India

Individual - Sample personal income tax calculation

Last reviewed - 29 June 2020

Following is the example of computation of taxable income for an individual (below the age of 60 years).

Tax computation INR INR
Base salary 5,000,000  
Allowance 2,000,000  
Taxable perquisites 1,000,000  
Total salary and allowances (net of standard deduction)   8,000,000
Income from house property 500,000  
Short-term capital gain from immovable property 2,000,000  
Long-term capital gain from immovable property 500,000
  3,000,000
Total taxable income   11,000,000
Tax liability on income (other than long-term capital gains):    
Up to 250,000 0  
250,001 to 500,000 (250,000 at 5%) 12,500  
500,001 to 1,000,000 (500,000 at 20%) 100,000  
1,000,001 and above (9,500,000 at 30%) 2,850,000  
Subtotal tax 2,962,500 
Add: 20% tax on long-term capital gains (500,000) 100,000 
Total tax   3,062,500
Add: Surcharge (15% if income is between INR 10 million and INR 20 million) 459,375
Add: Health and education cess at 4% (on tax and surcharge) 140,875
Total tax liability   3,662,750