Question 1

How to calculate income tax on salary with example?

Accepted Answer

Example for ₹15 Lakhs Gross Salary: 1) Deduct ₹75,000 Standard Deduction -> ₹14.25L Taxable. 2) Apply Slabs: First ₹4L Nil, Next ₹4L @ 5% = ₹20k, Next ₹4L @ 10% = ₹40k, Remaining ₹2.25L @ 15% = ₹33,750. Total Tax = ₹93,750 + 4% Cess.

Question 2

Is income up to ₹12 Lakhs really tax-free?

Accepted Answer

Yes. If your taxable income (after regular deductions) does not exceed ₹12 Lakhs, you get a rebate of up to ₹60,000 under Section 87A, reducing your tax liability to zero.

Question 3

How to calculate surcharge and cess?

Accepted Answer

Health & Education Cess is 4% of the total tax amount. Surcharge applies only if income > ₹50 Lakhs (10% for 50L-1Cr, 15% for 1Cr-2Cr, 25% above 2Cr).

Question 4

How is tax calculated for Senior Citizens in New Regime?

Accepted Answer

In the New Regime, the basic exemption limit is ₹4 Lakhs for everyone, including Senior (60+) and Super Senior (80+) citizens. There are no special age-based slabs.