How to calculate tax from salary??

Question

please answer this question according to indian tax rule 2006

Answer 1

Add Income under five heads i.e
Income from Salaries. +Income /loss from house property.+
Profit/loss from Business/Profession.+Capital Gain/loss+
income from other source =Gross Total Income (GTI)
From that GTI deduct deduction U/S 80ccc to 80 u, the remaining amount will be Net income (NI)
On the basis of net income and your age and gender calculate the tax as under.

Following is the Tax rate.

For individuals resident woman {not being a senior citizen (who is of 65 years or more at anytime during the previous year)}
Net income range income tax rate
Upto 135000 nil
135000 to 150000 10% of (TI-135000) + 2% education cess
150000 to 250000 1500+20% of (TI-150000) +2% education cess
250000 to 1000000 21500+30% of (TI- 250000) +2% education
cess
above 1000000 246500+30%of (TI-1000000) +10% of income tax Surcharge + 2% of income tax and surcharge


For resident senior citizen (who is of 65 years or more at anytime during the previous year)
upto 185000 nil
185001 to 250000 20% of (TI-185000)+2% edu cess
250001 to 1000000 13000+30% of (TI- 250000)+2% edu cess
above 1000000 238000+30% of (TI- 1000000)+10% sc
+2% edu cess


For any other individual, every HUF/AOP/BOI/Artificial juridical person

upto 100000 nil
100000 to 150000 10%of (TI- 100000)+2% ec
150001 to 250000 5000+20% of (TI-150000)+2% ec
250001 to 1000000 25000+30% of(TI- 250000)+2%ec
above 1000000 250000+30% of (TI-1000000)+10% sc+2%ec

Answer 2

Dear Sankha,

There are many automatic tax calculators available on the net. One such calculator is at http://www.taxmann.com/taxmanndit/xtras/taxcalc.aspx

Just plug in the values and whoosh your tax calculation is ready

Answer 3

GROSS SALARY INCOME
MINUS ALLOWED DEDUCTIONS
NET INCOME
MINUS DEDUCTIONS UNDER CHAPTER VI
TAXABLE INCOME.

UPTO RS.1,00,000 TAX NIL
1,00,000 TO 1.50,000 10%
1,50,000 TO 2,50,000 20%
2,50,000 AND ABOVE 30%
ADD 2% CESS ON TAX

GOOD LUCK