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 | ||
Browse All Categories :
| Tax Filing | Income from Salaries | Tax Deduction |
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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. |
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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 |
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saili said : 09/03/2009 |
hie i am working as insurance agent n whenever i get commsion i get it after deduction of TDS |
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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???? |
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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. |
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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 |
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Anoj.ss said : 03/03/2009 |
My gross salary is Rs.:287118 for 2008-09 (including DA |
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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. |
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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. |
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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. |