Tax calculation for ELSS mutual funds
|
Income (Rs)
|
Tax Rates
|
|
Up to Rs1,60,000
|
Nil
|
|
1,60,001 to 5,00,000
|
10%
|
|
5,00,001 to 8,00,000
|
20%
|
|
Above 8,00,000
|
30%
|
|
Case I: An investor with Gross income of Rs500000/-, invests Rs100000/- in ELSS.
|
|
|
Particulars
|
(Rs)
|
|
Gross Income
|
500000
|
|
Less: Tax benefit u/s 80C (ELSS)
|
100000
|
|
|
400000
|
|
Less:Income Exempt from Tax as per slabs
|
160000
|
|
Taxable Amount
|
240000
|
|
Tax Liability
|
|
|
Tax Rate applicable @10% (10% of 240000)
|
24000
|
|
Education cess @3% (3% of 24000)
|
720
|
|
Tax payable
|
24720
|
|
Case II: Investor does not invest in ELSS
|
|
|
Particulars
|
(Rs)
|
|
Gross Income
|
500000
|
|
Less:Income Exempt from Tax as per slabs
|
160000
|
|
Taxable Amount
|
340000
|
|
Tax Liability
|
|
|
Tax Rate applicable @10% (10% of 340000)
|
34000
|
|
Education cess @3% (3% of 34000)
|
1020
|
|
Tax payable
|
35020
|
Visitors who read this article also read:
|
Was this article useful? Subscribe to our newsletter to get daily updates in your email for free. |
|
|
Related posts:
8 Legal Tax Saving secrets
What is coming in Direct Tax Code
How to use high inflation to save your taxes?
What is Wealth Tax?
Give gift and save tax
Problems associated with HUF
How to claim tax exemption on your HRA?
Do you really get benefit of tax filing exemption of Rs 5 lakh?
