How to Calculate your Income Tax ?

Here is the method to calculate your income tax manually. Very Simple, just a few calculations.
Slabs ---
Upto 1,50,000 ---- Nil.
1,50,001 to 3,00,000 ---- 10%.
3,00,001 to 5,00,000 ---- 20%.
5,00,001 & Above ---- 30%.

Besides these, there are two more calculation included depending on your salary--
Education Cess ---- 3% on the amount obtained from above calculation.
Surcharge on Income more than 10,00,000 ---- 10%.

Above slabs are subjected to male, non senior citizens only.

Thats it. Now you can calculate your income tax without any trouble.
eg - Income Tax for a salary of 10,00,000.
10% on 1,50,000 = 15,000.
20% on 2,00,000 = 40,000.
30% on 5,00,000 = 1,50,000.
Which gives you a total of 2,05,000.

Now 3% of Education Cess on 2,05,000 = 6150.
Since Surcharge is only for income greater than 10,00,000. So no need in this calculation.

Thus your income tax for salary 10,00,000 will be 2,05,000 + 6150 = 2,11,150.

Now there are ways to decrease the income tax amount you pay. Check out by next blog which i will be posting soon to know how you can save tax.