2.1 Withholding of income tax

Commentary

2.1.2 Average rate of income tax

India
India | Commentary

2.1.2 Average rate of income tax

India | Commentary

2.1.2     Average rate of income tax

After the annual income is ascertained and the tax is determined based on the income tax slabs, the average rate of income tax for a given financial year is arrived at as follows:

Income tax payable including Health & education cess x 100

Estimated annual income

For instance, for an employee below 60 years of age with annual income of INR 1,200,000, the average rate of income tax as per the existing tax regime* will be computed as follows:

Table 5A
ParticularsParticularsTax RateINR
Monthly Income(A)100,000
Annual Income(B) = (A) x

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial