India
Individual - Sample personal income tax calculation
Last reviewed - 07 June 2022Following 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 [other than long-term capital gains] is between INR 10 million and INR 20 million; and 15% on long-term capital gains) | 459,375 | |
Add: Health and education cess at 4% (on tax and surcharge) | 140,875 | |
Total tax liability | 3,662,750 |