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Income Tax Calculator

What is an Income Tax Slab?

An Income Tax Slab is a table that prescribes threshold limits beyond which a person would be chargeable to income tax based on a certain rate of tax and some deductions. There is a vast category of persons or companies that are covered by this slab that gets amended from time to time.


For a better understanding of the functioning of this income tax slab, there are three crucial components on the basis of which these tax slabs are created.


1. Income Tax Act, 1961 - This act plays the most influencing factor in the fixing of the tax rates in the income tax slab. The taxable persons will be assessed in accordance with this Act and in case of failure in abiding with such laws, the penalties would be levied in accordance with the Income Tax Act, 1961.


2. Yearly Amendments- As Income Tax is a revenue law, it gets amended from time to time by the government. Whenever such changes are implemented, the Government comes up with a finance bill that directly affects the threshold caps for various tax rates of Income Tax.


3. Income – Income tax is a tax levied on a person or company’s income. Income is any regular monetary or other receipts having a money value from a definite source. Therefore, income plays a deciding factor when it comes to the applicability of the tax rates mentioned in the income tax slabs.


Important factors that determines the applicability of income tax slab

  • Assessee’s income: The income of a person decides whether he would be chargeable with income tax or not.
  • Gross income: This is an important parameter as the tax is calculated on the basis of this income.
  • Residential status of the assessee: Separate rules and regulations have been stated in the Income Tax Act, 1962, in respect of the residential status of the assessee.
  • Assessment year: As tax slab rates changes every year, therefore, assessment year becomes a deciding factor to apply tax rates mentioned in the tax slabs.
  • Maximum amount beyond which the income tax would be applicable.
  • Rate of tax: This is the major aspect highlighted by these slabs to levy income tax on assessees. Based on the above factors, the rate of tax would be applicable.

Applicability of Income Tax Slabs

  • Indian residents having a regular source of income
  • A Hindu Undivided Families (HUF)
  • Companies
  • Firms
  • Association of Persons (AOP)/ Body of Individuals (BOI) whether incorporated or not
  • Local authorities

How to Calculate Your Income Tax? Learn Here… Step I: Calculate Gross Income
Calculate your Annual/Gross Income. (Monthly Income * 12)

Step II: Sum up the donations
Calculate the total donations you have made towards various institutions during the year in accordance with the Income Tax Rules.

Step III: Add together the savings
Calculate your total savings for the entire year. This may include all the savings and investments mentioned in Income Tax Saving Schemes Sections.

Step IV: Calculate Taxable Income
Follow the following rule to calculate your taxable income: Step I - (Step II + Step III) = Taxable Income

Step V: The final amount of Income Tax
When you have calculated your taxable income, refer to the following slabs to calculate your Income Tax accordingly. Choose the slab according to your income to calculate your Income tax.

Applicability of Income Tax Slabs

  • No income tax is applicable on income above Rs. 5 Lakhs.
  • The above exemption combined with deductions on savings under Section 80 has granted people a grand exemption from Income Tax up to an amount of Rs. 6.5 Lakhs.
  • The Long Term Capital Gain Tax has once again made applicable on stock market investments.
  • The salaried employees have been allowed with a standard deduction of Rs. 50,000.
  • The TDS applicable on rental income has been increased to Rs. 2.4 lakhs from 1.8 lakhs.
  • The TDS applicable on bank and post office deposits has been increased from Rs. 10,000 to Rs. 40,000.
  • An exemption of Rs. 50,000 on interest from deposits in banks and post offices is provided to the senior citizen above 60 years of age.
  • The Education Cess on income tax is increased to 4 percent from 3 percent. This will make a direct impact on the tax liability of the tax payers.

