Calculation of Income Tax Liability 2011-12

6 May    Tax Issue admin
May 6

Calculation of Income Tax Liability 2011-12

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 for the year 2011-12

Now calculate the Tax Liability on taxable income

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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