Income Tax info & Calculator 2008 - 2009

Below given are the different tax slabs information. Please check which category you fall into. 

Your income                                    -      Tax liability(%)

General:

Rs  0 -  1,50,000                              -   Nill
Rs. 1,50,001 – Rs. 3,00,000           -   10%
Rs. 3,00,001 – Rs. 5,00,000           -   20%
Rs. 5,00,001 – Rs. 10,00,000        -    30%

Women:

Rs 0 -  1,80,000                              -   Nill
Rs. 1,80,001 – Rs. 3,00,000          -    10%
Rs. 3,00,001 – Rs. 5,00,000          -    20%
Rs. 5,00,001 – Rs. 10,00,000        -    30%

Senior citizen(65 years or above):

Rs   0 -  2,25,000                                -   Nill
Rs. 2,25,001 – Rs. 3,00,000            -    10%
Rs. 3,00,001 – Rs. 5,00,000            -    20%
Rs. 5,00,001 – Rs. 10,00,000          -    30%

Note:

1. A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000 for all the categories mentioned above.
2. Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.

Here I am explaining by taking an example:

If  your Income is 5, 60, 000 per year  and if you fall under general category.

Then your tax liability will be as explained below

Rs 0 - 1,50, 000           -  No need to pay any tax

Rs 1,50,001  - 3,00,000   -  10% tax i.e. 10% tax on 1,50, 000        and     

Rs 3,00,001  - 5,00,000   -  20% tax i.e. 20% tax on 2,00, 000        and     

Rs 5,00,001  - 5,60,000   -  30% tax i.e. 30% tax on 60, 000

Tax = 15000 + 40000 + 18000 = 73000.

Plus, you need to pay 3% educational cess on Rs 73000 i.e Rs 2190. So your total tax liability is Rs 75,190

Wait, you can save some amount of tax by investing your money in instruments specified in section  80 (C)   like  Provident fund, ELSS mutual funds, NSC bonds, fixed deposits, Life Insurance, House loan principal etc.  Interest on house loan principal is exempted from tax as per section 24(B). Amounts donated to recognized charitable trusts are exempted as per section 80 (G).  The maximum amount that can be exempted under section 80(C) is 1,00,000. Say if you have taken a home loan for which you are repaying Rs 1 lakh as principal and paying Rs 1lakh as interest on house loan . Then your taxable income is 3.6 L. Now calculate the tax using the above method for 3.6 L income. For first 1.5 L  there won’t be any tax. 10 % tax on next 1.5 lakhs and 20 % on the other 0.6 lakhs.  Detailed posts would be covered on important income tax sections.

If you want to calculate the income tax for FY 2008 - 2009 near to perfect figure, here is a great tool.  Download the latest version (just an excel sheet) & Try giving all the information and it will give your tax liability details.

Here is another tool  from Income Tax department. This is just an online tool. You can find this here

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January 31, 2009 | Filed Under Income Tax 

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