 Hello and welcome to the session that has discussed the following question. It says, annual income from salary of Mrs. Usha, who is a senior citizen, is Rs. 3,5,000. She donates Rs. 10,000 to Prime Minister's Relief Fund, 100% Exumption, and Rs. 10,000 to the Charitable Society, 50% Exumption. She contributes Rs. 70,000 towards PPF and PENI, and she pays quarterly premium of Rs. 3,500 towards life insurance. She also purchases NSC for Rs. 20,000. She pays Rs. 1,600 per month towards the income tax for 11 months. What is her liability for last month of the financial year? Choose the following for calculating the income tax, and we get 100% exemption for saving up to Rs. 1,000,000. And this is the slap for the rate of income tax for senior citizens. Let's now move on to the solution, and let's see the first step for calculating the income tax. The first step is find the gross income of the SSC. Now the annual income is Rs. 3,85,000. Now the second step is to find the amount of donation if any eligible for reduction. Now the rebate on donations, she donates Rs. 10,000 to Prime Minister's Relief Fund, and gets 100% exemption. She also donates Rs. 10,000 to Charitable Society, and gets 50% exemption is equal to Rs. 10,000 plus 5,000, that is 15,000. Now the third step is find the amount of total savings, maximum up to Rs. 1,000,000. Now we find the savings made by Mrs. Usha. We are given that she contributes Rs. 70,000 towards PPF annually. She pays quarterly premium of Rs. 3,500 towards life insurance, and she also purchases NSE for Rs. 20,000. So the savings are PPF Rs. 70,000 annually. She pays Rs. 3,500 quarterly premium. So the annual premium is Rs. 3,500 into 4, that is 14,000, and she purchases NSE for Rs. 20,000. Rs. 70,000 plus 14,000 plus 20,000 is Rs. 1,400,000. Now the fourth step is subtract the amount, subtract the sum of the amounts obtained in step 2 and 3 from the step 1. So we have to subtract the sum of the amounts obtained in step 2 and 3 from the amount we got in step 1, step 4. The sum of the amounts obtained in second and the third step Rs. 15,000, Rs. 1,400,000. Now we are given that savings can be maximum up to Rs. 1,000,000. So we have to make it Rs. 1,00,000 is Rs. 3,085,000, Rs. 1,15,000 and this is equal to Rs. 50,000. Now we will compute the income tax using this lab and here the taxable income is Rs. 270,000. So the rate of tax will be given by this, that is Rs. 13,000 plus 30% of the amount by which taxable income exceeds Rs. 250,000. So the income tax will be Rs. 13,000 plus 30% of the amount by which Rs. 50,000 would be Rs. 13,000 plus 30% that is Rs. 30,500 into, now the taxable income is Rs. 270,000 minus Rs. 250,000 by which taxable income exceeds Rs. 250,000 is Rs. 270,000 minus Rs. 250,000. So that gives us Rs. 13,000 plus 30% 100 into Rs. 20,000 that gives us Rs. 13,000 plus Rs. 6,000 that is Rs. 19,000. So this is the income tax. Now we also have to find the education says which is 2% of the amount of the taxable. Now the education says equal to amount of taxable. So it is 2% of Rs. 19,000 because taxable is 19,000. So this would be 2 by 100 into 19,000 and that gives us education says as Rs. 380. Now we are given that she pays Rs. 1600 per month towards the income tax for 11 months. But before that we need to find the total taxable which is obtained by adding the education says to the taxable which is Rs. 19,000 plus 380 and that becomes Rs. 19,380. Now tax deducted sources at this TDS for 11 months is given by Rs. 1600 into 11 becomes Rs. 17,600. Now we have to find the taxable for the last financial year. So she has paid Rs. 17,600 for 11 months as income tax and total taxable is Rs. 19,380. So the net payable is Rs. 1,708.