Income Tax Calculation: After making up to Rs 12 lakh tax free under the new tax regime and introducing new tax slabs, many people want to know how much tax they will have to pay if their annual income is more than Rs 12 lakh. Easy calculation is given here.
Income Tax Calculation: Giving a big relief to the middle class, the government has made it tax free for those earning up to Rs 12 lakh per annum. This means that those earning up to Rs 12 lakh per annum will not have to pay tax. However, if the income is more than this, then tax will have to be paid according to the income tax slab.
That is, 0 tax on income from 0 to 4 lakhs
5% tax on income from 4 lakhs to 8 lakhs
10% tax on income from 8 lakhs to 12 lakhs
15% tax on income from 12 lakhs to 16 lakhs
20% tax on income from 16 lakhs to 20 lakhs
25% tax on income from 20 lakhs to 24 lakhs
30% tax will be levied on income above 24 lakhs.
To explain it to you in easy language, we have done the calculation on income above Rs 12 lakh like 15 lakhs, 20 lakhs and 25 lakhs, which you can understand in minutes. If your income is also more than Rs 12 lakhs, then let us know how much tax you will have to pay?
How much tax will be levied on an annual salary of Rs 15 lakh?
Since Rs 15 lakh is more than the income tax exemption limit of Rs 12 lakh under the new tax regime, tax calculation on an annual income of Rs 15 lakh will be done as per the tax slab.
After deducting standard deduction….
1500000- 75000 = Rs. 14,25000
0–4 0% = 0
4–8 5% = Rs. 20,000
8–12 10% = Rs. 40,000
12–16 15% = Rs. 33,750
- Total tax = Rs 93,750
- 4% cess on tax = Rs 3,750
- Net taxable income = Rs 97,500
Based on this calculation, a salaried person earning Rs 15 lakh per annum will have to pay a tax of Rs 97,500 under the New Tax Regime 2025.
How much tax will be levied on an annual income of 20 lakhs?
If your salary is 20 lakh rupees per annum, then you will also have to pay tax according to the tax slab. Let’s see through the calculation how much tax you will have to pay?
After deducting standard deduction….
20 lakh – 75000 = Rs 19,25,000
0-4 = Rs 0
4-8 = Rs 20,000
8–12 = Rs 40,000
12-16 = Rs 60,000
16-20 = Rs 65,000
- Total tax = Rs 1,85,000
- Cess of 4% on total tax = Rs 7400
- Net taxable income = Rs 1,92,400
On this calculation, the total tax on an annual income of Rs 20 lakh will be Rs 1,92,400.
Tax if the salary is Rs 25 lakh per annum?
If your salary is Rs 25 lakh per annum, then your taxable income will also be calculated according to the slab.
After deducting standard deduction….
25 lakh – 75000 = Rs 24,25,000
0-4 = Rs 0
4-8 = Rs 20,000
8–12 = Rs 40,000
12-16 = Rs 60,000
16-20 = Rs 80000
20-24 = Rs 1 lakh
Above 24 lakh = Rs 7,500
- Total tax = Rs 3 lakh 7 thousand 500
- 4% cess = Rs 12,300
- Net taxable income = Rs 3 lakh 19 thousand 800
Based on this calculation, if you earn Rs 25 lakh as annual salary, then you will have to pay tax of Rs 3 lakh 19 thousand 800 during a financial year.
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