# what is procedure for calculation of income tax?

i want to know procedure to calculate income tax, ie. income is 250000/- less 150000/- after that ?
please explain in brief

what is procedure for calculation of income tax?

## 6 Replies to “what is procedure for calculation of income tax?”

1. Anish M says:

Calculate 20% of the amount,and add 5% to it as education cess.

Contact me as a tax consultant on line.

Thanks.

2. Dragon says:

Hi Dear

If you invest 100000/- under section 80C of I Tax then you don’t have to pay any Tax.
If you don’t want to invest then
Upto 300000 the tax is 10% i.e. 300000 less 150000
for you it will work out to be 10000 plus 3% education cess i.e. 300
total 10300

3. APARNA says:

Details are given on the basis of current F.Y i.e.2008-09.

1.Total Income Rs.250000
less: deduction U/S 80C (max) Rs.100000
Taxable Income Rs.150000
I.Tax on on Income nil
2.Tax rates:
Tax payable:
1st on Rs.150000 nil
next on Rs.50000 @10% 5000
next on Rs.200000 @ 20% 20000
On balance @30% *****
3.Total I.Tax (A) *****
4.Add: Edu.cess @3% on Total tax(A)

Total tax liability(3+4)
I think your doubt will be cleared.

4. sudharar says:

The tax is calculated for male Individual(in case of Senior Citizen exemption limit is 180000)
Gross total Income =Rs250000
Less HRA(as per eligibility=Nil
Less Professional tax =Nil
Less Transport Allowance =NIl(Max 9600)
Less Children ed allowance=Nil(max 2400)
Net Taxable INcome =Rs250000
Add any other Income= RsNil
Less Dedcution under 80c &80ccc=Nil
balance taxable income= Rs 250000

Out of the above
On First 150000 tax is nil
on next 100000 tax is10%=10000
edcation cess is 3% on tax=300
your total taqxpaybale is 10300
See ready reckoner for 250000 under any other individual

5. meet says:

first of all in this cash totally income is tax free if 150000 is as per your instruction

Gross total Income =Rs250000

Less Professional tax =Nil
Less Children ed allowance=Nil(max 2400)
Net Taxable INcome =Rs250000 + any other Income
Less Deduction under 80c &80ccc = balance taxable income

this icalculation for 2008-09 = 110000 is not taxable
2008-09 = after 150000 is taxable