How you calculate tax in just six steps :-
Step 1: Computation of Taxable Income
Write down the income from all sources like
Note: The taxable income should be rounded off to multiple of Rs.10. Suppose if you taxable income is Rs.540523/-, it will rounded off to Rs.540520/-. If income is Rs.540525/- then it will be 540530/-. Paise should be ignored.
Step 2: Donations
Calculate the total donations you have made towards various institutions in accordance to Income Tax Rules.
Step 3: Savings
Calculate your total savings. This may include all the savings and investments mentioned in saving schemes
Step 4: calculate your taxable income
Step I - ( Step 2 + Step 3) = Taxable Income
Step V: Calculate 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 and calculate your Income tax.
Income tax slabs 2011-2012 (for Men) in India:
Tax slab for man (less than 60)
Special tax slab for Women, Senior citizen and Very Senior Citizens
Example: Mr Ajay is a salaried employee below 60 years of age. Basic salary is Rs 8,00,000. He has received Rs 18,000 as interest from Saving Bank Account. His contribution towards Employee Provident Fund is Rs 34,000. TDS deducted by his employer is... Read More
Step 1: Computation of Taxable Income
Write down the income from all sources like
- Income from Salary
- Income from House Property
- Profit and Gains of Business and Profession
- Capital Gains
- Income from Other Sources.
Note: The taxable income should be rounded off to multiple of Rs.10. Suppose if you taxable income is Rs.540523/-, it will rounded off to Rs.540520/-. If income is Rs.540525/- then it will be 540530/-. Paise should be ignored.
Step 2: Donations
Calculate the total donations you have made towards various institutions in accordance to Income Tax Rules.
Step 3: Savings
Calculate your total savings. This may include all the savings and investments mentioned in saving schemes
Step 4: calculate your taxable income
Step I - ( Step 2 + Step 3) = Taxable Income
Step V: Calculate 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 and calculate your Income tax.
Income tax slabs 2011-2012 (for Men) in India:
Tax slab for man (less than 60)
Level of Incomes |
Tax |
1. Where the total income does not exceed Rs. 1,80,000/-. |
Nil |
2. Where the total income exceeds Rs. 1,80,000 but does not exceed Rs. 5,00,000/- |
10 per cent of the amount by which the total income exceeds Rs. 1,80,000/- |
3. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 8,00,000/-. |
Rs. 32,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-. |
4. Where the total income exceeds Rs. 8,00,000/-. |
Rs. 92,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 8,00,000/-. |
Special tax slab for Women, Senior citizen and Very Senior Citizens
Tax |
Women |
Senior citizen(60 – 80 yrs) |
Very Senior Citizens(Above 80 years) |
Basic Exemption |
190000 |
250000 |
500000 |
10% tax |
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 |
Example: Mr Ajay is a salaried employee below 60 years of age. Basic salary is Rs 8,00,000. He has received Rs 18,000 as interest from Saving Bank Account. His contribution towards Employee Provident Fund is Rs 34,000. TDS deducted by his employer is... Read More
No comments:
Post a Comment