Income Tax Calculation on Annual Salary

December 23, 2008

Q. Do you know how to calculate Income Tax on your annul salary?

Well most of us will answer to this question YES, but still thought of writing again on this.

India Income Tax slab changes summary –

Changes to income tax slabs in this budget from previous budget are

  • Income tax threshold in India has been raised to Rs. 1.5 lakhs from the existing 1.1 lakhs. This will give a relief of Rs. 4000.00 for each Indian tax payer.
  • For women there is no tax for income below Rs 1.80 lakh
  • Senior citizens need not pay tax for income below Rs 2.25 lakh.
  • Tax rates are also changed for different tax slabs.

India Income tax slabs 2008-2009 for Men

Income tax slab (in Rs.)

Tax

0 to 1,50,000

No tax

1,50,000 to 3,00,000

10%

3,00,000 to 5,00,000

20%

Above 5,00,000

30%

India Income tax slabs 2008-2009 for women

Income tax slab(in Rs.)

Tax

0 to 1,80,000

No tax

1,80,000 to 3,00,000

10%

3,00,000 to 5,00,000

20%

Above 5,00,000

30%

India Income tax slabs 2008-2009 for Senior citizen

Income tax slab(in Rs.)

Tax

0 to 2,25,000

No tax

2,25,000 to 3,00,000

10%

3,00,000 to 5,00,000

20%

Above 5,00,000

30%

A quick income tax calculator for the latest income tax slabs

Use the above income tax slab tables along with this free Quick Income tax calculator to calculate your income tax. The quick calculator also calculates your income tax based on previous years income tax slabs and tells you how much tax you saved.