Its February, and March is nearby, and most of us salaried employees are going to be fazed by the term “INCOME TAX”. Well most of us really don’t know the real deal when it comes to computing tax, and I was no different, and this being the first year that I was under taxation, so I started some online research as to what and how much tax do we need to pay. So I found this pretty cool tax calculator made my Nithyanand. I’d like to thank this person for making this pretty useful utility. So for those who want to know how much are they going to be taxed, you can go over to the website and download the tax calculator from there. Its in Microsoft Excel format and you just need to fill in the details. It has some sheets in the bottom with first being instructions, which are quite detailed and I’m sure you won’t have much problem in using it. Don’t forget to configure the details on the bottom right in the IT 2007-08 sheet.
Some important points regarding Income Tax for the financial year 2007-08:
In India, Individual income tax is a progressive tax with three slabs.
* No income tax is applicable on all income up to Rs. 110,000 per year. (Rs. 145,000 for women and Rs. 195,000 for senior citizens)
* From 110,001 to 150,000 : 10% of amount greater than Rs. 110,000 (Lower limit Rs. 145,001 for women and 1,95,000 to senior citizens)
* From 150,001 to 250,000 : 20% of amount greater than Rs. 150,000 & less than Rs.2,50,00(Rs 4,000+20% above amount 1,50,000 for Individual, For women: Rs. 500+20% above Rs 1,50,000 & 20% on above amount 1,95,000 to 2,50,000 For senior citizens, the lower limit is Rs. 195,000)
* Above 250,000 : 30% of amount greater than Rs. 250,000 + Rs. 24,000 (Rs. 20,500 for women and Rs. 11,000 for senior citizens)
All taxes in India are subject to an education cess, which is 3% of the total tax payable.