How To Calculate Income Tax?

Calculation for Salaried person
The entire remuneration of an employee is calculated as Basic pay plus HRA, Special Allowance, Transport Allowance, and any other supplementary components. Your leave travel allowance, HRA, and other parts of your pay are tax-free when deducted from this wage.
So, it is imperative that you have your pay stubs on hand and are aware of all the components of your compensation in order to compute your total income tax.
Also, you should be prepared with all investment-related documentation so that you can compute your taxes after taking advantage of all applicable exemptions and deductions.
With the use of an example, let's learn how to calculate taxes using both the new and old tax regimes: -
Income from Salary - 9,20,000 after HRA and LTA benefits
20,000 in other sources of income
Deduction u/s 80C - 1,50,000,Deduction u/s 80D - 25,000,Deduction u/s 80CCD(1B) - 50,000.
Hence, the total taxable income would be 6,65,000
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