Income Tax Slabs 2019-2020 (for Men) in India:
The threshold income tax exemption limit for men has been revised to Rs 2,50,000 than the previous limit of Rs 1,80,000.There will be a minimum saving of Rs 70000 in income tax than previous year.
Income Tax Slab (in Rs.) Tax
Up to Rs 2,50,000 No Tax
2,50,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

Income Tax Slabs 2019-2020 (for Women) in India:
When the government charges a fee on a product, income or activity to be used to finance government expenditure gets known as tax. Government imposes two kinds of taxes :
Direct tax- tax levied on personal or corporate income
Indirect tax- tax levied on price of a good or service
Public goods and services are provided by government and quasi-government agencies which tend to finance themselves largely through taxes.
There is no change in tax structure for women.
Income Tax Slab (in Rs.) Tax
Upto 2,50,000 No Tax
2,50,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

Income Tax Slabs 2019-2020 Less Than 60 Year (For Senior Citizens Both Male and Female) in India:
A new income tax bracket for senior citizens has been introduced which are above eighty years of age. The tax exemption limit to senior citizens above 80 of age has been increased to Rs. five lakhs from the existing 2.4 lakhs. For senior citizens between 60 to 80 years the tax exemption limit has been revised to Rs 3,00,000 from Rs 2,50,000 thus an increase of Rs 50,000 only. The senior citizen age has also been reduced to 60 years from 64 years.
Income Tax Slab (in Rs.) Tax
Up to Rs 2,50,000 No Tax / Exempt
2,50,001 to 5,00,000 5%
5,00,000 to 10,00,000 20%
Above 10,00,000 30%

Age of Between 60 and 80 Years (For Senior Citizens Both Male and Female) in India:
Income Tax Slab (in Rs.) Tax
Up to Rs 3,00,000 No Tax / Nill
3,00,001 to 5,00,000 5%
5,00,001 to 10,00,000 20%
Above 10,00,000 30%

Age of 80 Years or More (For Senior Citizens apply for both Male and Female) in India:
Income Tax Slab (in Rs.) Tax
Up to Rs 5,00,000 No Tax / Nill
5,00,001 to 10,00,000 20%
Above 10,00,000 30%
Step VI: Education Cess Add 3 % of your taxable income as the Educational Cess to the Income Tax amount calculated in step V.

TAX CALCULATED

Example Example 1: Mrs. Kuldeep is 35 year old and earning 8 lac annually. (Male)

Calculation
Tax on Income up to 2,50,000 Nil
Tax on Income between 2,50,000-5,00,000 (@ 5%) 25000
Tax on Income between 5,00,001-10,00,000 (@ 20%) 200000
Total 225,000
Educational Cess(@ 3% of Total Tax) 6750
Net Tax Payable 231750

Example 3: Mrs. Rajesh is 67 years old and earning 8 lac annually. (Senior Citizen)

Calculation
Tax on Income up to 3,00,000 Nil
Tax on Income between 3,00,001-5,00,000 (@ 5%) 20,000
Tax on Income between 5,00,001-10,00,000 (@ 20%) 180,000
Total 20,0000
Educational Cess(@ 3% of Total Tax) 6,000
Net Tax Payable 20,6000
Income Tax Slabs 2019-20
Basic Exemption Men Women Senior Citizen Less Than 60 Senior (60 and 80 Year) Senior Citezen Above 80
No Tax 250000 250000 250000 300000 500000
5% 250001 to 500000 250001 to 500000 250001 to 500000 300001 to 500000 Nill
20% 500001 to 1000000 500001 to 1000000 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% Above 1000000 Above 1000000 Above 1000000 Above 1000000 Above 1000000

