Mr. Ravi is correct in this regard. The tax limit upto Rs. 5,00,000 is 10%. That means when you cross Rs. 5,00,000 you have to pay 20% on additional amount. In addition a cess of 3% will also be charged.
1,80,000 (for males) will be exempted from Tax. If Income is 5,00,000, the Tax will be calculated as follows.
Taxable amount = 500000 - 180000 = 320000.
Tax @ 10% = 32000 -(1)
Cess @ 3% on Tax = 32000x3% = 960 - (2)
Total Tax = (1)+(2) = 32960.
For 600000, the Tax calculation is as follows.
Taxable amount = 600000-180000 = 420000.
Tax @ 10% = 320000x10% = 32000 -(1)
Tax@ 20% = 600000-500000 = 100000x20% = 20000 -(2)
Total = (1)+(2) = 52000 -(3)
Cess 3% = 52000 x 3% = 1560 - (4)
Total Tax incl. Cess = (3)+(4) = 53560.
Bhupinder Sharma is this side. Can you do me a favor.
In 2010, I had filed my IT return thru online but due to incorrect address (mentioned in IT return) the cheque has been returned and I don't what is procedure for correction of address for online changes.
Requested you if you know, please share so that I may start correspondence with them.
If you shift your present job to a new company in the mid financial year then you have to add the both salaries together(i.e your previous earnings from the earlier company+the earnings from the new company) and then you have to calculate the payable tax.
Say, if your total income stands roughly about Rs-500000/- by adding both the salaries, then in the coming financial year(2012-13),you have to deduct first the Professional tax and then U/S 10/13(A) for residing in a rented house and then Rs-200000/- as it is exempted from giving Income Tax, then deduct your savings U/S 80C upto Rs-100000/- & 80D upto Rs-15000/- and you will get the taxable income amount(As the amount is much lower than Rs 500000/-)you will fall in the 10% tax bracket, So calculate the amount as 10% of that.As from this FY there will be no Education Cess, the calculated amount will be final amount.
Hope you have got a priliminary idea regarding it.