RE:Benefit for people earning above 5 lakh
by Amitabh on Mar 09, 2008 05:17 PM Permalink
Rs 44000 plus 3 % cess.You see tax is calculated in slabs of income only.Even if you earn more than Rs 5 lacs,the first Rs 1,50,000 will be exempt.Then next Rs 1,50,000 will be taxed at 10 % and so on.So for any person who earns Rs 5 lacs or more,the benefit will be Rs 44,000.If you earn more than Rs 10 lacs,you also pay surcharge.Then your total tax saving will be Rs 48,400.Over and above this 3 % of your tax is levied as cess.That will be Rs 1,320 if you earn between rs 5 lacs and Rs 10 lacs and Rs 1,452 if you earn more than Rs 10 lacs.
