Income Tax – Net amount payable after filing the retrn for year 2013-14

How do you calculate tax payable on total income?

Now, one pays tax on his/her net taxable income.

1. For the first Rs. 2.5 lakh of your taxable income you pay zero tax.
2. For the next Rs. 2.5 lakhs you pay 5% i.e. Rs 12,500.
3. For the next 5 lakhs you pay 20% i.e. Rs 1,00,000.
4. For your taxable income part which exceeds Rs. 10 lakhs you pay 30% on entire amount.

How do you calculate net tax payable or refundable?

To determine the net tax payable on your taxable income, use this formula:

1. Assessable income – allowable deductions = Taxable income.
2. Taxable income x relevant marginal tax rate = Tax payable on taxable income.
3. Tax payable – non-refundable tax offsets = Net tax payable on taxable income.

How do you calculate net income after taxes?

How to calculate net income

1. Determine taxable income by deducting any pre-tax contributions to benefits.
2. Withhold all applicable taxes (federal, state and local)
3. Deduct any post-tax contributions to benefits.
4. Garnish wages, if necessary.
5. The result is net income.