If you are wondering how to calculate your income tax, don’t worry, Nithya has an answer to that, with his superb tax calculator. I made a blog post for the last financial year too about the 2007-2008 Income Tax Calculator, so here is the new version of that for the 2008-2009 financial year. Get Nithya’s Tax Calculator and fill up the excel sheet with the various inputs you need to provide and it will calculate the tax. Its covers all the aspects of it and works great. I was not that aware about income tax last financial year, so I didn’t plan well. This time though, and with the help of this tax calculator, I’ve been able to plan my investments to save tax. Thanks a lot Nithya!
Here are the Income Tax Rates in India:
* No income tax is applicable on all income up to Rs. 1,50,000 per year. (Rs. 1,80,000 for women and Rs. 2,25,000 for senior citizens)
* From 1,50,001 to 3,00,000 : 10% of amount greater than Rs. 1,50,000 (Lower limit changes appropriately for women and senior citizens)
* From 3,00,001 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 + 15,000 (Rs. 12,000 for women and Rs. 7,500 for senior citizens)
* Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 + 55,000 (Rs. 52,000 for women and Rs. 47,500 for senior citizens)
Surcharge
A 10% surcharge (tax on tax) is applicable if the taxable income (taking into consideration all the deductions) is above Rs. 10 lakh (Rs. 1 million). The limit of 10 lacs was increased to Rs. 1 crore (Rs. 10 million) with effect from 1st June 2007 for corporate assessees.
Education Cess
All taxes in India are subject to an education cess, which is 3% of the total tax payable.
