Taxable Income

How do you calculate taxable income from taxes?

You can calculate their income tax based on the tax slab you fall under. Employees can take their gross income (which is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowances) and deduct the investments made under section 80C. And calculate taxes based on the tax rate (slab rate) you fall under.

What is taxable limit?

The taxable limit varies based on your income and the country you belong to. The Income tax exemption limit according to the Indian Government is up to Rs.2,50,000 for all individuals but is different for senior and super senior citizens.

What is the minimum salary to pay income tax?

In India, according to income tax slabs and rates, taxpayers can choose between two different tax regimes, the existing or old tax regime and the new, concessional one. Income tax is levied if your total taxable income is above Rs 2.5 Lakhs in both the regimes.

What type of income is not taxable?

Nontaxable income includes the following (According to the Income tax department of India):

• Agricultural Income.
• Scholarships.
• Interest earned on PPF and EPF.
• Long-term capital gains.
• Certain portions of HRA, LTA and leave encashments.
• Tax free bonds and certificates.
• Interest on savings and many more.

How can I reduce my taxable income?

Invest more in Medical Insurance, savings account, participate in employer-sponsored savings accounts for childcare, buy tax-exempted bonds, and any income that is non-taxable.