How to Calculate Income Tax Slab Rate for Individuals

Last updated at Dec. 16, 2024 by

Income Tax Slab Rate is as follows :-

Income Tax Slab Rate.jpg

 

Note

Currently Slab Rate for Financial Year 2018-19 (Assessment Year 2019-20) is applicable for filing ITR

Slab Rate 1.jpg

Example 1

Suppose a shopkeeper has

Sales 50 lacs

Purchase 30 lacs

Office Expenses 16 Lacs

What is his Profit?

Also Calculate his Tax

Answer

Particular

Amount
Sales 5000000
Less Expense  4600000
Profit(PGBP Income) 400000
Tax 7500
Rebate 2500
Net Tax 5000
Education and Health Cess 4% 200
Tax + Cess 5200

 

Example 2

Suppose an Advocate has

Professional Receipts 10 lacs

Expenses

Rent 400000

Salary 100000

What is his Profit?

Also Calculate his Tax

Answer

Particular

Amount
Sales 1000000
Less Expense  500000
Profit(PGBP Income) 500000
Tax 12500
Rebate 2500
Net Tax 10000
Education and Health Cess 4% 400
Tax + Cess 10400
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Transcript

INCOME TAX UPTO 250000 0 250000-500000 5% of (Income-250000) 5000001-1000000 20% of (Income-500000)+12500 >1000000 30% of (Income-500000)+112500 There is Rebate of 5000 2500 also if Income between 250000-350000 Example 1 Suppose an Employee gets a Salary of 15000 per month. What is Income Tax Payable by him? Monthly Salary=15000 Annual Salary=180000 Since Salary is less than 250000,no income tax is payable Example 2 Suppose an Employee gets a Salary of 35000 per month. What is Income Tax Payable by him? Monthly Salary=35000 Annual Salary=35000*12=420000 Income Tax =5%*(420000-250000) =5%* 170000 =8500 Rebate=0 Net Tax=8500 Cess = 3%*8500 = 255 Tax + Cess = 8755

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CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.