How much tax do I pay on 5 lakhs in India?
Table of Contents
How much tax do I pay on 5 lakhs in India?
Tax Rate for Individual Taxpayers for FY 2020-21 (AY 2021-22)
| Tax Slab | Old Rates | Tax / Old Rates |
|---|---|---|
| Income up to 2.5 Lakh | 0\% | |
| Income from 2.5 Lakh – 5 Lakh | 5\% | 12,500 |
| Income from 5 Lakh – 7.5 Lakh | 20\% | 34,000 |
| Income from 7.5 Lakh – 10 Lakh | 20\% |
Do I have to pay tax if my income is below 5 lakhs?
No income tax needs to be paid if your taxable income is below Rs 5 lakh, and yet there is a tax of 5\% on income above Rs 2.5 lakh. In other words, if your net taxable income does not exceed Rs. 5 lakh, you are eligible for a tax rebate up to Rs 12,500 under section 87A.
What will be the tax for 6.5 lakhs?
Assessing your Tax Slab 6.5 LPA would fall under the tax slab of 10\%. This flat tax rate is far lower than the tax slab that your salary of 6.5 LPA would fall under with the existing tax regime – 20\%.
What will be the income tax for 10 lakhs?
10 lakhs, here’s a sneak peek into the income tax slabs under the old and new tax regimes….Income Tax Slabs for individuals below 60 years – Old and New Tax Regimes.
| Income Tax Slab | ||
|---|---|---|
| New | Income | Old |
| 10\% | Rs. 5 lakhs to Rs. 7.5 lakhs | 20\% |
| 15\% | Rs. 7.5 lakhs to Rs. 10 lakhs | 20\% |
| 20\% | Rs. 10 lakhs to Rs. 12.5 lakhs | 30\% |
How is income calculated?
Simply take the total amount of money (salary) you’re paid for the year and divide it by 12. For example, if you’re paid an annual salary of $75,000 per year, the formula shows that your gross income per month is $6,250.
How do you calculate total income?
To know your total income sum up your annual income under all the five heads of income and account for the deductions under chapter VIA. The net result would be your total or net income.