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India income tax slabs – explained

income tax indiaAs the financial year 2009-10 is approaching its end, we are loaded with the pressure of investments and reduce the Income tax liability. Income tax in India comprises of all income other than agricultural income.

According to Income Tax Act of 1961, all Residents* of India whose total income exceeds the exemption limit are chargeable to income tax.

The tax slabs for Resident* Indians are not same for all. The exemption for women residents and senior citizens are more than normal residents of India. Every financial year the tax slabs might change.

We will take 5 cases in each of the below scenarios to explain how the Income Tax is calculated.

  • Case A: Total income of the Resident Indian is Rs 1,10,000.
  • Case B : Total income of the Resident Indian in Rs 1,50,000.
  • Case C : Total income of the Resident Indian in Rs 2,00,000.
  • Case D : Total income of the Resident Indian in Rs 3,50,000.
  • Case E : Total income of the Resident Indian in Rs 5,50,000.

Tax slabs for Indian residents*

Serial No Taxable income slab (Rs.) Rate (%)
1 Up to 1,60,000 NIL
2 1,60,001 – 3,00,000 10% of amount by which the total income exceeds Rs. 1,60,000/-
3 3,00,001 – 5,00,000 Rs. 14,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
4 5,00,001 upwards Rs. 54,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

Tax Calculation for different cases for Indian resident*

Case Total Income Slab Applicable Tax Payable
A 1,10,000 1 NIL
B 1,160,000 1 NIL
C 2,00,000 2 = Rs(2,00,000-1,60,000) x 0.10
= Rs. 4,000
D 3,50,000 3 = Rs {14,000 + (3,50,000-3,00,000) x 0.20 }
=Rs 24,000
E 5,50,000 4 = Rs {54,000 + (5,50,000-5,00,000) x 0.30 }
=Rs 69,000

Tax slab for women residents* below 65years of age

Serial No Taxable income slab (Rs.) Rate (%)
1 Up to 1,90,000 NIL
2 1,90,001 – 3,00,000 10% of amount by which the total income exceeds Rs. 1,90,000/-
3 3,00,001 – 5,00,000 Rs. 11,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
4 5,00,001 upwards Rs. 51,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

Tax calculation for different cases for women below 65yrs:

Case Total Income Slab Applicable

Tax Payable

A 1,10,000 1 NIL
B 1,150,000 1 NIL
C 2,00,000 2 = Rs(2,00,000-1,90,000) x 0.10
= Rs 1,000
D 3,50,000 3 Rs {11,000 + (3,50,000-3,00,000) x 0.20 }
=Rs 21,000
E 5,50,000 4 Rs {51,000 + (5,50,000-5,00,000) x 0.30 }
=Rs 66,000

Tax slab for Senior citizen

Serial No Taxable income slab (Rs.) Rate (%)
1 Up to 2,40,000 NIL
2 2,40,001 – 3,00,000 10% of amount by which the total income exceeds Rs. 2,40,000/-
3 3,00,001 – 5,00,000 Rs. 6,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
4 5,00,001 upwards Rs. 46,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

Tax calculation for different scenarios for senior citizen:

Case Total Income Slab Applicable

Tax Payable

A 1,10,000 1 NIL
B 1,150,000 1 NIL
C 2,00,000 2 NIL
D 3,50,000 3 = Rs {6,000 + (3,50,000-3,00,000) x 0.20 }
=Rs 16,000
E 5,50,000 4 = Rs {54,000 + (5,50,000-5,00,000) x 0.30 }
=Rs 64,000

Please note :

1) A surcharge of 10% is levied on the total tax payable where the income exceeds Rs. 10,00,000.
2) An individual is referred to as Resident* Indian in a year when he/she is present in India for :

  • 182 days during the year OR
  • 60 days during the year and 365 days during the preceding four years.

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  1. TODAY IN INDIA THE INCOME TAX COLLECTION HAS NO SANCTITY AND CONCRETE SYSTAMATIC PROCEDURE ADOPTED RESULTING TO GLANCE AN DIM AND DULL ECONOMICAL SOUND PROGRESS OF COUNTRY.THEY IS A LOT OF IRREGULARITIES PREVAILED IN TAX COLLECTION IN VARIOUS SECTIONS OF PEOPLE IN OUR SOCIETY.IN ACTUAL SPEAKING SENSE, IT IS CONFIRMED THAT THE ONLY GOVT.,EMPLOYEES ARE SCAPE GOATS IN FRONT OF INDIAN GOVT., SCANED BY EGLE EYE TO PAY THE ANNUAL INCOME TAX INDIVIDUALLY.NO GOVT.,ADMINISTRATIVE FORCE INVESTIGATING ABOUT OTHERS TAX PAYMENTS IE.,POLITICIANS,IAS,IPS,BUISINESS AND CINIMA ACTORS.
    THEY SIMPLY SKIPED OFF BY THEIR POLITICAL INFLUENCE AND STORE THE BLOCK MONEY IN SWISS BANKS TO FEED THE FOREIGN GOVTS.,FOR WANT OF SELF HIGH FAT INTEREST PAYMENTS.TODAY THE OFFICIAL BLOCK MONEY ACTUALLY DEPOSITED IN SWISS BANKS AND INDIAN BANKS WITH OUT PAYING INDIAN INCOME TAX IS SAID TO BE AMOUNTING TO RUPEES IOO LAKH CRORES.IF WE DIVERT THE AMOUNT BLOCKED IN VARIOUS BANKS AROUND THE GLOBE BY OUR FELLOW INDIAN CULPRIT FRIENDS IN VARIOUS OFFICIAL SOCIAL STATUS.WE IN INDIA DEFFINITELY ROOT OUT PEOPLE POVERTY IN OUR COUNTRY AND ALSO GREAT SAID UN-EMPLOYEMENT WOULD HAVE BEEN SOLVED COMFORTABLY BY INDUSTRIALISATION THROUGHT-OUT INDIA LIKE FIRST RAISING SUN OF GLOBAL OCEAN ISLAND JAPAN.
    WE HAVE TO WAKE-UP NOW ITSELF BY SEEING JAPAN PROGRESS.ENTIRE GLOBE INCLUDING USA.,ASTONISHING BY OBSERVING JAPANESE INDUSTRIALISATION.
    HENCE,JAPAN IS A MODAL COUNTRY TO ALL GLOBIANS TO PROGRESS IN THE ENTIRE GLOBE.THE GLOBAL YOUGSTERS TODAY FATE FOR STRUGGLE FOR EXISTENCE ON THE EARTH IS DEPEND UPON GLOBAL INDUSTRIALISATION ONLY.BUT NO OTHER GO TO SOLVE THE UN-EPLOYEMENT IS VOICED.
    SO,I REQUEST ALL GLOBIANS TO PAY A SERIOUS ATTENTION ON THIS ISSUE AND PROTECT AND GAURD HUMANITY AND OUR GLOBAL YOUNGSTERS FUTURE AND CREATE HEAVEN ON EARTH IN THE CENTURIES TO BE INVITED IN FUTURE BY BLESSING OF OUR GREAT UNIVERSAL BOSS GOD.
    WISH YOU ALL GLOBIANS FUTURE DEVINE GREAT EXPECTATIONS LIFE GAME.

    HARI VSRC SHARMA.,CEO.,BE.,C.ENGG.,
    UNIVERSAL CREATURES LIFE AFFAIRES ADVISOR.