Income tax plays a crucial role in the financial framework of any country. In India, the government collects income tax from individuals, Hindu Undivided Families, firms, companies, associations, and other entities to generate revenue for public services, infrastructure, and development projects. The system of income tax is not just about revenue collection but also about encouraging savings and investments by offering deductions and exemptions.
For a taxpayer, the first step towards compliance is understanding how income is classified and how liability is determined. With the introduction of structured slabs, individuals pay tax in a progressive manner where higher income attracts higher rates. This system ensures that the burden is distributed according to earning capacity. We will explore the basic concept of income tax in India, its classification under different heads, the idea of gross total income and total income, and why slabs are important for taxpayers.
Concept of Income Tax in India
Income tax is a direct tax that is levied on the income of a person. The Income-tax Act, 1961 governs all provisions related to its levy, collection, and administration. Every individual or entity earning income within a financial year is liable to pay tax on the income earned, subject to the exemptions and deductions available under the law.
The law defines the word person in a broad manner. It includes individuals, Hindu Undivided Families, companies, firms, associations of persons, bodies of individuals, and any other artificial juridical person. Each category has different applicable rates and methods of computation. For individuals, the slab system is the most relevant, as it determines how much tax needs to be paid on different levels of income.
The government often revises slab rates in order to provide relief to small taxpayers, bring parity in taxation, and adjust for inflation. For the assessment year 2019-20, these slabs are clearly laid down, and understanding them is essential for every taxpayer.
The Five Heads of Income
The Income-tax Act classifies income under five major heads. This classification helps in computing income systematically and ensuring that each type of income is treated appropriately for taxation purposes.
Salary
Any compensation received by an individual from an employer is considered salary income. This includes basic salary, allowances, perquisites, bonuses, commissions, and retirement benefits. Certain allowances like house rent allowance or leave travel allowance may be exempt either fully or partially, subject to conditions. Salary income is one of the most common sources for taxpayers and is taxed on the basis of accrual or receipt, whichever occurs first.
Income from House Property
If a person owns a building or land appurtenant thereto, any rental income or deemed rental income is taxed under this head. Even if the property is not let out, notional income may be considered in certain situations, except when it is self-occupied within the permissible limit. Deductions are allowed for municipal taxes paid and standard deduction of 30 percent on net annual value. Interest on borrowed capital for construction or acquisition is also deductible within specified limits.
Profits and Gains from Business or Profession
Any income earned by carrying out business activities or providing professional services is taxed under this head. This includes profits, fees, and any benefits received in the course of business. Expenses incurred wholly and exclusively for the business are deductible. Business income computation is detailed and involves adjustments for depreciation, disallowed expenses, and presumptive taxation in certain cases.
Capital Gains
When a person sells a capital asset like land, building, shares, or bonds, the profit earned is categorized as capital gains. Depending on the holding period, capital gains are classified as short-term or long-term, each with different tax rates. For example, long-term gains on listed equity shares beyond a specified exemption threshold are taxed at concessional rates. Certain exemptions are also available if the proceeds are reinvested in specified assets.
Income from Other Sources
Any income not falling under the above heads is taxed here. Common examples include interest on savings accounts, fixed deposits, dividends, winnings from lotteries, or gifts received beyond a specified limit. Though it is a residual head, it plays an important role in ensuring that no income escapes taxation.
Gross Total Income and Total Income
Once income under all five heads is computed, the next step is to aggregate them. The result is called Gross Total Income or GTI. From the GTI, taxpayers are allowed to claim various deductions under Chapter VI-A of the Income-tax Act. These deductions encourage savings and investments in schemes such as life insurance premiums, provident funds, tuition fees, medical insurance, donations, and more.
The balance after claiming these deductions is known as Total Income. This is the amount on which tax is actually calculated. Thus, GTI represents the sum of earnings, while Total Income represents the taxable base after deductions.
Normal Income and Special Income
Not all income is taxed in the same manner. Total income is bifurcated into normal income and special income.
Normal income refers to earnings like salary or business income, which are taxed as per the regular slab rates applicable to individuals. Special income refers to categories such as capital gains or winnings from lotteries, which are taxed at specified rates irrespective of slab rates. For instance, short-term capital gains on equity shares are taxed at 15 percent, while long-term capital gains on equity beyond the exemption limit are taxed at 10 percent.
