Tax Calculation in India
Tax calculation in India
This is the process of determining the amount of tax payable to the authorities. If you are a taxpayer, you should use a financial calculator to arrive at the exact amount. In India, tax is levied on income of both private sector and public sector employees.
Income Tax calculation in India is performed on the basis of the income of an individual from different heads of income (as laid down under section 14, chapter 4 of the IT Act, 1961). These heads are the following:
Income from salary
Income from business or profession
Income from capital gains
Income from residential property
Income from other sources
Income Tax Rates for financial year 2010-2011
Listed below are the rates for men, women, and senior citizens for the financial year 2010-2011:
For Men
Amount of Income with Rate
Upto Rs. 1,60,000 – Nil
Rs. 1,60,001 to Rs. 5,00,000 – 10%
Rs. 5,00,001 to Rs. 8,00,000 – 20%
Greater than Rs.8,00,000 – 30%