Tax planning for individual

Mr. Karan Mahera a resident individual age 45 years and he is working

in X LTD. Company, his income and expenditure account for the year
ending 2020-21

PARTICULAR AMOUNT AMOUNT

1. Income from salary 1,80,000.00
2. Income from house property
Receive from rent (NAW) 2,00,000.00
Less: Standard deduction U/s 24 60,000.00 1,40,000.00

3. Income from business / profession 3,00,000.00

4. Income from capital gain 50,000.00

5.Income from other sourses

Intrest on saving bank account 8,000.00
intrest on fixed deposit 12,000.00 20,000.00

TOTAL GROSS INCOME 6,90,000.00

Less: Deduction (80C to 80U)
U/s 80 C
LIC premium 1,50,000.00
Tution fee 20,000.00
PPF 12,000.00
1,82,000.00 1,50,000.00
Less: Deduction 80D 15,000.00
Less: Deduction 80TTA 8,000.00

Net Taxable Income 5,17,000.00

Income tax caculation on total income

15,900.00
Less: Rebate U/S 87A -
Add: Health and education CESS @ 4% 636.00
TOTAL INCOME TAX 16,536.00
Less: advance tax 5,000.00
Less: TCS 1,000.00
Less: TDS deducted by deductor 500.00

Net payable 10,036.00

Notes:

1. Standard deduction U/S 24

According to income tax act standard deduction is 30%

=2000000 * 30%
= 60000
2. Mr. karan added income from business / professions Rs. 300000
Because he earns from his seasonal business.

3. Rebate U/S 87A

In this we have not deduct rebate because of his net taxable income is more than
5000000. If his income less than 500000 so rebate and tax will always be 50% 50%.
And U/S 87A he will get 100% rebate.

4. Health and education

= 15900*4%
=636

5. Mr. karan will pay 10036 (Total net payable).