This distinction is important because taxpayers must calculate tax separately on both categories and then combine them to arrive at the total liability.
Importance of Income Tax Slabs
The concept of tax slabs ensures progressive taxation, meaning individuals with higher incomes pay proportionately higher taxes. This system is designed to achieve fairness by not burdening small taxpayers excessively while ensuring that wealthier sections contribute more.
For the assessment year 2019-20, different slabs were notified for individuals below 60 years, resident senior citizens aged 60 to below 80 years, and resident super senior citizens aged 80 years or above. These slabs offer higher exemption limits for older taxpayers in recognition of their reduced earning capacity and higher medical needs.
Historical Perspective on Slabs
Income tax slabs have undergone many changes over the years. In earlier decades, tax rates were extremely high, sometimes crossing 90 percent for the highest bracket. Over time, with economic reforms, the rates were rationalized to encourage compliance and reduce tax evasion.
By the assessment year 2019-20, slabs were structured in a way to provide relief to small and middle-class taxpayers, while maintaining equity in distribution. The rebate under section 87A was also introduced to benefit individuals with lower taxable incomes.
Practical Example: Calculating Gross Total Income
Consider an individual earning a salary of 7,20,000 per year. He also receives rental income of 1,20,000 from a property. He has invested in life insurance and provident fund contributions eligible for deduction of 1,50,000 under section 80C. Additionally, he pays 20,000 as medical insurance premium eligible under section 80D.
Step 1: Salary income = 7,20,000
Step 2: Income from house property = 1,20,000
Step 3: Gross Total Income = 8,40,000
Step 4: Less deductions under 80C = 1,50,000
Step 5: Less deduction under 80D = 20,000
Step 6: Total Income = 6,70,000
Now, this total income of 6,70,000 becomes the basis for computing tax liability using slab rates. Since it falls in the range of 5,00,000 to 10,00,000, part of it will be taxed at 20 percent, while the lower portion will be taxed at 5 percent. This demonstrates how slab rates are applied progressively.
The Relevance of Section 87A
For the assessment year 2019-20, section 87A provided that a resident individual with taxable income up to 3,50,000 was entitled to a rebate equal to 100 percent of income tax or 2,500, whichever was lower. This rebate was meant to provide relief to small taxpayers.
For the following assessment year 2020-21, this limit was increased significantly to 5,00,000 with a rebate amount of up to 12,500, offering wider relief to the middle-income group. While the slab structure remained the same, this change in rebate altered the final liability for many individuals.
Slabs for Different Categories of Individuals
For individuals below 60 years of age, the basic exemption limit was 2,50,000. Income between 2,50,000 and 5,00,000 was taxed at 5 percent, between 5,00,000 and 10,00,000 at 20 percent, and above 10,00,000 at 30 percent.
For resident senior citizens aged 60 years or more but less than 80 years, the exemption limit was 3,00,000, followed by similar progressive rates.
For resident super senior citizens aged 80 years or above, the exemption limit was higher at 5,00,000, with subsequent slabs similar to other categories.
This differential treatment recognizes the principle of equity and ensures that older taxpayers have more disposable income after meeting essential expenses.
Illustrative Example of Slab Application
Let us take another case of a senior citizen with a total income of 5,40,000.
Step 1: Up to 3,00,000 – No tax
Step 2: Next 2,00,000 (3,00,001 to 5,00,000) – 5 percent = 10,000
Step 3: Remaining 40,000 (5,00,001 to 5,40,000) – 20 percent = 8,000
Step 4: Total before cess = 18,000
Step 5: Add health and education cess at 4 percent = 720
Step 6: Total liability = 18,720
This example demonstrates how slab rates combined with cess are applied to arrive at final liability.
Slab System for Individuals Below 60 Years
For individuals below 60 years of age, Hindu Undivided Families (HUF), Association of Persons (AOP), Body of Individuals (BOI), and Artificial Juridical Persons (AJP), the slabs for AY 2019-20 were as follows:
- Income up to 2,50,000 – Nil
- Income from 2,50,001 to 5,00,000 – 5 percent
- Income from 5,00,001 to 10,00,000 – 20 percent
- Income above 10,00,000 – 30 percent
This progressive structure ensures that taxpayers with lower incomes pay either no tax or a smaller portion compared to high earners.
