How is net income calculated?

What is Income Tax. How is it calculated. How can we avoid Income Tax.?

• What is Income Tax. How is it calculated. How can we avoid Income Tax.

• Answer:

  Income Tax is the tax levied by the govt. on the total income of an individual, Huf, Firm, Partnership Firm, Pvt Company, Public Company. Calculation of income tax * Tax Exemption limit for salaried persons - up to Rs. 2 lakh. * Tax Exemption limit for senior citizen - up to Rs. 2.5 lakh. * Tax on income between Rs. 2 to 5 lakhs - 10 %. * Tax on income between Rs. 5 to 10 lakhs - 20%. * Tax on income over Rs. 10 lakhs - 30%. * Housing Loan exemption (retained) - Rs. 1.5 lakh. * Corporate tax - 30% (including Cess, Surcharge. * Capt Gains tax - unchanged. * 20% MAT to be levied on book profits instead of gross assets. there is no way to avoid income tax