Hi all, here I have explained the income tax regimes calculation. both old regime and new regime. It will be useful everyone and also I have explained about the HRA(House rent allowance) calculation method. Sections in income taxes. in this ppt i clearly explained about the exemptions and deductions of taxes. There are 298 Sections, that I will explain in another presentation. Hope you all like my presentation. you can comment on post regarding any doubts related to regimes calculations and its sections, etc..

2.  Income tax is a tax charged on the annual income of
an individual or business earned in a financial year.
 The Income Tax system in India is governed by
“The Income Tax Act, 1961”.
 Income tax is typically calculated for the previous
year. (Ex: If you are filing your tax return in 2024,
you would be reporting income and expenses for the
tax year that ended in 2023.)
 There is a two types of taxes : Direct tax and indirect
tax.

4.  Identify income from all sources
 Identify and calculate exemptions and
deductions from income
 Calculate Net taxable income
 Compute income tax based on tax slab
 Finalize income tax (Add CESS, Reduce Rebate)

5. Different
Income
Sources
Salary
Interest from Bank Deposits
Property Rent
Income From Business
Capital Gains
Other Income Sources
Speculative income

6. EXEMPTIONS DEDUCTON
 Section 10 of Income Tax Act.
 Sec 80C – Investment Types
Sections such as 80C,80D,etc.
Exemption are not attached to taxable income, but deduction
are reduced from taxable income

7. Tax Exemptions :
•Leave Travel Allowance
•House Rent Allowance
•Children Education Allowance
•Hostel Allowance ,etc…
Tax Deduction :
•Standard Deduction (₹50,000)
•₹1.5Lakh (Section 80C,80CC and
80CCD(1) – EPF, PPF, ELSS, etc.
•Medical Insurance
•Interest on housing loan up to 2
lakhs (for self occupied) ,etc…
Tax Exemptions :
•Leave Travel Allowance
•House Rent Allowance
•Children Education Allowance
•Hostel Allowance ,etc…
Tax Deduction :
•₹1.5Lakh (Section 80C,80CC and
80CCD(1) – EPF, PPF, ELSS, etc.
•Medical Insurance
•Interest on housing loan up to 2
lakhs (for self occupied) ,etc…
Very few deductions available
Standard Deduction (₹50,000),..
Introduced in Budget 2023.

8. SECTIONS ELIGIBLE
INVESTMENTS FOR
TD
MAXIMUM
DEDUCTION
80C
Investment made in Equity
Linked Saving Schemes,
PPF/SPF/RPF, Life
Insurance Premiums, etc.
Rs 1,50,000
80CCC
Payment made towards
pension funds
Rs 1,50,000
80CCD(1)
Payments made towards
Atal Pension Yojana or
other pension schemes
notified by government
Employed: 10% of basic
salary + DA
Self-employed: 20% of
gross total income
80CCD(1B)
Investments in NPS
(outside Rs 1,50,000 limit
under Section 80CCE)
Rs 50,000

9. Salaried employees – Sec 10(13A)
 Total HRA paid through salary
 50% of Basic (METRO) or
40% of Basic (NON-METRO)
 Rent – 10% Basic
Basic
salary
Received
Rs.20000
(*12)
Rs.240000
HRA
Received
Rs.10850
(*12)
Rs.130200
Actual Rent
Paid
Rs.8000
(*12)
Rs.96000
City of residence METRO
Total HRA
paid through
salary
Rs.130200
50% of the
basic salary
Rent – 10%
basic
Rs.240000
*(50/100)
120000
96000-
(240000*10/100)
72000
Total HRA - HRA Exemption = 130200 - 72000 = Rs.58,200

10. Gross
Salar
y
10,00,000
50,000
House Rent
Allowance
(HRA)
Exemption
Exem
ption
9,50,000
Interest
from
Deposits
70,000
Gross
total
Incom
e
10,20,000
Section 80C
Section 80D
Section 24
2,00,000
Net
Taxable
income
8,20,000

11. OLD TAX REGIME NEW TAX REGIME
Net taxable
income slabs
Tax rate
Upto ₹2.5 Lakhs 0%
₹2.5 Lakhs –
₹5Lakhs
5%
₹5 Lakhs - ₹10
Lakhs
20%
> ₹10 Lakhs 30%
Net taxable income
slabs
Tax rate
Upto ₹3Lakhs 0%
₹3 Lakhs – ₹6 Lakhs 5%
₹6 Lakhs - ₹9 Lakhs 10%
₹9 Lakhs – ₹12
Lakhs
15%
₹12 Lakhs - ₹15
Lakhs
20%
> ₹15 Lakhs 30%

12. 87A REBATE
NET Taxable income
less than
SURCHARGE ON
INCOME TAX
NET Taxable income
more than
HEALTH AND
EDUCATION CESS ON
INCOME TAX
50,000 50 Lakhs
4%

13. Gross Salary 9,00,000
Standard
Deduction
50,000 (-)
HRA Exemption 1,95,000 (-)
Gross Salary-
Exemptions
6,55,000
Interest From
Deposits
70,000 (+)
Gross total
Income
7,25,000
PPF + EPF
(80C)
1,00,000 (-)
Medical
Insurance
25,000 (-)
Net Taxable
Income
6,00,000
9,00,000
2,45,000
6,55,000
70,000
7,25,000
1,25,000
6,00,000

14. 2,50,000
No Income Tax
2,50,000
2,50,000
5,00,000
5%
Income Tax
12,500
1,00,000
6,00,000
20%
Income Tax
20,000
+
Income Tax 32,500
Net Taxable
Income
6,00,000
33,800
Total Income
Tax Amount
Net taxable
income slabs
Tax rate
Upto ₹2.5 Lakhs 0%
₹2.5 Lakhs –
₹5Lakhs
5%
₹5 Lakhs - ₹10
Lakhs
20%
> ₹10 Lakhs 30%
CESS 1300

15. Gross
Salary
10,00,000
Standard
Deduction
50,000 (-)
Professional
Tax
2400 (-)
Net Taxable
Income
9,47,600
10,00,000
50,000
9,50,000
2400
9,47,600

16. 3,00,000
No Income Tax
3,00,000
3,00,000
6,00,000
5%
Income Tax
15,000
3,00,000
9,00,000
10%
Income Tax
30,000
+
Income Tax 52,140
Net Taxable
Income
9,47,600
Net taxable income
slabs
Tax rate
Upto ₹3Lakhs 0%
₹3 Lakhs – ₹6 Lakhs 5%
₹6 Lakhs - ₹9 Lakhs 10%
₹9 Lakhs – ₹12
Lakhs
15%
₹12 Lakhs - ₹15
Lakhs
20%
> ₹15 Lakhs 30%
47,600
9,47,600
15%
Income Tax +
7,140
Total Income
Tax Amount
54,226
CESS 2086