Slab System for Resident Senior Citizens
Resident senior citizens, defined as individuals aged 60 years or above but below 80 years at any time during the previous year, enjoy a higher exemption limit. For AY 2019-20, the slabs were:
- Income up to 3,00,000 – Nil
- Income from 3,00,001 to 5,00,000 – 5 percent
- Income from 5,00,001 to 10,00,000 – 20 percent
- Income above 10,00,000 – 30 percent
By providing an additional exemption of 50,000, the system recognizes reduced earning capacity during retirement and higher medical or essential expenses faced by senior citizens.
Slab System for Resident Super Senior Citizens
Resident super senior citizens, aged 80 years or above, enjoy the most beneficial treatment. For them, the slabs for AY 2019-20 were:
- Income up to 5,00,000 – Nil
- Income from 5,00,001 to 10,00,000 – 20 percent
- Income above 10,00,000 – 30 percent
This means a super senior citizen could earn up to 5,00,000 without any tax liability, which provided substantial relief to this category of taxpayers.
Additional Levy of Health and Education Cess
In addition to income tax, every individual is liable to pay health and education cess. For AY 2019-20, this cess was levied at 4 percent of the income tax, including surcharge wherever applicable. The purpose of this cess is to fund government expenditure on education and healthcare initiatives.
Surcharge on Higher Incomes
For taxpayers with higher income levels, surcharge is an additional levy over and above normal tax. For AY 2019-20, surcharge was levied as follows:
- 10 percent of income tax if total income exceeded 50 lakh but did not exceed 1 crore
- 15 percent of income tax if total income exceeded 1 crore
This ensures that ultra-high-income individuals contribute more to the exchequer.
Section 87A Rebate for AY 2019-20
Section 87A provides relief to small taxpayers by offering a rebate on the tax payable. For AY 2019-20, a resident individual whose taxable income did not exceed 3,50,000 was entitled to a rebate of up to 2,500. This rebate was deducted from the total tax liability after applying slab rates, surcharge, and cess.
For instance, an individual with taxable income of 3,20,000 would have a tax liability of 3,500 before cess, but since the rebate is available up to 2,500, the final tax payable would be reduced significantly.
Illustrative Example: Individual Below 60 Years
Consider a taxpayer aged 35 years with taxable income of 7,20,000 for AY 2019-20.
Step 1: Income up to 2,50,000 – Nil
Step 2: Next 2,50,000 (2,50,001 to 5,00,000) – 5 percent = 12,500
Step 3: Remaining 2,20,000 (5,00,001 to 7,20,000) – 20 percent = 44,000
Step 4: Total income tax = 56,500
Step 5: Add health and education cess at 4 percent = 2,260
Step 6: Gross tax liability = 58,760
The taxpayer must pay 58,760 as tax liability, unless eligible for any rebate under section 87A, which in this case does not apply as taxable income exceeds 3,50,000.
Illustrative Example: Resident Senior Citizen
Let us assume a senior citizen aged 65 years with taxable income of 4,80,000.
Step 1: Income up to 3,00,000 – Nil
Step 2: Remaining 1,80,000 (3,00,001 to 4,80,000) – 5 percent = 9,000
Step 3: Total before cess = 9,000
Step 4: Add cess at 4 percent = 360
Step 5: Gross tax liability = 9,360
Since taxable income is below 3,50,000, this senior citizen is eligible for rebate under section 87A up to 2,500, reducing the liability accordingly.
Illustrative Example: Resident Super Senior Citizen
Now consider a super senior citizen aged 82 years with taxable income of 5,40,000.
Step 1: Income up to 5,00,000 – Nil
Step 2: Remaining 40,000 (5,00,001 to 5,40,000) – 20 percent = 8,000
Step 3: Add cess at 4 percent = 320
Step 4: Gross liability = 8,320
This person will not get the benefit of rebate under section 87A since taxable income exceeds 3,50,000.
Impact of Deductions on Slab Application
Deductions under Chapter VI-A significantly impact the slab applicable to an individual. For instance, a person with gross total income of 5,80,000 who invests 1,50,000 in eligible schemes under section 80C brings taxable income down to 4,30,000.
As a result, this individual not only falls in a lower slab but may also become eligible for rebate under section 87A, thereby reducing or eliminating tax liability. Thus, smart tax planning through investments can make a huge difference in reducing payable tax.
