Page 14 - HDFC Bank TPP Flipbook

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
Income Tax (i) 1,12,500

Educational Cess @ 4% on (ii) 4,500
Total Tax Liability [(i)+(ii)] 1,17,000 (C)
Total Tax Savings (A-C) r 70,200
Scenario 3:
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 1,00,000
[Self (if senior citizen)(r 50,000) and Parents Senior Citizens (r 50,000)]

D) Taxable Income after investment = r 12.25 lakhs – r (1.50 + 1) lakhs
= r 9.75 lakhs
Tax payable on r 9,75,000
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 4,75,000 20% 95,000

Income Tax (i) 1,07,500
Educational Cess @ 4% on (ii) 4,300
Total Tax Liability [(i)+(ii)] 1,11,800 (D)

Total Tax Savings (A-D) r 75,400

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