Calculating Your Income Tax Liability 2008-09

Click here to calculate your income tax for 2009-10

The income tax which is charged to you is based on the tax slabs declared by the Government in its annual budget every year. The following table encapsulates the tax slabs applicable this year. (Financial Year 2008-2009 )

Taxable Income Slab	Tax Slab
Upto Rs. 1,50,000 Up to Rs. 1,80,000 (for women) Up to Rs. 2,25,000 (for residents, 65 years or above)	Nil
Rs. 1,50,000 – Rs. 3,00,000	10%
Rs. 3,00,001 – Rs. 5,00,000	20%
Rs. 5,00,001 – Rs. 10,00,000	30%
Above Rs. 10,00,001	30% + 10% surcharge on tax
Note: In addition, an education cess of 3% is charged on the entire tax amount including surcharge

 

Please note that the taxable income is arrived at after adding all your different sources of income and subtracting the deductions that you have taken advantage of under Section 80.

Lets take a few examples to illustrate how you can calculate taxes based on these slabs.

Example 1:
Sarla is a salaried employee, her annual income is Rs. 2,40,000. She has made no tax savings investments during the year.
Let us calculate her income tax liability.

Heads			Amounts
Gross Total Income			Rs. 240,000
Deductions			Nil
Taxable Income			Rs. 240,000
Income Tax Calculations			Tax
Tax on Income upto Rs 180,000		0%	Zero
Tax on the remaining Rs 60,000		10%	Rs.6,000
Total Income Tax Due			Rs. 6,000
Educational Cess @ 3%			Rs. 180
Total Tax Payable			Rs. 6,180

Example 2:
Vinod is a salaried employee. His annual income is Rs. 3,25,000.His home loan interest payment is Rs 1,20,000 and his home loan principal repayment is Rs. 80,000.He has made an investment of Rs. 50,000 in NSC.
Let us calculate Vinod's interest liability.

Heads			Amounts
Income from Salary			Rs. 325,000
Income from House Property (Section 24 Deduction for Home loan interest repayment)			Rs.120,000
Gross Total Income			Rs. 205,000
Section 80 C Deductions			Rs.100,000
NSC Investment		Rs. 50,000
Home Loan Principal Repayment		Rs.80,000
Total		Rs. 130,000
Taxable Income			105,000
Total Tax Due			Rs. 0

Example 3:
Ram is a salaried employee who earned Rs.12,00,000. He has bought a health insurance policy for himself worth Rs 10,000. Ram has also bought ELSS funds for Rs. 80,000 and has also paid a LIC premium of Rs. 20,000.He has also donated Rs. 20,000 to the Prime Minister's Relief Fund.
Let us calculate Ram's tax liability.

Heads			Amounts
Gross Total Income			Rs. 1,200,000
Section 80 C Deductions			Rs.100,000
LIC Premium		Rs. 20,000
Home Loan Principal Repayment		Rs. 80,000
Total		Rs. 100,000
Other Donations			Rs. 30,000
Section 80D Health Insuance Premium		Rs. 10,000
Section 80G Donation To A Charity		Rs. 20,000
Total Taxable Income			1,070,000
Income Tax Calculations			Tax
Tax on Income upto Rs 150,000		0%	Zero
Tax on the next Rs 1,50,000 (Slab 150,001 to 3,00,000)		10%	Rs.15,000
Tax on the next Rs 2,00,000 (Slab Rs. 3,00,001 to Rs. 500,000)		20%	Rs.40,000
Tax on the Tax on next Rs. 570,000 (above 500,001)		30%	Rs. 1,71,000
Income Tax Due			Rs. 2,26,000
Surcharge on total tax (Surcharge is applicable if the taxable income is above Rs.1,000,000)		10%	Rs. 22,600
Income Tax Due			Rs. 2,48,600
Educational Cess @ 3%			Rs.7,458
Total Tax Payable			Rs.2,56,058