Special Rate Income in AY 2019-20
Certain types of income are taxed at special rates, irrespective of slab applicability. Examples include:
- Short-term capital gains on equity shares where securities transaction tax is paid – 15 percent
- Long-term capital gains on equity shares above 1 lakh – 10 percent without indexation
- Winnings from lotteries, game shows, crossword puzzles, or horse races – 30 percent flat
- Long-term capital gains on assets like property or gold – 20 percent with indexation
These incomes are computed separately and added to normal tax liability to arrive at the total payable amount.
Composite Example Combining Slab and Special Income
Suppose a 40-year-old individual has a salary income of 8,00,000 and long-term capital gain on property of 1,50,000.
Step 1: Salary income after deductions = 8,00,000
Step 2: Tax on salary using slab system:
- Up to 2,50,000 – Nil
- 2,50,001 to 5,00,000 – 5 percent = 12,500
- 5,00,001 to 8,00,000 – 20 percent of 3,00,000 = 60,000
Tax on salary = 72,500
Step 3: Long-term capital gain taxed at 20 percent = 30,000
Step 4: Total before cess = 1,02,500
Step 5: Add cess at 4 percent = 4,100
Step 6: Final liability = 1,06,600
This example demonstrates how normal and special income are taxed separately but contribute to one aggregate liability.
Relief Measures for Taxpayers
Apart from rebates and higher exemption limits, the law also provides relief under sections such as 89 for arrears of salary and 90/91 for foreign tax credits. These provisions prevent double taxation and ensure fairness in computation.
Tax Planning Strategies
For AY 2019-20, taxpayers could reduce their liability through a number of strategies:
- Investing in Public Provident Fund, National Savings Certificates, or life insurance premiums under section 80C
- Paying for health insurance under section 80D
- Claiming interest on education loans under section 80E
- Donating to eligible charitable institutions under section 80G
- Opting for home loans to claim interest deductions under section 24(b)
By utilizing these options, individuals could lower taxable income, reduce effective tax liability, and sometimes fall into a lower slab.
Comparing Liability Across Age Groups
If three individuals with the same income of 6,00,000 belong to different age categories, the tax payable varies:
- Individual below 60 years: Tax = 32,240 after cess
- Senior citizen: Tax = 28,080 after cess
- Super senior citizen: Tax = 4,160 after cess
This comparison highlights the favorable treatment accorded to older taxpayers in India’s slab system.
Computation of Income Tax for Assessment Year 2019-20
We move towards the detailed process of computing tax liability for an individual or a Hindu Undivided Family for the assessment year 2019-20. This involves applying slab rates to normal income, calculating tax on special income, adjusting for rebates and reliefs, and incorporating cess, surcharge, and advance payments to arrive at the final amount payable or refundable.
The process can appear complicated at first, but when broken down into logical steps, it becomes easier to follow. A systematic approach ensures that no element is missed, and tax is computed accurately.
Step 1: Determination of Gross Total Income
The first step in the computation process is calculating Gross Total Income. This is done by aggregating income under all five heads of the Income-tax Act:
- Income from Salary
- Income from House Property
- Profits and Gains from Business or Profession
- Capital Gains
- Income from Other Sources
Any losses that are permitted to be set off under the law are adjusted while arriving at Gross Total Income. For instance, a loss from house property can be set off against salary income up to a prescribed limit.
Step 2: Deductions under Chapter VI-A
Once Gross Total Income is computed, eligible deductions under Chapter VI-A are subtracted to determine the Total Income. These deductions include:
- Section 80C: Investments in schemes like Public Provident Fund, Employee Provident Fund, life insurance premiums, equity-linked savings schemes, and repayment of housing loan principal up to 1,50,000.
- Section 80D: Health insurance premium and preventive health check-up costs.
- Section 80E: Interest on loans taken for higher education.
- Section 80G: Donations made to specified institutions and relief funds.
- Section 80TTA: Interest on savings accounts for individuals and HUFs, up to 10,000.
After deductions, the result is the Total Income which forms the basis for tax computation.
Step 3: Application of Slab Rates on Normal Income
Total Income is divided into normal income and special income. Normal income is taxed according to slab rates applicable for the assessment year 2019-20, which vary depending on the age of the taxpayer.
