How is income tax calculated in India example?
As his taxable income is Rs. 3,77,500, he falls in the slab of 2.5 lakhs – 5 lakhs of income tax. Thus he has to pay 10% of his net income as income tax….Example.
| Basic Salary | 25000 * 12 | = 3,00,000 |
|---|---|---|
| EA | 2250 * 12 | = 27,000 |
| Gross Salary | = 3,81,000 | |
| Professional Tax | 3500 | |
| Net income | = 3,77,500 |
How income tax is calculated on salary?
How to Calculate Taxable Income on Salary?
| Net Income | Income Tax Rates |
|---|---|
| Up to Rs.3 lakhs | NIL |
| Rs.3 lakhs to Rs.5 lakhs | 5% of (Total Income – Rs.3 lakhs) |
| Rs.5 lakhs to Rs.10 lakhs | Rs.10,000 + 20% of (Total income – Rs.5 lakhs) |
| Above Rs.10 lakhs | Rs.1,10,000 + 30% of (Total income – Rs.10 lakhs) |
How do you calculate taxable income example?
Total Taxable Income = Gross Total Income – Deductions / Exemptions allowed from Income
- Total Taxable Income = 693600 + 40000 – (15000 + 14000 + 6500)
- Total Taxable Income = 733600 – 35500.
- Total Taxable Income = 698100.
What are examples of income tax?
Taxes levied on the earnings of companies and individuals are referred to as income taxes. Earnings subject to income taxes can come from diverse sources, including wages, salaries, dividends, interest, royalties, rents, gambling winnings, and product sales.
Is tax calculated on basic salary or CTC?
Income Tax, in this case, is deducted at source by the employer and is based on the gross pay of the employee. Also, basic salary of an employee should be at least 50%-60% of his/her gross salary.
What are some examples of income tax?
How do I calculate taxable income in Excel?
Calculate income tax in Excel
- Add a Differential column right to the tax table.
- Add an Amount column right to the new tax table.
- Add a Tax column right to the new tax table.
- Click into the cell you will place the income tax at, and sum all positive numbers in the Tax column with the formula =SUM(F6:F8).