This document outlines India's income tax slab rates and calculates tax owed for two individuals. It shows five tax slabs with rates of 0%, 10%, 20%, 30%, and 30% plus a surcharge. For an income of ₹4,50,000, the individual owes ₹1,11,180 total including ₹1,09,000 in income tax, a 2% education cess of ₹2,180. For an income of ₹9,00,000, the individual owes ₹2,73,768 total, which includes ₹2,44,000 in income tax, a 10% surcharge of ₹24,400,

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