I could not understand when on an income upto 5 lakhs, the old tax is 60000 and new tax is 40000 the benefit amounts to 44000? Could you please explain?
RE:Benefit on Tax
by sujith kumar on Mar 01, 2008 07:24 AM Permalink
We do not pay income for entire 5 lakhs but it is paid in slabs of 1.5 lakhs, 1.5 to 2.5 lakhs 2.5 to 3 lakhs and 3 to 5 lakhs. For these slabs there is a reduction of 4000, 10000 , 10000 and 20000 thus making an overall saving of 44000
