As responsible citizens of this country, it is our duty to pay taxes on time. But what we need to determine in this regard is how much we have to pay and where we can avail tax deductions.
Moreover, we need to keep an eye on tax rates and changes in tax forms which vary year to year. While the first-timers may find the whole thing to be a little hectic, calculation of taxable income is easy when you know where to start and what to consider while you are calculating tax returns for a financial year.
In this article, we sum up everything that you need to know for calculating Income Tax for 2018-2019.
Where to start?
Basically, one has to calculate income tax on the basis of his/her salary. There are a few income slabs and the rate of tax depends on the particular slab that your annual income falls into. Therefore, you need to calculate your total taxable income by applying the tax rate on your salary. The taxpayer needs to apply deductions such as LTA exemptions, HRA, investments, interest on home loan etc. on the total taxable income to find out the net taxable income