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Rekha Goel said : 15/07/2011	Does money lying in the bank account to be shown in income tax calculation as it is earning interest. Also TDS deducted by the bank in this will be available for tax refund?
Sreedhara H J said : 29/03/2011	Hi it is very good, for any financial Management, wealth Management and Tax planning related service pls contact me, my Mob number 9686448282 iam Auditor by profession Thanks
Tax slab said : 18/12/2010	What about provident fund and other savings under the income tax slabs ?
dhananjoy koner said : 22/11/2010	give me details about income tax for the financial year 2010-2011, thatis, assessment year 2011-2012,having annual income of rs.960000/-
Balaji said : 12/04/2010	I have home loan jointly with my wife but unfortunately registration was happened on my name. Now i have a doubt is my wife eligible to claim income tax?
thilaka said : 31/03/2010	My salary is 8,00,000 lakhs. As a female what is my tax liability? I have housing loan of 40 lakhs
DIPESH KARIYA said : 22/03/2010	It's beneficial to those one who can fill up the income tax return... It's reaally to all of indian...
Madhuri said : 27/02/2010	Very easy way to understand the tax calculations ......
vishakha said : 22/01/2010	Realyy it's a nice way to understand tax.
shekhar.dalvi said : 01/12/2009	this is very nice explanetion of tax
Rakesh Singh said : 27/11/2009	Thanks for your guide to learners, excellent work done by you people....expalin very clear and easy to understand metarial.
pavithra said : 25/11/2009	iam earning 2, 33,364 per annum ,belong to female category. iam paying 25000/- per year in Birla insurance . want to know how much IT i should pay for the same.
Chrisma said : 25/11/2009	Very simple explanation.Easy to understand.
Sridhar said : 01/11/2009	Thank you very much.. Very clear and useful..
amardeep said : 20/10/2009	It is nicely explained, but if they could have added pf, esi, gratuity, ta, da and other fringe benefit it is fantastic under one roof opportunity to learn everything.
Divya said : 15/10/2009	really good attempt to explain things easily..it would be more useful if other salary components like HRA, LTA etc. are taken into calculations..
Shiv Kumar vishwakarma said : 11/10/2009	Very easy and explainable. Excellent work. Thankyou so much.
meghna said : 18/09/2009	many mistakes have been made.please kindly update it..........
kapil said : 13/08/2009	this nis very good cal for me to under standing is there on line tax calcu is there for as per our needs same form as above
Sridharan Mani said : 31/07/2009	Very illustrative and useful. Needs to be updated to taken into account recent modifications.
Anamika Chhabra said : 30/07/2009	Very useful information. Thanks!!!
Krishna Mohan said : 29/07/2009	According to you, if I earn Rs. 10,01,000 then effectively my earnings are less than one who earns Rs. 9,99,000 lakhs. The surcharge should not exceed what I earn beyond Rs. 10 lakhs.
Rahul Dev said : 24/07/2009	Learning was very easy with your calculation. Thanks !!
Manish said : 24/07/2009	Very crisp and straight forward explanation given. Very helpful for people like me who don't have commerce background and have to depend upon expensive TRP's or CA's to file their I-Tax.
Vijay said : 18/07/2009	This is one of the best calculation give by you it is really very much helpfull to the new tax payer
gayathri said : 18/07/2009	Very well explained in a way easily understood for the freshers...and also to laymen.
C.N.Bhaskar said : 17/07/2009	Hai Iam Bhaskar.C.N Iam II'nd PUC commerce in{HEBA)iam very intersted in Accountant Field
rajendra said : 15/07/2009	Good,Very useful information
prasad said : 10/07/2009	Very good useful Information.
Rohit Rana said : 08/07/2009	I didn't know about tax slab bcz i am in HR field but from this site help i know excatly about tax slab deduct from various sources. So, Thank u for giving good advise
hemakiran said : 06/07/2009	very good explanation. very use full article
Mahesh said : 04/07/2009	Very good explanation. Really great. Appreciate the article
D said : 02/07/2009	Very good explanation. Appreciate your time
Dhanajaya said : 22/06/2009	My net income is 414000/annum. Savings LIC---35000 Baza Allinz--10000 LIC Parents-- 8500 Interest------25000 House rent ----72000 (Hyderabd) (Education Loan)
Krishnaprasad S said : 17/06/2009	Excellent way of explaining. Really demystifies IT computation - esp. the slab part.
TRIBHUWAN BISHT said : 11/06/2009	Income tax slab 2008-09
jagratkumarmishra said : 08/06/2009	this is really good way to educate the unaware about taxes
