How to Calculate Income Tax in India – Simple Method

Many taxpayers find tax calculation confusing. However, calculating income tax becomes easy if you follow a simple process.

Step 1: Calculate Total Income

Add salary, business income, interest income, and other earnings.

Step 2: Subtract Deductions

Remove eligible deductions such as investments and insurance premiums if using the old regime.

Step 3: Apply Tax Slab

Apply applicable tax slab rates to remaining taxable income.

Step 4: Add Cess

Health and education cess is added to final tax amount.

You can also check which tax regime is better before calculating tax.

Conclusion

Following structured steps makes tax calculation easy and accurate.