Page 13 - HDFC Bank TPP Flipbook

Scenario 1:
Mr. Ram invested in instruments eligible for deduction under Section 80C amounting to r 1,50,000
[Life Insurance (35,000), Mutual Funds (40,000), 5 Years Fixed Deposit (35,000) and in PPF (40,000)]
B) Taxable Income after investment = Rs 12.25 lakhs – r 1.5 lakhs
= r 10.75 lakhs
Tax payable on r 10,75,000
Tax Slab Amount earned Tax Tax Amount
Up to r 2,50,000 2,50,000 Nil Nil

r 2,50,001 to r 5,00,000 2,50,000 5% 12,500
r 5,00,000 to r 10,00,000 5,00,000 20% 1,00,000
Above r 10,00,000 75,000 30% 22,500
Income Tax (i) 1,35,000
Educational Cess @ 4% on (ii) 5,400

Total Tax Liability [(i)+(ii)] 1,40,400 (B)
Total Tax Savings (A-B) r 46,800
Scenario 2:
Mr. Ram invested in instruments eligible for deduction under Section 80C amounting to r 1,50,000
[Life Insurance (35,000), Mutual Funds (40,000), 5 Years Fixed Deposit (35,000) and in PPF (40,000)]
He further takes Health Plan eligible for deduction under Section 80D amounting to r 75,000
[Self (r 25,000) and Parents Senior Citizens (r 50,000)]
C) Taxable Income after investment = r 12.25 lakhs – r (1.50 + 0.75) lakhs
= r 10 lakhs
Tax payable on r 10,00,000

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