Understanding Income Tax: How This Simple Calculator Helps Salaried Employees Plan Better

Simple Income Tax Calculator and Flexi Allocation Kit

This kit is designed for salaried employees in both government and private sectors, based on the Finance Bill 2015.

Tax Slabs

Rates for Individuals Below 60 Years

- **Income Slabs** | **Income Tax Rate**
- Income up to Rs. 2.50 lakhs: Nil
- Rs. 2.50 to Rs. 5 lakhs: 10%
- Rs. 5 Lakhs to Rs. 10 Lakhs: 20%
- Rs. 10 lakhs and above: 30%

Rates for Individuals Aged 60 to 80 Years

- **Income Slabs** | **Income Tax Rate**
- Income up to Rs. 3 lakhs: Nil
- Rs. 3 to Rs. 5 lakhs: 10%
- Rs. 5 Lakhs to Rs. 10 Lakhs: 20%
- Rs. 10 lakhs and above: 30%

Rates for Individuals 80 Years & Above

- **Income Slabs** | **Income Tax Rate**
- Income up to Rs. 3 lakhs: Nil
- Rs. 3 to Rs. 5 lakhs: Nil
- Rs. 5 Lakhs to Rs. 10 Lakhs: 20%
- Rs. 10 lakhs and above: 30%

A surcharge of 12% on income tax applies to those whose taxable income exceeds Rs. 1.00 crore. An education cess of 3% will apply on the income tax and surcharge for all.

Deductions

Section 80C provides a deduction for various savings schemes up to Rs. 1.50 lakhs, with an additional deduction of Rs. 50,000 towards investment in NPS under 80CCD (1b).

Income tax calculator for the FY 2017-18 enclosed. Please review.

Regards,
Benny