INCOME TAX SLABS FOR MEN, WOMEN AND SENIOR CITIZENS FROM FINANCIAL YEAR 2001 TO 2018
Tax MEN WOMEN SENIOR CITIZEN
Financial Year 2017-18
Basic Exemption 250000 300000 500000
5% tax 250001 to 500000 300001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax Above 1000000 Above 1000000 Above 1000000
Financial Year 2016-17
Basic Exemption 250000 250000 300000
10% tax 250001 to 500000 250001 to 500000 300001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax Above 1000000 Above 1000000 Above 1000000
Financial Year 2015-16
Basic Exemption 250000 250000 300000
10% tax 250001 to 500000 250001 to 500000 300001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax Above 1000000 Above 1000000 Above 1000000
Financial Year 2014-15
Basic Exemption 250000 250000 300000
10% tax 250001 to 500000 300001 to 500000 300001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax Above 1000000 Above 1000000 Above 1000000
Financial Year 2013-14
Basic Exemption 200000 200000 200000
10% tax 200001 to 500000 200001 to 500000 200001 to 500000
20% tax 500001 to 1000000 500001 to 1000000 500001 to 1000000
30% tax Above 1000000 Above 1000000 Above 1000000
Financial Year 2012-13
Basic Exemption 180000 190000 250000
10% tax 180001 to 500000 190001 to 500000 250001 to 500000
20% tax 500001 to 800000 500001 to 800000 500001 to 800000
30% tax Above 800000 Above 800000 Above 800000
Financial Year 2011-12
Basic Exemption 180000 190000 250000
10% tax 180001 to 500000 190001 to 500000 250001 to 500000
20% tax 500001 to 800000 500001 to 800000 500001 to 800000
30% tax Above 800000 Above 800000 Above 800000
Financial Year 2010-11
Basic Exemption 160000 190000 240000
10% tax 160001 to 500000 190001 to 500000 240001 to 500000
20% tax 500001 to 800000 500001 to 800000 500001 to 800000
30% tax above 800000 above 800000 above 800000
Financial Year 2009-10
Basic Exemption 160000 190000 240000
10% tax 160001 to 300000 190001 to 300000 240001 to 300000
20% tax 300001 to 500000 300001 to 500000 300001 to 500000
10% tax above 500000 above 500000 above 500000
Financial Year 2008-09
Basic Exemption 150000 180000 225000
10% tax 150001 to 300000 180001 to 300000 225001 to 300000
20% tax 300001 to 500000 300001 to 500000 300001 to 500000
30% tax above 500000 above 500000 above 500000
Financial Year 2007-08
Basic Exemption 110000 145000 195000
10% tax 110001 to 150000 145001 to 150000 Nil
20% tax 150001 to 250000 150001 to 250000 195001 to 250000
30% tax above 250000 above 250000 above 250000
Note:- there is a 10% surcharge if income is greater than 10 lakh
Financial Year 2006-07 & 2005-06
Basic Exemption 100000 135000 185000
10% tax 100001 to 150000 135001 to 150000 Nil
20% tax 150001 to 250000 150001 to 250000 185001 to 250000
30% tax above 250000 above 250000 above 250000
Financial Year 2004-05 & 2003-04
Basic Exemption 50000 50000 50000
10% tax 50001 to 60000 50001 to 60000 50001 to 60000
20% tax 60001 to 150000 60001 to 150000 60001 to 150000
30% tax above 150000 above 150000 above 150000
Note:- there is a 10% surcharge if income is greater than 8.5 lakh
Financial Year 2002-03
Basic Exemption 50000 50000 50000
10% tax 50001 to 60000 50001 to 60000 50001 to 60000
20% tax 60001 to 150000 60001 to 150000 60001 to 150000
30% tax above 150000 above 150000 above 150000
Note:- there is a 5% surcharge if income is greater than 60000.
Financial Year 2001-02
Basic Exemption 50000 50000 50000
10% tax 50001 to 60000 50001 to 60000 50001 to 60000
20% tax 60001 to 150000 60001 to 150000 60001 to 150000
30% tax above 150000 above 150000 above 150000
Note:- there is a 2% surcharge if income is greater than 60000.

Glimpse of Direct Tax Code
Indian Union government is, currently, following, Direct Tax Code (DTC) in India from April 1, 2011. This DTC has replaced the previous Income tax structure in India, leaving more money in the hands of people.

Although, During the budget 2010 presentation, the finance minister Mr. Pranab Mukherjee said to enforce the new direct tax code (DTC) from 1st of April, 2011, but same could not be fulfilled and now it will be applicable from 1st April, 2012. Union government is determined to implement that Direct Tax Code (DTC) in India by April 1, 2011. The new DTC will replace the existing Income tax structure in India, leaving more money in the hands of people. Here are the main highlights of Direct Tax Code (DTC)

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