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How to calculate your income tax: For women
02:03 Mins Read
Get to know the key steps involved in calculating your taxes.
Up until financial year 2011-12, men and women had different income tax slabs in India, where women paid taxes at lower rates. From the financial year 2012-13, however, the tax slabs for both men and women were made equal. Nevertheless, if you’re a woman, here’s how you can calculate your income tax as per Indian laws. Firstly, calculate your total earnings from the five heads of income. That includes salaries, income from house property, business income, capital gains, and income from other sources - like bank interest. Secondly, choose between the old tax regime and the new tax regime. The old one has higher rates, but more deductions. The new tax regime has lower rates, but fewer deductions. Your total income minus the eligible deductions gives you your total taxable income. Then, calculate the tax based on the rates given in the income tax slabs. Check out the tax rates as shown on the screen now. Next, you need to check if you’re eligible for a tax rebate under section 87A. If your total taxable income is less than Rs. 5 lakh, you can claim a tax rebate up to Rs. 12,500. The amount remaining after the rebate is your tax liability. If you’ve already paid TDS exceeding your tax liability, you will be eligible for a refund. Make sure you file your Income Tax Return on time to receive the refund, if any. Up next, we have an interesting chapter on how homemakers can earn money. Check it out.