RE:how to calcuate income tax
by Amitabh on Apr 24, 2007 12:55 PM Permalink
First calculate income under the following heads taking into account the exemptions available under each head 1.Salary 2.House property 3.Profits and Gains of business and profession 4.Capital Gains 5.Other sources.The total income from all the five sources taken together is your gross total income.From here take into account deductions available for investments made,donations made,etc.These deductions are available under Sec 80C to Sec 80U.The gross income less deductions give your net taxable income.Now you can calculate your tax as per the prevailing rates.However,it would be better if you ask specific question pertaining to your taxation issues rather than such general questions.
RE:RE:how to calcuate income tax
by Amitabh on Apr 24, 2007 01:14 PM Permalink
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
