How to Calculate Income Tax

Income Tax Act has categorized all Income Tax Payers (Individuals) into 3 different types:

1. Ordinary Individuals
2. Female Citizens
3. Senior Citizens

 1. Ordinary Individuals: as per the applicable tax laws, the Income tax rates for ordinary individuals are:

*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs. 1,000,000.

• Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
• A marginal relief may be provided to ensure that the additional IT payable, including surcharge,

         on excess of income over Rs 1,000,000 is limited to an amount by which the income is more

         than this mentioned amount.

• Agricultural income is exempt from income-tax.

2. Female Citizens: as per the applicable income tax laws, the income tax rates for female citizens are:

*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs. 1,000,000.

 Note: -

• Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
• A marginal relief may be provided to ensure that the additional IT payable, including surcharge,

        on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than

        this mentioned amount.

• Agricultural income is exempt from income-tax.

 3. Senior Citizens: as per the applicable tax laws, the Income tax rates for Senior Citizens are:

*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs. 1,000,000.

 Note: -

• Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any.
• A marginal relief may be provided to ensure that the additional IT payable, including surcharge,

         on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than

        this mentioned amount.

• Agricultural income is exempt from income-tax.