Income Slab                  Surcharge        Education            Tax Rate
                             (10              ...
Total Tax                                Rs 1,000 + Rs 18,000 + Rs 90,000
                                         = Rs 1,...
Tax including surcharge               Rs 2,44,000 + Rs 24,400 = Rs
                                      2,68,400

Educati...
Upcoming SlideShare
Loading in...5
×

Tax calculator

479

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
479
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Tax calculator

  1. 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. 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. 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

×