How to calculate Your Income Tax in seven simple steps:

Step i: Determine your Gross Income
Gross Income = Monthly Income * 12

Step ii: Calculate your Donation/Charity amount (if any)
Donations here mean the amount given to some organization(s) as charity, which should be in conformity with the Income Tax Rules.

Step iii: Calculate your Savings
It includes all your savings and investments that are listed in the sections under Income Tax Rebates.

Step iv: Assess your Taxable Income
axable Income = Gross Income – (Donations/Charity + Savings)
OR
Step I – (Step II + Step III)

Step v: Calculating the Income Tax
Now that you have calculated your taxable income, you may refer to the Income Tax Slab for calculating the income tax.

Step vi: Add Surcharge
Add a surcharge of 10% of your annual income to the Income Tax that you have calculated in the preceding step. This will be your new income tax figure. (Note: This step is not applicable in case the annual income falls behind Rs. 10 lakhs)

Step vii: Adding the Education Cess
Make an addition of 3% of your taxable income (as the education cess) to the new income tax figure that you have calculated in Step VI above.

The figure reached after Step VII is your final INCOME TAX.


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