Section IV: Income Tax Basics
2. How much tax do I have to pay?
Add up all your income from the heads listed above. This is your gross total income. From your gross total income, deductions under Section 80 are allowed to be claimed. The resulting number is the income on which you have to pay tax.
Your tax is calculated as per the slabs mentioned below.
Income Tax Rates for taxpayers under 60 years of age in FY 2015-16, FY 2014-15 and FY 2013-14
| Tax Slab | FY 2015-16 FY 2014-15 Tax Rate | Tax Slab | FY 2013-14 Tax Rate |
|---|---|---|---|
| Upto Rs.2,50,000 | No Tax | Upto Rs.2,00,000 | No Tax |
| Rs.2,50,000 – Rs.5,00,000 | 10% | Rs.2,00,000 – Rs.5,00,000 | 10% |
| Rs.5,00,000 – Rs.10,00,000 | 20% | Rs.5,00,000 – Rs.10,00,000 | 20% |
| Rs.10,00,000 and beyond | 30% | Rs.10,00,000 and beyond | 30% |
| Surcharge: 10% of the Income Tax, where total income exceeds Rs.1 crore. | |||
| Education cess: 3% on sum of total income tax and surcharge. | |||
The minimum tax exemption limit for senior citizens — those who are 60 years or older — is at Rs.3,00,000 for FY 2015-16, FY 2014-15; and Rs.2,50,000 for FY 2013-14.
Rohit’s total taxable income for FY 2015-15 is Rs.8,00,000. How will the tax slabs be applied to him?
Rohit’s total taxable income for FY 2015-15 is Rs.8,00,000. How will the tax slabs be applied to him?
| Income up to Rs.2,50,000 | Nil |
| Income between Rs.5,00,000 – Rs.2,50,000 | 10% of (Rs.5,00,000 – Rs.2,50,000) = Rs.25,000 |
| Income between Rs.10,00,000 – Rs.5,00,000 | 20% of (Rs.8,00,000 – Rs.5,00,000) = Rs.60,000 |
| Total | Rs. 85,000 |
| Education Cess (3% on sum of total income tax) | Rs.2,550 |
| Tax Payable | Rs. 87,550 |
Section IV: Income Tax Basics
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