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Tax calculator

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  • 1. Income Slab Surcharge Education Tax Rate (10 Cess percent) (2 percent) Rs 0 – Rs 50,000 No No 0 percent Rs 50,001 – Rs 60,000 No Yes 10 percent Rs 60,001 – Rs 1,50,000 No Yes 20 percent Rs 1,50,001 – Rs 8,50,000 No Yes 30 percent Exceeds Rs 8,50,000 Yes Yes 30 percent How is income tax calculated? Let's assume Mr X earns an annual income of Rs 4,50,000. Income Tax rates What it means for the tax payer Rs 0 – Rs 50,000 No tax -- Rs 50,001 – Rs 60,000 10 percent Since no tax is levied up to Rs 50,000, tax in this case is calculated on Rs 10,000 (Rs 60,000 – Rs 50,000). Rs 10,000 x 10 percent = Rs 1,000 Rs 60,001 – Rs 1,50,000 20 percent Since you have already paid tax on Rs 60,000, you now pay tax on Rs 90,000 (Rs 1,50,000 – Rs 60,000). Rs 90,000 x 20 percent = Rs 18,000 Above Rs 1,50,000 30 percent You have already paid tax on Rs 1,50,000, so you now pay tax on Rs 3,00,000 (Rs 4,50,000 – Rs 1,50,000). (Rs 3,00,000 x 30%) = Rs 90,000
  • 2. Total Tax Rs 1,000 + Rs 18,000 + Rs 90,000 = Rs 1,09,000 Surcharge 10 percent Not applicable Education Cess 2 percent Rs 2,180 Total tax payable Rs 1,11,180 Now, let's take a look at Mr Y. He earns an annual income of Rs 9,00,000, so he ends up paying a surcharge as well. Income Tax rates What it means for the tax payer Rs 0 – Rs 50,000 No tax -- Rs 50,001 – Rs 60,000 10 percent Since no tax is levied up to Rs 50,000, tax in this case is calculated on Rs 10,000 (Rs 60,000 – Rs 50,000) (Rs 10,000 x 10 percent) = Rs 1,000 Rs 60,001 – Rs 1,50,000 20 percent Since you have already paid tax on Rs 60,000, you now pay tax on Rs 90,000 (Rs 1,50,000 – Rs 60,000) (Rs 90,000 x 20 percent) = Rs 18,000 Above Rs 1,50,000 30 percent You have already paid tax on Rs 1,50,000, so you now pay tax on Rs 7,50,000 (Rs 9,00,000 – Rs 1,50,000) (Rs 7,50,000 x 30 percent) = Rs 2,25,000 Total Tax Rs 1,000 + Rs 18,000 + Rs 2,25,000 = Rs 2,44,000 Surcharge 10 percent (Rs 2,44,000 x 10 percent) = Rs 24,400
  • 3. Tax including surcharge Rs 2,44,000 + Rs 24,400 = Rs 2,68,400 Education Cess 2 percent (Rs 2,68,400 x 2 percent) = Rs 5,368 Total Tax Payable Rs 2,73,768

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