Income Tax Calculator
Now we will calculate income tax, and see how income tax is calculated, if you see it correctly then you can calculate the tax of any income, whatever your income is, let's start.Here we will see how income tax slabs work, what is the tax rate in both the old slab and the new slab.
Let's understand Income Tax Calculation under the current
tax slabs and new tax slabs (optional) by way of an example. Suman receives a
Basic Salary of Rs 80,000 thousand per
month. HRA of Rs 40,000 per month. Special Allowance of Rs 19,000 per month.
LTA of Rs 18,000 annually. Suman pays a rent of Rs 30,000 and lives in Mumbai. Now Let's see what happens this time.
PPF: 1,00,000
ELSS : 30,000
LIC Premium : 100,000
EPF Suman Contribution = Rs 80,000 *12% *12 = 1,15,200
Maximum Deduction U/S 80C Limit 1,50,000/-
Section 80D: Suman Claim u/s 80D is 8,000
Section 80TTA: Suman Claim u/s 80TTA is 10,000
Suman Salary : 13,38,000
Income from Other Sources : =25,000+45000=70,000
Total Income: 13,38,000+70,000 = 14,08,000
Deductions:
U/s 80C : 1,50,000
U/s 80D : 8,000
U/s 80TTA : 10,000, Total Deduction : 1,68,000
Gross Taxable Income : 12,40,000
Income Tax after relief u/s 87A : 1,84,500
Health and Education Cess : 7,380
Total Tax Liability : 1,91,880
Income from Other Sources : =25,000+45000=70,000
Total Income: 16,86,000+70,000 = 17,56,000
Gross Taxable Income : 17,56,000
Income Tax after relief u/s 87A : 2,64,300
Health and Education Cess : 10,572
Total Tax Liability : 2,74,872
Rs 2,50,000 to Rs 5,00,000 @ 5% Slab
Rs 5,00,000 to Rs 7,50,000 @ 10% Slab
Rs 7,50,000 to Rs 10,00,000 @ 15% Slab
Rs 10,00,000 to Rs 12,50,000 @ 20% Slab
Rs 12,50,000 to Rs 15,00,000 @ 25% Slab
More than Rs Rs 15,00,000 @ 30% Slab
76,800 @ 30% Slab
62,500 @ 25% Slab
50,000 @ 20% Slab
37,500 @ 15% Slab
25,000 @ 10% Slab
12,500 @ 5% Slab
Now let's see what the calculation is after excluding the
deduction / expenses Suman has income from interest from all savings account of
Rs 25,000 and a fixed deposit interest income of Rs 45,000 during the year.
Suman has made some investments to save income tax. PPF investment of Rs
100,000, ELSS purchase of Rs 30,000 during the year. LIC premium of Rs 100,000.
Medical insurance paid of Rs 8,000 per anum. Here are the deductions Suman can
claim under the old tax regime.
PPF: 1,00,000
ELSS : 30,000
LIC Premium : 100,000
EPF Suman Contribution = Rs 80,000 *12% *12 = 1,15,200
Maximum Deduction U/S 80C Limit 1,50,000/-
Section 80D: Suman Claim u/s 80D is 8,000
Section 80TTA: Suman Claim u/s 80TTA is 10,000
Calculation of gross taxable income in India (Old regime)
Suman Total Income :Suman Salary : 13,38,000
Income from Other Sources : =25,000+45000=70,000
Total Income: 13,38,000+70,000 = 14,08,000
Deductions:
U/s 80C : 1,50,000
U/s 80D : 8,000
U/s 80TTA : 10,000, Total Deduction : 1,68,000
Gross Taxable Income : 12,40,000
Income Tax after relief u/s 87A : 1,84,500
Health and Education Cess : 7,380
Total Tax Liability : 1,91,880
Read More : Income Tax Slab
Calculation of gross taxable income in India (New regime)
Suman Salary : 16,86,000Income from Other Sources : =25,000+45000=70,000
Total Income: 16,86,000+70,000 = 17,56,000
Gross Taxable Income : 17,56,000
Income Tax after relief u/s 87A : 2,64,300
Health and Education Cess : 10,572
Total Tax Liability : 2,74,872
Tax Slab Rate for New Regime
Up to Rs 2,50,000 @ 0% Slab -Exempt from taxRs 2,50,000 to Rs 5,00,000 @ 5% Slab
Rs 5,00,000 to Rs 7,50,000 @ 10% Slab
Rs 7,50,000 to Rs 10,00,000 @ 15% Slab
Rs 10,00,000 to Rs 12,50,000 @ 20% Slab
Rs 12,50,000 to Rs 15,00,000 @ 25% Slab
More than Rs Rs 15,00,000 @ 30% Slab
76,800 @ 30% Slab
62,500 @ 25% Slab
50,000 @ 20% Slab
37,500 @ 15% Slab
25,000 @ 10% Slab
12,500 @ 5% Slab
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