How can I calculate my taxes? What are the income tax slabs?
Calculating your income taxes is very easy. All you need to know is which tax slab will be applicable to you. But, before we get to tax slabs, lets understand in 3 quick steps how to calculate taxes.
Step 1: Identify and tabulate all sources of income – salary, business income, interest, rental, capital gains
Step 2: Identify which deductions and tax savings are applicable to you – 80C deductions, interest repayment
Step 3: Apply the relevant tax slab depending upon your sex and age, after taking the deductions and savings
In addition to the tax payable on income, you will also have to pay a Surcharge (if your income exceeds Rs.10 lakhs in case of individuals) and an Education Cess levied by the Government on all tax payers. If you are a salaried employee, chances are that your employer has already deducted these in your monthly pay.
The tax slab will help you identify how much of your income will be available to you tax free and thereafter what tax rate will be charged to the remaining income.
If you are a woman or a senior citizen, you will be entitled to a larger tax-free amount. The following tables will help you identify which tax slabs are relevant for you:
- Resident Individual below 65 years of age or HUF (tax free income up to the first Rs.1.50 lakhs)
- Resident Woman below 65 years of age (tax free income up to the first Rs.1.80 lakhs)
- Resident Senior Citizens – 65 years of age or above (tax free income up to the first Rs.2.25 lakhs)
As shown below, after the initial tax-free amount, different slabs of your income will be charged at different rates.
| For Resident Individual below 65 years of age or HUF | |||
Net Income Range | Income Tax | Plus Surcharge | Plus Education Cess |
Up to Rs.1,50,000 | Nil | Nil | Nil |
Rs.1,50,001 to Rs.3,00,000 | 10% of income above Rs.1,50,000 | Nil | 3% of income tax |
Rs.3,00,001 to Rs.5,00,000 | Rs.15,000 + 20% of income above Rs.3,00,000 | Nil | 3% of income tax |
Rs.5,00,001 to Rs.10,00,000 | Rs.55,000 + 30% of income above Rs.5,00,000 | Nil | 3% of income tax |
Above Rs. 10,00,000 | Rs.2,05,000 + 30% of income above Rs.10,00,000 | 10% of income tax | 3% of income tax and surcharge |
| For Resident Women below 65 years of age | |||
Net Income Range | Income Tax | Plus Surcharge | Plus Education Cess |
Up to Rs.1,80,000 | Nil | Nil | Nil |
Rs.1,80,001 to Rs.3,00,000 | 10% of the income above Rs.1,80,000 | Nil | 3% of income tax |
Rs.3,00,001 to Rs.5,00,000 | Rs.12,000 + 20% of the income above Rs.3,00,000 | Nil | 3% of income tax |
Rs.5,00,001 to Rs.10,00,000 | Rs.52,000 + 30% of the income above Rs.5,00,000 | Nil | 3% of income tax |
Above Rs.10,00,000 | Rs.2,02,000 + 30% of the income above Rs.10,00,000 | 10% of income tax | 3% of income tax and surchargee |
| For Resident Senior Citizens ( 65 years of age and above, including those who turn 65 at any time during the Financial Year 2008-09) | |||
Net Income Range | Income Tax | Plus Surcharge | Plus Education Cess |
Up to Rs.2,25,000 | Nil | Nil | Nil |
Rs.2,25,001 to Rs.3,00,000 | 10% of the income above Rs.2,25,000 | Nil | 3% of income tax |
Rs.3,00,001 to Rs.5,00,000 | Rs.7,500 + 20% of the income above Rs.3,00,000 | Nil | 3% of income tax |
Rs.5,00,001 to Rs.10,00,000 | Rs.47,500 + 30% of the income above Rs.5,00,000 | Nil | 3% of income tax |
Above Rs.10,00,000 | Rs.2,05,000 + 30% of the income above Rs.10,00,000 | 10% of income tax | 3% of income tax and surchargee |
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| Tax Filing | Income from Salaries | Tax Deduction |
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mukund said : 20/03/2011 |
only info doesnot work. It is better if you give readymade calculation sheet whereby just putting figures one can work out tax calculation sheet for his filing IT return. |