Calculation of Income Tax Liability 2010-11

4 May    Tax Issue admin
May 4

Calculation of Income Tax Liability 2010-11

Case Study

Jaideep is getting a salary of Rs. 800000 p.a. He has bought a health insurance policy for himself and his family and paying a premium of Rs. 10,000. Jaideep is paying Home Loan interest of Rs.40000 and principal of Rs.30000. He has also bought a term insurance of LIC and paying premium of Rs. 20000 and done investment  in Mutual Fund ELSS scheme of Rs.50000.

Now first calculate his Taxable Income

Now calculate the Tax Liability

In this case, Jaideep is doing investments in Mutual Funds and LIC u/s 80C and also paying principal on housing loan so total investment in sec 80 C is Rs.100000. Additionally, he is also taking a deduction for a health insurance policy of Rs.10000 which is coming under section 80D.

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