Mohd.shahid said : 26/05/2009	it is very good example but thing somore clearacording to income tax law .
Nitin said : 22/05/2009	Thanks, very good guideline for calculating taxable income.
Rajeev said : 14/05/2009	very good article for all tax student
babli  said : 12/05/2009	good guideline for calculating taxable income
maitri kumari said : 12/05/2009	very good article for new student of tax
sandy said : 16/04/2009	sir, my salary is 2.7 per annum,my basic is 5600 HRA is 3000, lifestyle is 6200, so wtaht will be my tax for the year 2009-2010 how can i save tax amt ?
sandy said : 16/04/2009	good site know about tax
Sreenivasulu Yarram said : 15/04/2009	My Package:300000 per annum what is basic for month? what is my hra? what is my deductions? what is my taxable amount? please send all these things with salary slip format
KALPESH PANCHAL said : 15/04/2009	what is the rate for calculate interest on income tax
vishal raj said : 14/04/2009	My Net income is around Rs.270000 and I am paying rs.3600 house rent per month. What will be my income tax for the financial year 2008-09?
Hafeez Ahamed said : 13/04/2009	sir, for HRA Which least figure we can take. What is the three options?
arbind  said : 08/04/2009	Please calculate my tax
mahesh said : 01/04/2009	sir, My Basic salary - 95277 DA. 40623 HRA 32500 CONVEYANCE 30000 M.A. 18000 INCENTIVE 51700 LIC 16541 PF 11435 T.F 10000 P.T 2200 HOW TO CALCULATE THE TAX AMOUNT PLEASE
Bapan said : 31/03/2009	My Gross income is around Rs.420000 and I am paying rs.3500 house rent per month. What will be my income tax for the financial year 2008-09?
Bapan said : 31/03/2009	My Net income is around Rs.420000 and I am paying rs.3500 house rent per month. What will be my income tax for the financial year 2008-09?
Sugar Boy said : 30/03/2009	Nice One, Like to Have More Egs
Pavan Phalke said : 25/03/2009	It is very usful tool for calculating tax and tax related queries. It would be more usful if you provide a READY RECKONER or SOFTWARE which gives approx. amount of total TAX Payable suppose I type my tax related figures.
Yogesh said : 23/03/2009	Thanks for such a useful material.
purushoth said : 23/03/2009	Kindly send me like this article, Thanks, purushoth.sk@gmail.com
purushoth said : 23/03/2009	Kindly send me like this article to my id, purushoth.sk@gmail.com
purushoth said : 23/03/2009	Super Article, Thanks,
srihari said : 20/03/2009	A nice information for the lay man and as well as for thise who are interested to know about the tax and its procedures
amit B said : 18/03/2009	In FY 2007-08 I paid Rs 80000/- as pre EMI interest for my home. In FY 2008-09 I paid pre Emi interest of 2,30,000. I am getting possession by 20 th mar 09.How much total interst I can show in my return for FY08-09.
N.Balasubramanian said : 18/03/2009	Sir My yearly salary is 264000. I am having LIC for Rs. 27876 for one year. My housing rent is Rs. 4000 per month. I have no other savings. Will I be liable for tax
vathsala said : 16/03/2009	I(female,)Joined an institute in Bangalore on 24/07/2008 which pays me Rs 40,000/pm gross, since then. They cut about 11.5% for tax. I would like to know the tax i should be paying for this year. Prior to this I was never employed. I also pay rent for the house I stay in Bangalore.
vathsala said : 16/03/2009	I(female,)Joined an institute on 24/07/2008 which pays me Rs 40,000/pm gross, since then. They cut about 11.5% for tax. I would like to know the tax i should be paying for this year. Prior to this I was never employed.
SIDDHARTH JOGDAND said : 13/03/2009	I AM VERY HAPPY, I MAKE MORE KNOWLEDGE OF SALARY INCOME CALCULATION. THANKS YOU
Dhananjoy Koner said : 12/03/2009	I am really happy to meet my necessary quaries from this article . Waiting for such articles more in future.
Hakeem Naquibul Islam said : 10/03/2009	sir, All the articles are nice,tax calculations,deductions are all quite self-explainatory.You are providing good plaet form for salaried people to express their views regarding thbeir salaries and tax deductions,etc. Thank you, Yours sincerely, Hakeen Naquibul Islam Srinaagr Kashmir
saili said : 09/03/2009	hie i am working as insurance agent n whenever i get commsion i get it after deduction of TDS
asha gupta said : 07/03/2009	I am female my gross salary is rs. 2,14,302 and family pension is rs. 67,527 including 60% arrear.. my savings is of rs. 1,00,000 plz let me knw whether i have to pay tax or not and if yes then how much????
Mahendran said : 07/03/2009	Hi , I am Mahesh working in a software company, my salary is 2,52,000. I have LIC policy for 13,000 PA,PPF 1000, and house rent 102000. what will be my Tax deducation AMT. how to calculate LIC premium and house rent Please let me know.
