Calculation 1: Let us take a case where an individual’s income is Rs.3,10,000.
- According to the Income Tax Slab, the first 1,50,000 is not taxable.
- The next Rs.1,50,000 is taxable @10%.
- 10% of Rs.1,50,000 is Rs.15,000.
- The remaining Rs.10,000 i.e. 3,10,000 - (1,50,000+1,50,000) = Rs.10,000 is taxable at 20% which is Rs.2,000.
- Therefore, the net Income Tax Payable is Rs.15,000 + Rs.2,000 i.e. Rs.17,000.
Calculation 2: Let us take a case where an individual is women and whose taxable income is Rs.3,40,000.
- According to the Income Tax Slab, the first 1,80,000 is not taxable.
- The next Rs.1,20,000 is taxable at 10%.
- 10% of Rs.1,20,000 is Rs.12,000.
- The remaining Rs.40,000 i.e. 3,40,000 - (1,80,000+1,20,000) = Rs.40,000 is taxable at 20% which is Rs.8,000.
- Therefore, the net Income Tax Payable is Rs.12,000 + Rs.8,000 i.e. Rs.20,000.
Calculation 3: Let us take a case where an individual’s income is Rs.3,10,000.
- According to the Income Tax Slab, the first 1,50,000 is not taxable.
- The next Rs.1,50,000 is taxable at 10% but he can get 1 Lakh exempted under 80C then the remaining 50,000 is taxed at 10% which is Rs.5,000.
- The remaining Rs.10,000 i.e. 3,10,000 - (1,50,000+1,00,000+50,000) =Rs.10,000 is taxable at 20% which is Rs.2,000.
- Therefore, the net Income Tax Payable is Rs.5,000 + Rs.2,000 i.e. Rs.7,000.