Thursday, February 08, 2007

Income Tax - Is the calculation so Taxing?

"The hardest thing in the world to understand is income tax" -Albert Einstein

If this is the case with a mortal having highest levels of IQ then imagine the plight of intelligent IT professionals like me :-). Well, being a M.B.A student of LIBA I had the opportunity to learn the art of tax calculation. As the saying goes;

"No education is complete if it is not applied for the upliftment of self and the society"

So, I just wanted to share with my readers the slab rates for Salaried professionals like me in India;

For the assessment year 2006-07, rates of Income‑tax in the case of individual assessees are divided into the following three categories:

a) resident individuals, who is of the age of 65 years or more (senior citizens) at any time during the previous year;

up to Rs. 1,85,000/‑Nil
above Rs. 1,85,000/‑ up to Rs.2, 50,000/‑20%
above Rs. 2,50,000/‑30%

b)resident individuals, being a woman, aged below 65 years;

upto Rs.1,35,000/-Nil
above Rs. 1,35,000/- up to 1,50,000/-10%
above Rs.1,50,000/- to 2,50,000/-20%
above Rs.2,50,000/-30%

c)other individuals (this is were I fit in)

upto Rs.1,00,000/-Nil
above Rs. 1,00,000/- up to 1,50,000/-10%
above Rs.1,50,000/- to 2,50,000/-20%
above Rs.2,50,000/-30%

Please note that the tax rates are applicable on the Income remaining after Deductions.

Hope this article was helpful. Until next time.....

Ciao.......

1 comment:

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