sanjay kumbhalkar said : 06/03/2009	my total income is 6 lakh.i saved 1 lakh under 80 cc government rule.please calculate income tax payable and tax liability
Anoj.ss said : 03/03/2009	My gross salary is Rs.:287118 for 2008-09 (including DA
jilani said : 03/03/2009	my gross salary is Rs.2,30000/-. I have saving of Rs.17,000/- as LIC. Rs.9876/- as P.F. Rs.12,000/ as H.R.A. I want to know how to save the remaining amount. I want to know how much amount should I give to my parents as gift to prevent tax on that amount. how much rebate is given on LIC policies as it was 20% earlier. Please reply.
birendra behera said : 01/03/2009	my gross income is Rs384000.my p.tax is Rs 3000,GPF deposite isRs50000 and LIC premium is 60000.then how much tax i will pay this year.
Pallav said : 25/02/2009	My gross salary is 2,80,000 for 2008-09.House rent paying 3000/- PM, Savings:100000. please let me know my calculation. Also please let me know the detailed f H.R.A. related calculation.
SK Tripathy said : 24/02/2009	What are schemes / plans to be taken for a retired person of 60 for a monthly income of Rs.25000/- PM and Maximum tax savings, who gets a total sum of Rs.40 lacs as retire benefits.
Nikhil said : 22/02/2009	my gross salary is approx 6,00,000 for 2008-09. i have done tax saving's of 70,000 for this year. Pls let me know how much income tax will i need to pay this finanacial year.
Rathish Nair said : 20/02/2009	Great work on the calculation. It was indeed helpful
himanshu srivastav said : 20/02/2009	Sir I am salaried employee my salary structure is as given below : Basic :9000 HRA :4000 CONV :4000 LTA :2500 I actualy paid rent rs 3000/-per month i have taken insurance policy of rs30000/- please send me calculation of my income tax for 2008-09
MEHUL RAI  said : 19/02/2009	Sir i this year i will earn about 2.28 crore in a year 2008-09 so give me the detail of my tax plan and how much i have to paid tax and how to save my tax
Swapna said : 19/02/2009	This is simply superb. First time i calculated my tax. Thanks a lot.
Sudhakar Ghorpade said : 16/02/2009	Its really very fantastic
Rajkumar said : 16/02/2009	Is the interest amnt for home loan is considered for tax dedcution.
Abhishek Khandelwal said : 16/02/2009	What is deduction u/s 10 how is it calculated?
Dr Rajeev Sharma said : 14/02/2009	I have taken a loan of rs 12,00,000 for a house in a society. I have yet not got the possession of the house. I pay about 14850/- as loan repayment. Since I do not have possession I am not eligible for rebate on inerest repayment but am I eligible for the rebate on the repaymnet of the Principal under section 80C
dr zeenath said : 14/02/2009	my total anual income is 480000 i have lic policy of worth 100000, how to calculate my tax
Viren  said : 14/02/2009	I have 420000 then how to calculate Tax
jane said : 13/02/2009	Very nicely explained.... Thank u
Tejmal Ganwaria said : 13/02/2009	ohhhhhhhh nice
shyamanand said : 12/02/2009	wonderful.but you have not posted about Education loan and its interest.How to be calculated//?
bhupen said : 08/02/2009	what is max pricipal and intrest amount of home loan which can be deducted in tax in thia financial year?
santhosh said : 07/02/2009	sir, my wife gets salary for 08-09 total is rs 2,25000. after detection it comes 2,01780. so 201780-180000=21780 /10% 3%=2831 she have to pay. but i have under 80c,80d document like lic and health insurance . and she is the nominee for that . my question is it applicable for her tax saving?is she can attach a husband lic and health insurance? let me know shall we attach the copy.
Nair said : 06/02/2009	my current salary is 28,000 per month which i am getting in my hand without any deduction. i joined this company since june. from my previous company the income comes to Rs. 59,000 (including leave encashment). my house loan amount comes to Rs. 70,000 p.a. (including principal and interest) and LIC 9600. what will be my taxable income.. how much i can claim for 1 child tution fee? can i claim travel expense of monthly train pass and my visit to village? my got delivered.. so any claim i can make on hospital charges?
brij bhushan said : 06/02/2009	sir i recently join a new firm in my previous company my take home salery was Rs.23988 (after PF Deduction) and now my per month asalery is 40000. in which Rs.1440 is deduct as PF. Dec. 2008 i joined this company. and i have Rs. 48,751 yearly premium of LIC and other tax saving funds. so please tell me how much tax i have to pay or how much saving i have to do.