Special incomes, such as capital gains or winnings from lotteries, are charged at different fixed rates. The slab rates ensure progressive taxation. By applying these slabs step by step, the tax on normal income is calculated.
Step 4: Tax on Special Rate Income
Income such as short-term capital gains on equity shares, long-term capital gains, or winnings from lotteries are not taxed at slab rates. They are subject to special rates as follows:
- Short-term capital gains on equity shares where securities transaction tax is paid – 15 percent
- Long-term capital gains on equity shares above 1 lakh – 10 percent without indexation
- Long-term capital gains on assets like property and gold – 20 percent with indexation
- Winnings from lotteries, crossword puzzles, or horse races – 30 percent
These amounts are computed separately and added to tax computed on normal income.
Step 5: Rebate under Section 87A
For assessment year 2019-20, resident individuals with taxable income not exceeding 3,50,000 are entitled to a rebate under section 87A. The rebate amount is the lower of 100 percent of the income tax or 2,500. This rebate reduces the final tax liability. However, individuals whose income exceeds 3,50,000 are not eligible for this relief.
Step 6: Incorporating Surcharge
If the total income of a taxpayer exceeds 50 lakh, surcharge becomes applicable. The surcharge is levied at 10 percent of income tax for income above 50 lakh but up to 1 crore, and 15 percent for income above 1 crore. This ensures that individuals with significantly higher income contribute proportionately more towards government revenue.
Step 7: Addition of Health and Education Cess
On the tax liability after including surcharge, health and education cess is levied at 4 percent. This is a mandatory addition and applies to every taxpayer. The cess contributes to education and healthcare projects at the national level.
Step 8: Adjustment of Reliefs
Certain provisions of the law grant relief to avoid double taxation or to provide fairness in the computation process. Some key reliefs include:
- Section 89: Relief for salary received in arrears or advance.
- Section 86: Special relief in cases where income is partly exempt.
- Sections 90, 90A, and 91: Relief for foreign taxes paid, either through agreements with other countries or unilateral relief provided by domestic law.
After considering such reliefs, the net tax liability is derived.
Step 9: Interest Liability under Sections 234A, 234B, 234C
If a taxpayer delays in filing the return or paying advance tax, interest becomes payable:
- Section 234A: For delay in filing return of income.
- Section 234B: For default in payment of advance tax.
- Section 234C: For deferment of advance tax installments.
These interests increase the overall liability and act as a deterrent for non-compliance.
Step 10: Reducing Prepaid Taxes and Credits
Finally, taxes already paid in the form of Tax Deducted at Source (TDS), Tax Collected at Source (TCS), advance tax payments, and self-assessment tax are adjusted against the gross liability. If the total prepaid taxes are higher than the computed liability, the taxpayer becomes eligible for a refund. If the prepaid taxes are lower, the balance has to be paid before filing the return.
Comprehensive Computation Example
Let us consider an example of an individual aged 40 years with the following details:
- Salary income: 9,20,000
- Interest from savings bank account: 12,000
- Long-term capital gain on property: 2,50,000
- Deduction under section 80C: 1,50,000
- Deduction under section 80D: 25,000
Step 1: Gross Total Income = 9,20,000 + 12,000 + 2,50,000 = 11,82,000
Step 2: Deductions = 1,50,000 + 25,000 = 1,75,000
Step 3: Total Income = 10,07,000
Normal income = 7,57,000 (9,20,000 + 12,000 – 1,75,000)
Special income = 2,50,000 (long-term capital gain)
Tax on normal income:
- Up to 2,50,000 – Nil
- 2,50,001 to 5,00,000 – 5 percent = 12,500
- 5,00,001 to 7,57,000 – 20 percent of 2,57,000 = 51,400
Total = 63,900
Tax on special income = 20 percent of 2,50,000 = 50,000
Total tax = 1,13,900
Add cess at 4 percent = 4,556
Final tax liability = 1,18,456
If the individual had already paid advance tax of 1,00,000 and TDS of 10,000, then:
Total prepaid = 1,10,000
Balance payable = 8,456
This illustrates the complete chain of tax computation for AY 2019-20.
Special Considerations for Agricultural Income
While agricultural income is exempt from tax, it plays a role in computing tax when non-agricultural income exceeds the basic exemption limit. In such cases, agricultural income is added to non-agricultural income to determine the rate at which non-agricultural income is taxed. This mechanism is known as partial integration.
