How to Compute Tax from Tax Slab Rates

Computation of Taxable Income for AY 2012-13.

Assessment Year 2012 -13

If person is individual and below 60 years and his total income after deductions is 12,00,000 :

Step 1: on calculator (12,00,000 – 8,00,000) = 4,00,000 *30% = Rs. 1,20,000

Step 2: then (8,00,000 – 5,00,000) = 3,00,000 *20% = Rs. 60,000

Step 3: then (5,00,000 – 1,80,000) = 3,20,000*10% = Rs. 32,000

Step 4: then add (Rs. 1,20,000+ Rs. 60,000+ Rs. 32,000) = Rs. 2,12,000

Step 5: then Rs. 2,12,000 *3% = Rs.
6360

Step 6: then (Rs. 2,12,000 + Rs.
6360) = Rs. 2,18,360

  • Net tax payble = Rs. 2,18,360

If person is a resident woman and below 60 years and her total income after deductions is 7,00,000 :

Step 1: On calculator (7,00,000 – 5,00,000) = 2,00,000 *20% = Rs. 40,000

Step 2: then (5,00,000 – 1,90,000) = 3,10,000*10% = Rs. 31,000

Step 3: then add ( Rs. 40,000+ Rs. 31,000) = Rs. 71,000

Step 4: then Rs. 71,000 *3% = Rs.
2130

Step 5: then (Rs. 71,000 + Rs.
2130) = Rs. 73,130

  • Net tax payble = Rs. 73,130

If person is a resident senior citizen (either man or woman) and above 60 years and his total income after deductions is 4,50,000 :

Step 1: then (4,50,000 – 2,50,000) = 2,00,000*10% = Rs. 20,000

Step 2: then Rs. 20,000 *3% = Rs.
600

Step 3: then (Rs. 20,000 + Rs.
600) = Rs. 20600

Net tax payble = Rs. 20600

2 thoughts to “How to Compute Tax from Tax Slab Rates”

  1. Please provide me detail of Income Tax deduction U/S 80CCF & 80TTA

    Thanks & Regards
    Deepak Sainani
    Jaipur

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