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.

One thought on “Calculation of Income Tax Liability 2011-12

  1. Heya.
    I’m at work surfing around your blog from my iphone 4S! Just wanted to say I love reading through your blog and look forward to all your posts!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s