Result:The tax amount for the income of 20.20 Lacs under the new tax regime in cellB7will be3.06 Lacs.Hence, Alex needs to pay4.185 Lacsas per the old regime and3.06 Lacsas per the new regime. Example #5: Tax Calculation Using Different Tax Slabs + Surcharge + Cess Let’s assume a ...
Think of your income stack as sitting alongside a second stack of “tax layers”, which we conveniently label as 0%, 20%, 40%, 45%. The heights of the layers are respectively, A, 32,000, 107,000, and then the top layer stretches to infinity. Almost all we need to do now is to...