearly income will be 25,000 * 12 = rs.3,00,000
INCOME TAX RATE AMOUNT TO BE PAID 0 - 50,000 No tax NIL
50,001 to 60000-50000= 60,000 10% 10,000 * 10% = 1000
60,001 to 90000*20%= 1,50,000 20% 18,000
1,50,000 to 150000*30%= 8,50,000 30% 45,000
Total Tax payable = 1000 18000 45000= 64,000
Note: In the third slab 150000 to 850000 we have calculated on only 150000 bcos ur total yearly income is 3,00,000. So tax will be calculated on howmuch excess amt on 1,50,000 hence 3,00,000-1,50,000 = 1,50,000. On which we have calculated the tax.
Hope this is helpful.Please feel free to revert for further clarification.
