Confused About Tax Calculation on a 13 Lakh Salary? Let's Break It Down Together

Hi, I have a new offer for 13 lakhs. When I exclude the non-taxable components and my investments, the taxable income is 1,102,200. Do I need to calculate a flat 30% tax on this amount? Some say it is like: Tax up to Rs 5 lakhs = 32,000, 5-8 lakhs = 60,000, 8-13 lakhs = 150,000. The total would be 242,000. I need help as I am not sure how to calculate it.

Income Tax Slabs for Financial Year 2012-13

Income tax slabs for the current financial year are as follows:

Income Tax Slab for Financial Year 2012-13, Assessment Year 2013-14

For Men and Women Up to 65 years:
- Up to Rs. 2 lakhs: Nil
- From Rs. 2 lakhs to Rs. 5 lakhs: 10%
- From Rs. 5 lakhs to Rs. 10 lakhs: 20%
- Above Rs. 10 lakhs: 30%

There is also an Education cess of 3% on the same.

Thank you, Mr. Nilay. For a taxable income of 1,102,200:

- 0 to 2 lacs = nil
- 2 to 5 lacs = 30,000
- 5 to 10 lacs = 1,00,000
- 10 to 1,102,200 = 30,660

Total = 1,60,660 + 4,819 (3%) = 1,69,479 i.e., 13,789 per month.

Is this correct? Please confirm.

Please also provide details of your investments, LIC, children's school fees, etc. Only then will you be able to determine the actual taxable amount.

Dear Sherin, I have just uploaded a sample Excel sheet that explains how to calculate the tax. This will give you a clear picture of the income tax details.

Cheers,
Govindaraj

Hi, the tax calculation is okay, but the total will be Rs. 1,65,479/- and not Rs. 1,69,479/-.

The above-mentioned calculation is correct if the taxable amount is Rs. 11,02,200/-. The total amount of TDS to be paid is Rs. 1,65,479/-, i.e., monthly Rs. 13,790/-.