TAX LIABILITY | INCOME TAX | OU | SEMESTER-4 | COMPLETE CONCEPT EXPLAINATION | @shivanipallela

Added: 2026-05-25

[00:00:00]Hello students, welcome back to our channel. So, in this video we will discuss the calculation of tax liability. Which this tax liability is important for chapter one, chapter two, and chapter five. Sometimes in capital gains also in the question they will ask calculate tax liability. And in chapter second, that is income from salaries also they will ask calculate the tax liability. Seema, when you want to calculate tax liability there are three sector there are three set of groups are there. One is non-senior citizen, second one is senior citizen, third one is super senior. If a person is resident and he is a non-senior means a person is having below less than age of 60 years. Means if he is a person he or she is a person of below 60 years, then the person is considered as a non-senior citizen. If a person is above 60 to 80 years means he is considered he or she is considered as a senior citizen. Okay? Seema, so there are non-senior, senior, super senior. Okay? So, non-senior means zero to 60 years, seniors means 60 to 80 years, and super senior means above 80 years. Okay? 80 years above if a person is having means he or she is considered as a super senior. Okay? So, and one more thing I want to tell you all that is if a person if a person is earning if a person is earning above 50 lakhs. If the person is earning above 50 lakhs, then he or she need to pay surcharge extra surcharge 10%. This is fixed. When you will do this 10% means when a person is earning above 50 lakhs then there will be a rebate ma'am. Rebate is 12,500.

[00:02:06]When you will use this 12,500 means minus we need to do it. Surcharge is plus. This is minus. When we will do minus means if a person is earning below 5 lakh rupee if a person is earning below 5 lakh rupee means the person should get a reimbursement of that is rebate of 12,500. That is nothing about like discount type of thing ma'am. Okay? And coming back to the tax liability if a person is a non-senior citizen up to 2 lakh 50,000 there is no need to pay tax to the government. If the person is earning 2 lakh 50,000 below 2 lakh 50,000 means no need to pay tax to the government. Zero.

[00:02:50]From 2 lakh 50,001 rupee to 5 lakh rupee if the person is earning means we need to take 5%.

[00:02:58]So need to take it ma'am. If a person is earning 5 lakh 1 rupee to 10 lakh means we need to take 20%.

[00:03:09]That is 0.2. If a person is earning 10 lakh above means 10 lakh 1 rupee and above means we need to take 30% default.

[00:03:18]For non-senior 5%, 20%, and 30%. Up to 2 lakh 50,000 is exempted. For senior citizenship up to 3 lakh rupees exempted. Up to 3 lakh if a person is earning means zero tax. Okay? From 3 lakh 1 rupee to 5 lakh if a person is earning means 5% we need to take it. How much? 5%. Next if sorry, not 5% we need to take the 50%. Okay? If a person is earning 5 lakh 1 rupee to 10 lakh means we we to take the 20%. If the person is earning about 10 lakh means we need to take the 30%.

[00:03:57]So, 50% 20% 30%. 5% 20% and 30%. So, this is the percentages. That's the the things you need to remember it, ma.

[00:04:08]Okay? Next you are having super senior.

[00:04:10]How come a super senior up to 5 lakh rupee the tax is zero. Okay? No need to pay tax to the government. But, above 5 lakh 1 rupee to 10 lakh means he need to pay 20% of the salary, 20% of the tax.

[00:04:26]Okay? If the person is having about 10 lakh means 30% they need to pay tax to the government. So, this is the tax percentages according to the Income Tax Act 1961.

[00:04:39]When you remember this percentages calculation means then only we can able to do the tax liability. If in the question that if they didn't mention the name means we If they didn't mention the name Sorry, if they didn't mention the age means we need to consider that as a non-senior citizen only. Okay? If age is not given means we need to consider his or her as a non-senior citizen. So, according to the non-senior citizen what are the percentages you are having that you need to take it. And in every tax liability question, ma, health and education cess 4% we need to add it.

[00:05:20]That is default.

[00:05:22]4% is default. Health and education cess is also default. So, now let's do the problematic question. See this problematic question, ma.

[00:05:31]Calculate tax liability of Mr. Mr. Durga whose status is resident and ordinary resident for the previous year. She's earning 5 lakh 7,000 rupees. So, they're asking you to calculate the tax liability of Durga. So, how much Durga is earning in an year? 5 lakh 7 rupee 5 lakh 7,000 rupees. So, in the question, ma, they didn't give the Sorry, in the question, they didn't give the age of Miss Durga. Okay? They didn't give the age. So, we need to consider her as a non-senior.

