What is procedure for calculation of income tax?

The tax is calculated for male Individual(in case of Senior Citizen exemption limit is 180000) Gross total Income =Rs250000 Less HRA(as per eligibility=Nil Less Professional tax =Nil Less Transport Allowance =NIl(Max 9600) Less Children ed allowance=Nil(max 2400) Net Taxable INcome =Rs250000 Add any other Income= RsNil Less Dedcution under 80c &80ccc=Nil balance taxable income= Rs 250000 Out of the above On First 150000 tax is nil on next 100000 tax is10%=10000 edcation cess is 3% on tax=300 your total taqxpaybale is 10300 See ready reckoner for 250000 under any other individual

first of all in this cash totally income is tax free if 150000 is as per your instruction Gross total Income =Rs250000 Less Professional tax =Nil Less Children ed allowance=Nil(max 2400) Net Taxable INcome =Rs250000 + any other Income Less Deduction under 80c &80ccc = balance taxable income this icalculation for 2008-09 = 110000 is not taxable 2008-09 = after 150000 is taxable

Hi Dear If you invest 100000/- under section 80C of I Tax then you don't have to pay any Tax. If you don't want to invest then Upto 300000 the tax is 10% i.e. 300000 less 150000 for you it will work out to be 10000 plus 3% education cess i.e. 300 total 10300

Read about India Income tax rates for financial year 2008-09 (assessment year 2009-10): http://mytaxes.in/index.php?topic=7.0

Calculate 20% of the amount,and add 5% to it as education cess. Contact me as a tax consultant on line. Thanks.