How Income Tax Return is calculated on salary in India - Tax Craft Hub

In India, Income Tax Return (ITR) on salary is calculated based on the total income earned by an individual during a financial year. The salary income, which includes basic pay, allowances, bonuses, and other perquisites, is taxed according to the income tax slabs prescribed by the government. These slabs vary depending on the age of the taxpayer (below 60, between 60-80, and above 80). After considering allowable deductions under sections such as 80C, 80D, and others, the net taxable income is determined. The tax liability is then calculated based on the applicable tax rates, and any advance tax or TDS (Tax Deducted at Source) already paid is deducted to determine the final amount payable or refundable. Filing the ITR ensures compliance with tax laws and enables the taxpayer to claim refunds or carry forward losses.

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