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


  1. 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


  2. 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.


  3. 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


  4. 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






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