Compute the Total Income and Tax Liability of Mr. X for A.Y. 2024-25 (Old Regime)
Given:
Mr. X, aged 60 years, is a professor. We will compute his total income and tax liability under the Old Tax Regime based on the given details.
1. Income from Salary
- Salary: ₹6,00,000
- Dearness Allowance (DA): ₹3,00,000
- Wardenship Allowance: ₹18,000
Total Salary Income = ₹9,18,000
2. Income from Other Sources
- Examinership Remuneration: ₹85,400
- Royalty from artistic books: ₹2,73,000
- Income from card games: ₹16,400
- Winnings from lottery (fully taxable @30%): ₹30,000
- Interest on savings bank: ₹17,000
- Interest on term deposit: ₹1,00,000
Total Other Income = ₹5,21,800
Gross Total Income
₹9,18,000 (Salary) + ₹5,21,800 (Other Sources) = ₹14,39,800
3. Deductions under Chapter VI-A
- Section 80C: Provident Fund = ₹1,22,000 (max limit ₹1,50,000)
- Life Insurance Premium: ₹30,000
- Total 80C = ₹1,50,000 (Maximum allowed)
- Section 80TTA: Interest on savings account = ₹10,000 (limit)
Total Deductions = ₹1,60,000
4. Net Taxable Income
Gross Total Income – Deductions = ₹14,39,800 – ₹1,60,000 = ₹12,79,800
5. Tax Calculation (Old Regime for Senior Citizen – 60 years)
- Up to ₹3,00,000 – Nil
- ₹3,00,001 to ₹5,00,000 @5% = ₹10,000
- ₹5,00,001 to ₹10,00,000 @20% = ₹1,00,000
- ₹10,00,001 to ₹12,79,800 @30% = ₹83,940
Normal Income Tax = ₹1,93,940
Add: Tax on Lottery Winnings
- 30% of ₹30,000 = ₹9,000
Total Tax Before Cess = ₹2,02,940
6. Health & Education Cess @4%
4% of ₹2,02,940 = ₹8,117.60
7. Total Tax Payable
₹2,02,940 + ₹8,118 = ₹2,11,058 (Rounded off to ₹2,11,060)
Conclusion:
- Total Income: ₹12,79,800
- Tax Liability: ₹2,11,060
This is the total tax payable by Mr. X under the Old Tax Regime for A.Y. 2024–25.