{"id":7970,"date":"2023-08-29T02:33:10","date_gmt":"2023-08-29T02:33:10","guid":{"rendered":"\/blog\/?p=7970"},"modified":"2024-07-04T14:12:47","modified_gmt":"2024-07-04T08:42:47","slug":"check-out-the-steps-to-calculate-income","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-home\/check-out-the-steps-to-calculate-income\/","title":{"rendered":"Check Out the Steps to Calculate Income"},"content":{"rendered":"\n<p>Regardless of your income or occupation, filing income tax on time is a significant financial responsibility. The criteria for income tax varies based on differences in salaries, expenditures, investments and savings. Read on to know more about eligibility and calculation of income tax in India.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">Know More<\/a><\/div>\n\n\n\n<p><strong>1. Who Pays Taxes?<\/strong><\/p>\n\n\n\n<p>Income tax is levied on anyone who has been in India\nfor:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>182 days during the previous\nfinancial year<\/li>\n\n\n\n<li>60 days for the last fiscal year\nand 365 days in the past 4 fiscal years<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"400\" src=\"\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-1.jpeg\" alt=\"Who Pays Taxes?\" class=\"wp-image-7974\" srcset=\"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-1.jpeg 770w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-1-300x156.jpeg 300w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-1-768x399.jpeg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p><strong>2. Classification of Income Sources<\/strong><\/p>\n\n\n\n<p>The\nIncome Tax Act allows a person in India to have income from 5 different types\nof sources:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Income from Salary<\/li>\n\n\n\n<li>Income from Capital Gains<\/li>\n\n\n\n<li>Income from House Property<\/li>\n\n\n\n<li>Income from Business or\nProfession<\/li>\n\n\n\n<li>Income from Other Sources<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"400\" src=\"\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-2.jpeg\" alt=\"Income Sources Classification\" class=\"wp-image-7975\" srcset=\"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-2.jpeg 770w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-2-300x156.jpeg 300w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-2-768x399.jpeg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p><strong>3. Steps to <\/strong><\/p>\n\n\n\n<p>To\ncalculate the amount of taxable income from salary, follow the steps mentioned\nbelow:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Refer to your salary slips or Form\n16 provided by your employer. Add all the payments, including TA, DA, DA on TA,\nHRA, and basic salary.<\/li>\n\n\n\n<li>If you have received any bonuses\n(TVP-ex gratia), add those as well<\/li>\n\n\n\n<li>The total of these additions is\nyour gross salary. Once you have deduced it, deduct HRA, transport allowance\nand medical reimbursements from it.<\/li>\n\n\n\n<li>The resulting amount is your net\nincome.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"400\" src=\"\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-3.jpeg\" alt=\"Calculate Taxable Income\" class=\"wp-image-7976\" srcset=\"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-3.jpeg 770w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-3-300x156.jpeg 300w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-3-768x399.jpeg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p><strong>Additional Read<\/strong>:- <a title=\"Has the Budget Simplified the Income Tax Regime or Complicated it?\" href=\"https:\/\/tata-blog.osian.dev\/blog\/wealth-management\/has-the-budget-simplified-the-income-tax-regime-or-complicated-it\/\">Has the Budget Simplified the Income Tax Regime or Complicated it? <\/a><\/p>\n\n\n\n<p>If\nyou have other sources of income, you will need to add the net taxable income\nfrom those sources to your income from salary. The resultant amount will be\nyour Gross Total Income. Usually, total gross income is classified into two\nparts, one of which is subject to normal taxes while the other comes under\nspecial tax slabs.<\/p>\n\n\n\n<p>Sometimes, factors like home loans or other financial obligations or investments can make you eligible for deductions under sections 80C and 80U of the Indian Income Tax Act. After deducing your gross total income, claim all deductions on it as applicable.<\/p>\n\n\n\n<p>If\nthe amount of deductions you claim exceeds the gross total income, the\ndeductions will be equal to the gross total income itself. Note that only\nNormal Income is subject to deductions.<\/p>\n\n\n\n<p>Subtract\nthe deductions claimed under Chapter VIA of the Income Tax Act from your gross\ntotal income. The resultant will be your taxable income.<\/p>\n\n\n\n<p><strong>4. Tax Slabs<\/strong><\/p>\n\n\n\n<p>The\nfollowing are the tax slabs applicable to different incomes for people aged 60\nand below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>For income up to Rs. 2.5 lakhs,\nno tax has to be paid.<\/li>\n\n\n\n<li>For incomes between Rs. 2.5\nlakhs \u2013 5 lakhs, the tax rate applicable is 5% on Total Income. A tax rebate of\nRs. 12,500 is applicable under section 87A.<\/li>\n\n\n\n<li>For incomes between 5 lakhs to\n7.5 lakhs, 10% of total income.<\/li>\n\n\n\n<li>For incomes between 7.5 lakhs to\n10 lakhs, applicable tax rate is 15%.<\/li>\n\n\n\n<li>For incomes between 10 lakhs to\n12.5 lakhs, tax rate applicable is 20%.<\/li>\n\n\n\n<li>For incomes between 12.5 lakhs\nto 15 lakhs, applicable tax rate is 25%.<\/li>\n\n\n\n<li>For incomes above Rs. 15 lakhs,\na 30% tax rate is applicable.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"770\" height=\"400\" src=\"\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-4.jpeg\" alt=\"Tax Slabs\" class=\"wp-image-7977\" srcset=\"https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-4.jpeg 770w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-4-300x156.jpeg 300w, https:\/\/tata-blog.osian.dev\/blog\/wp-content\/uploads\/2020\/03\/steps-to-calculate-income-4-768x399.jpeg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/figure>\n\n\n\n<p>Loans such as property loans constitute an essential part of IT returns. If you are planning to buy a house, opt for Tata Capital&nbsp;<a title=\"Home Loan\" href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">home loan<\/a>. Tata Capital offers affordable housing finance with&nbsp;<a href=\"https:\/\/tata-blog.osian.dev\/home-loan\/rates-and-charges.html\">home loan interest rates<\/a>&nbsp;starting at 9.25%. To plan financial planning, use our&nbsp;home loan EMI calculator&nbsp;to gauge EMI and interest. Visit our <a href=\"https:\/\/tata-blog.osian.dev\/\">website<\/a> to check&nbsp;home loan eligibility&nbsp;details or contact our representatives today.<\/p>\n\n\n\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-vivid-cyan-blue-background-color has-background wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/home-loan.html\">Apply For Home Loan<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Regardless of your income or occupation, filing income tax on time is a significant financial responsibility.  <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/home-loan\/check-out-the-steps-to-calculate-income\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":7973,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[25],"tags":[],"class_list":["post-7970","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-home"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - 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