Set-off and Carry Forward of Losses
Another important aspect of tax computation is handling losses. Business losses, capital losses, or losses from house property may be set off against other incomes. If not fully absorbed in the current year, they can be carried forward to subsequent years subject to conditions. This reduces tax liability in future years and provides relief to taxpayers who face cyclical income fluctuations.
Importance of Accurate Computation
A small error in tax computation can lead to additional liability, penalties, or even litigation. Therefore, it is important to follow each step carefully, apply the correct slab rates, consider all deductions, and cross-check prepaid taxes. With the increasing use of digital tools, tax filing has become easier, but human oversight is still essential to ensure accuracy.
Case of Refund Situations
When prepaid taxes such as TDS, TCS, and advance tax exceed the final liability, the taxpayer becomes eligible for a refund. For example, if a salaried employee had TDS deducted on salary amounting to 60,000, but the final liability after deductions and slab application is 45,000, the individual is entitled to a refund of 15,000. This refund is generally processed electronically after filing the return.
Case of Additional Payment
On the other hand, if the final liability is more than the taxes already paid, the taxpayer must pay the balance as self-assessment tax before filing the return. Any failure to pay may result in interest charges and penalties. For instance, if the final liability is 90,000 but prepaid taxes total only 70,000, the taxpayer must pay the remaining 20,000 to settle the liability.
Tax Compliance and Timelines
The computation of tax is closely linked to compliance with timelines. Filing returns on time, paying advance tax in correct installments, and maintaining proper documentation are essential for avoiding additional charges. The due date for filing returns for individuals not subject to audit is usually 31st July of the assessment year, unless extended by notification.
Adjustments for Foreign Tax Credit
In an increasingly globalized economy, individuals often earn income from outside India. If foreign taxes are paid on such income, relief can be claimed under sections 90, 90A, or 91. This prevents double taxation and ensures fairness. The relief is available either through bilateral agreements with specific countries or as unilateral relief provided by Indian law.
Role of TDS and TCS in Final Computation
Tax Deducted at Source and Tax Collected at Source play a crucial role in tax collection. Employers deduct tax at source from salary, banks deduct on interest, and sellers collect tax at source on specific transactions. These amounts reduce the burden on taxpayers at the year-end and ensure steady inflow of revenue for the government. During final computation, these amounts are adjusted against liability, reducing the need for lump-sum payments.
Conclusion
The process of understanding and computing income tax for Assessment Year 2019-20 reveals the depth and complexity of the Indian taxation system. Across this exploration, we began by examining the fundamental structure of income, its classification under different heads, and the application of slab rates for individuals, senior citizens, and super senior citizens. We then explored how deductions, exemptions, and rebates shape the final taxable income and ease the burden for eligible taxpayers.
Highlighted the importance of recognizing the distinction between normal income and special income, each taxed under different principles. While slab rates ensure progressive taxation on regular income, special incomes such as capital gains, winnings, and certain investment-related earnings follow specified rates that add precision and fairness to the system.
We pieced together the computation process step by step, starting from gross total income to final tax liability. This included deductions under Chapter VI-A, application of slab rates, calculation of taxes on special incomes, adjustments for rebate under section 87A, surcharge, cess, and reliefs under sections 86, 89, 90, 90A, and 91. We also examined the critical role of advance tax, TDS, TCS, and self-assessment tax in balancing year-end liabilities and how refunds or additional payments emerge depending on the comparison between prepaid taxes and computed liability.
The taxation system is not only about figures and calculations but also about compliance, discipline, and awareness. Filing returns on time, maintaining proper records, understanding reliefs, and planning investments help taxpayers minimize liabilities while staying compliant with the law. For salaried employees, small business owners, or senior citizens, these rules ensure equity by aligning liability with capacity to pay, while higher surcharges and cess extend responsibility to those with greater financial means.
Ultimately, taxation reflects a social contract between individuals and the state. The resources collected through income tax contribute to the nation’s development, infrastructure, healthcare, education, and welfare programs. By understanding how income is taxed and how liabilities are computed, taxpayers not only fulfill a legal duty but also participate in the broader objective of nation-building. Awareness and preparedness are the keys to navigating this yearly certainty with confidence, ensuring that one meets obligations without unnecessary stress and makes full use of the benefits provided under the law.