Understanding Income Tax Slabs, Deductions, and Investments for Tax Savings

Hi,

I am very bad with numbers. Even though I have sort of tried to understand the income tax deductions calculations for certain salary slabs, I have not completely grasped it. Can someone out there who understands the income tax slabs explain it in simple language that even I can understand? I have heard that the slabs for male and female employees are different. If yes, then by what scale? Where all can we invest for saving tax deductions?

Regards,
Shalini

Hi Shalini,

Income tax slabs: If your income is less than ₹1,10,000 - tax-free.
₹1,10,001-1,50,000 - Tax Rate is 10%.
₹1,50,001-2,50,000 - Tax Rate is 20%.
More than ₹2,50,001 - Tax Rate is 30%.

These slabs are as per the existing income tax applicable rates.

Goodbye,
Venu

Hi Shalini,

Please find the attachment. You can calculate Income Tax in a very easy manner. You just need to enter basic, HRA, Conveyance, etc. & PT for every month. The rest is calculated automatically, and finally, you will arrive at the income tax due for the year. Any investments like House rent, LIC, NSC, Mutual funds, etc., can be entered in this sheet, and tax is calculated automatically.

Hope this helps you to calculate Income Tax in a simple way.

Regards,
Madhu