Whether you are running a small business or a salaried person, it is important that you pay the tax on time, if falling under the slab. Income tax is a part of your responsibility which you need to pay every year. Usually tax is computed on gross total income, which is the sum of all heads of income, which involves your salary, capital gain income, etc.

If you are a first tax payer and have no idea on calculating the tax as per the slab, then here is how to file income tax to get maximum income tax exemption for more saving.
Understanding the basic structure-
There are different components involved in Income Tax. The basic structure is-
Gross Total Income:
1. Income from Salary
2. Income from House Property
3. Income from Capital Gains
4. Income from Business and Profession
5. Income from Other Sources
  • Less: Standard Deduction (if applicable)
  • Net income chargeable to tax
  • Tax liability calculated as per the applicable slab rates
  • Add: Surcharge
  • Add: Education and Secondary Education Cess
Tax liability
Age under tax slab- Residents of India, need to note the as per the IT Act. The age section in IT is categorized are- Individual, Senior citizen (attained 60 years or more age but less than 80 years in the previous year), and Super senior citizen (more than 80 yrs.)