Income tax is deducted based on your taxable income and the slabs are given below for your reference.

Taxable income per annum (INR) ## Income Tax (%)
Up to 1,50,000
Up to 1,80,000 (for women) ## NIL
1,50,001 – 3,00,000

1,80,001 - 3,00,000 (for women)## 10

3,00,001 – 5,00,000 ## 20

5,00,001 upwards ## 30

Kindly note:

A surcharge of 10% is applicable on the total taxable income when the total taxable income exceeds INR 10,00,000 per annum.
An Education cess of 3% is applicable for all income slabs and is calculated including the surcharge mentioned above, if any.

Illustration 1

Scenario 1 –

If the taxable income of a male employee is INR 5,00,000 per annum, then based on the above tax rates his tax will be INR 55,000 (150,000 *0%+ 150,000*10%+ 200,000*20%).

An Education cess of 3% will be levied on INR 55,000 (applicable tax) and the total tax to be deducted would be INR 56,650 (INR 55,000 + 3% of INR 55,000).
Surcharge of 10% will not be applicable to this employee as his annual salary is below INR 10,00,000.

Scenario 2 –
If the taxable income of a female employee is INR 11,00,000 per annum, then based on the above tax rates her tax will be INR 235,000 (150,000 *0%+ 150,000*10%+ 200,000*20%+ 600,000*30%). A surcharge of 10% will be applicable on the tax liability and the tax would increase to INR 258,500 (INR 235,000 + 10% of INR 235,000).

In addition to this an education cess of 3% will be levied on INR 258,500 and the total income tax deducted would be INR 262,255 (INR 258,500 + 3% of INR 258,500).

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