[00:06:11]Okay? What is the income total income is 5 lakh 7,000 rupees. In that, if the person is a non-senior, what I have said? 2 lakh 50,000 is the excluded amount.

[00:06:25]Sorry.

[00:06:29]2 lakh 50,000 is the excluded amount means to up to 2 lakh 50,000 no need to pay tax to the government.

[00:06:39]So, from 5 lakh 7,000 rupees from 5 lakh 7,000, if you deduct 2 lakh 50,000, how much you will get? 2 lakh 57,000 you will get. But, for this 2 lakh 57,000, they need to pay tax to the No, they tax to the government, no? That is nothing about 2 lakh 50,000 1 to 5 lakh rupees, how much is the percentage of the tax?

[00:07:05]5% Yes, in the just now we have discussed in the table, no? So, out of 5 lakh rupees, ma, already 2 lakh 50,000 is exempted. Remaining how much is left over? 2 lakh 50 only is left over, no? So, 2 lakh 50,000 into 5% if you will do means how much you will get? 12,500 you will get. Yes? So, out of 5 lakh 7,000 rupees, up to 2 lakh 50,000 no no no tax. But, after 2 lakh 50,000 1 rupee to 5 lakh, again you will get 2 lakh only, no? for that we need to pay 5% tax to the government. Next uh Up to 5 lakhs here over, 2 lakh 50 here over, 2 lakh 50 here over. 5 5 lakhs is over. Still how much is there? 7,000 is there. So, that means 5 lakh 1 rupee Sorry. 5 lakh 1 rupee to 10 lakhs How much is the percentage, ma? It is 20% as we have discussed in the table.

[00:08:11]So, how much is the difference after 5 lakhs if you deduct means 7,000. So, 7,000 into 20% if you'll do means how much you'll get? 1,400 you will get. So, rebate will be nil only. Why? Because the person is not earning below 5 lakhs.

[00:08:27]Above 5 lakhs only she's earning. So, rebate will become zero. Surcharge also we should not take it. Why we should not take it surcharge? What I have said? If the person is earning above 50 lakhs, then only you need to take the surcharge. But here only she's earning 5 lakhs only, no? So, no need to take the surcharge also. But health and education cess compulsory you need to take 4%. So, health and education cess 4%.

[00:08:54]So, how you will do?

[00:08:57]>> [clears throat] >> How you will do means?

[00:09:01]What is the tax here? 12,500 plus 1,400. How much you'll get? 13,900.

[00:09:10]For this 13,900 in every tax liability question you need to take 4% health and education cess. So, 13,900 into 4% if I do means how much I'll get?

[00:09:23]556 I'll get. Okay? So, we need to add it to the last thing. So, 556 plus 13,900 if I'll do means I'll get 14,459.

[00:09:39]So, this is the tax liability. So, this is the question of four marks. Sometimes they will ask it for the uh long questions also. So, I hope that you have got clarity. Like this you need to calculate it, ma. So, one question I will give you homework. Just make sure you learn that. Compute the tax liability of a senior citizen. Senior citizenship up to 3 lakh rupee, it is exempted. 3 lakh 1 rupee to 5 lakhs, it is 5%. 5 lakh 1 rupee to 10 lakh, it is 20%. Above 10 lakhs is nothing above 30%. So, how much he's earning? 12 lakh 50,000 only. Because rebate will be not be there because he is not earning below 5 lakhs. Surcharge also will be not be there. Why? Because he's not earning above 50 lakhs. He's earning in a 12 lakh 50,000 only. Yes? So, according to this non-senior citizen, you need to calculate the tax liability. So, this is your homework. Final answer you should get 1 lakh 92,400.

[00:10:42]Okay? Just do the question and make sure you tell me the answer in the comment box. So, this is about the tax liability, ma. I hope that you have got clarity. When you understand the table, automatically you will understand the tax liability calculation also because percentages is important, the tax regime is important. So, surcharge, health and education cess, the rebate, this type of things is useful and important for the four marks also. Okay? So, all the very best for your examination and preparation. If you having any further doubts, let me know in the comment section. All the very best. See you all in the next video. Bye-bye, students.