Income Tax slab for salary

Most tax payers are happy after the frst budget of the Modi government. As
per the expected lines, there was some relief to all cross section of the tax
payers.
What is income tax slab for salary?
Income tax is calculated on a slab system. There are 3 tax rates of !", #!"
and 3!" in India. $elow given are the various income tax slabs for salary.
%lease see the below given chart giving income tax slabs for the &' #!()*
for all those who are aged upto +!. ,$oth for male and female tax payers-
Income Tax Slab Tax
upto #.* .a/hs 0o Tax
#*!!! 1 *.a/hs !" for the amount in excess of #.* la/hs
*!!!!) ! .a/hs #*,!!!2 #!" for the amount in excess of * .a/hs
Above ! la/hs ,#*,!!! 2 3!" for the amount in excess of ! .a/hs
&or senior citi3ens aged +! but below 4! the frst slab of no tax goes upto 3
.a/hs and for very senior citi3ens aged 4! and above, the frst slab of no tax
goes upto * .a/hs.
There is an education cess of 3" on the income tax in all cases. The tax
credit of #!!! announced last year is available for the current year also if
your income is upto * .a/hs. Also, there is a surcharge of !", if the income
is above 5rore.
.et us wor/ out the income tax liability with some examples.
1. Taxable income of 4.25 Lakhs
'ou need not pay any tax upto #.* la/hs. &or the amount in excess of #.*
la/hs ,(, #*,!!! )#, *!,!!! 6 , 7*, !!!- you have to pay tax at the rate of
!". 'our tax will be 7,*!! in this case. Also add 3" education cess on the
income tax of 7,*!!. 8ith this *#*9) your total tax outgo will be 4!#*9) in
this case.
2. Taxable income of 8.5 Lakhs
:ere also, there is no tax on the frst #.* la/hs. Then for the income between
#.* la/hs and *la/hs, your tax rate will be !" and for the amount above *
la/hs the tax rate will be #!". The calculation will be as follows.
&irst #.* la/hs 6 0il, #, *!,!! 1 * .a/hs 6 #*, !!!, *, !!,!! 1 4.* .a/hs 6
7!,!!!
;o, the total tax will be <*!!!. Also add 3" education cess on <*,!!!. ;o,
the total tax outgo will be <7,4*!.
3. Taxable income of 13 lakhs
:ere, the tax calculation will be as follows.
&irst #.* la/hs 1 0il, #, *!,!! 1 *.a/hs 1 #*,!!!, *, !!,!! 1 ! .a/hs 1 ,
!!,!!!
!, !!,!! 1 3 .a/hs 1 <!,!!!
;o, the total tax will be #, *,!!!. Also add 3" education cess of 3" on #.*
.a/hs. The total tax outgo will be #, #,(*!.
oncl!sion
%lease note that the taxable income is the income after allowing permissible
deductions under various sections li/e ;ection 4!5, ;ection 4!= etc. If you
plan in advance and avail various tax exemptions, you may get tax benefts
by lowering your income tax slab for salary. An updated /nowledge on
income tax slab for salary is a must to get the best out of it year after year.