Once the net taxable income is calculated,tax can be calculated as follows.For incomes upto Rs 1,00,000 nil tax.For incomes more than Rs 1 lac but upto rs 1.50 lacs,10 % of the amount by which income exceeds Rs 1 lac.For incomes greater than Rs 1.5 lac but upto rs 2.50 lacs,Rs 5000 plus 20 % of the amount by which income exceeds Rs 1.5 lacs.For incomes greater than Rs 2.50 lacs,Rs 25000 plus 30 % of the amount by which income exceeds rs 2.50 lacs.However,from FY 2007-08,initial exemption limit has gone up to Rs 1,10,000
