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Income Tax Calculator

How to Calculate Income Tax

The calculation of Income Tax depends on many factors. Some of the important factors that affect the calculation of Income Tax are the amount of income earned, the source of income and the age of the earning person. To calculate the amount of income tax levied on an individual, they are required to declare their total earnings and the total deductions for the assessment year. ALong with the earnings and deductions, the individual is also required to file exemptions from the taxes as well. A person can claim medical, educational, HRA exemption etc. There are certain investments that attract exemptions from the government. If the taxpayer intimates the Income Tax Department regarding these investments, then they can avail tax exemptions.

Gross Salary

Gross salary is the monthly or yearly salary which is received by a person without any tax deductions. The components of gross salary include: basic salary, house rent allowance, leave travel allowance, provident fund, medical allowances, professional tax etc. The difference between gross and net salary is that, net salary is the total income received by the wage-earner after the total expenses are deducted, the salary calculated without any deductions is considered to be the gross salary. 

  • Aadhar number must be linked with UAN
  • The Aadhar card and bank details must be verified by the employer
  • UAN must be active before applying for EPF withdrawal
  • You must be registered in the EPFO member portal

Once you’ve met all these conditions, you need to download form 19-UAN and form 20C-UAN. Post downloading these forms you need to fill them up by providing details like name, PAN, Aadhar Number, UAN and your reason for leaving the service. You need to make sure that the details provided by you are verified, else, it could lead to failure or delay of the withdrawal process.

Computation of Tax

Computation of Tax Liability

Normal tax rates applicable to a resident individual of the age of 60 years or above at any time during the year but below the age of 80 years

Net income range

Income-tax rates

Health and Education Cess

Up to Rs. 3,00,000

Nil

Nil

Rs. 3,00,000 – Rs. 5,00,000

5%  of  (total  income  minus  Rs.3,00,000) [*]

4% of income-tax

Rs. 5,00,000 – Rs. 10,00,000

Rs. 10,000 + 20% of (total income minus Rs. 5,00,000)

4% of income-tax

Above Rs. 10,00,000

Rs. 1,10,000 + 30% of (total income minus Rs. 10,00,000)

4% of income-tax

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Normal tax rates applicable to a resident individual of the age of 80 years or above at any time during the year

Net income range

Income-tax rates

Health and Education Cess

Up to Rs. 5,00,000

Nil

Nil

Rs. 5,00,000 – Rs. 10,00,000

20%  of  (total  income  minus  Rs. 5,00,000)

4% of income-tax

Above Rs. 10,00,000

Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000)

4% of income-tax

 Non-resident individual irrespective of age

Net income range

Income-tax rates

Health and Education Cess

Up to Rs. 2,50,000

Nil

Nil

Rs. 2,50,000 – Rs. 5,00,000

5%  of  (total  income  minus  Rs. 2,00,000) [*]

4% of income-tax

Rs. 5,00,000 – Rs. 10,00,000

Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)

4% of income-tax

Above Rs. 10,00,000

Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)

4% of income-tax

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Normal tax rate applicable to resident/non-resident Hindu Undivided Family (HUF)

Net income range

Income-tax rates

Health and Education

Up to Rs. 2,50,000

Nil

Nil

Rs. 2,50,000 – Rs. 5,00,000

5%  of  (total  income  minus  Rs.2,50,000)

4% of income-tax

Rs. 5,00,000 – Rs. 10,00,000

Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)

4% of income-tax

Above Rs. 10,00,000

Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)

4% of income-tax

Normal tax rates applicable to every AOP/BOI/Artificial juridical person

Net income range

Income-tax rates

Health and Education

Up to Rs. 2,50,000

Nil

Nil

Rs. 2,50,000 – Rs. 5,00,000

5%  of  (total  income  minus  Rs. 2,50,000)

4% of income-tax

Rs. 5,00,000 – Rs. 10,00,000

Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)

4% of income-tax

Above Rs. 10,00,000

Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)

4% of income-tax

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Get your free Credit report that cost Rs 1200 for FREE

1. Build your Credit Score

2. Reduce your Current Borrowing / EMI Costs

Normal tax rates applicable to a Co-operative societies

Net income range

Rate of income-tax

Up to Rs. 10,000

10%

Rs. 10,000 - Rs. 20,000

20%

Above Rs. 20,000

30%

 

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