Understanding Taxes

TDS Rates Chart for Financial Year 2011 – 2012

For most salaried people tax is usually deducted at source(TDS) by the employer and deposited with the tax department. It is important to understand what TDS rates apply to you so that a better tax planning is done. The TDS Rates chart is provided below along with methods to calculate your tax liability.


Basic Tax Jargon

Financial Year, Assessment Year and Previous Year, do these commonly used income tax jargons often confuse you? This is what they mean.

  1. Financial Year (FY) – Duration of one year between 1st April to 31st March of the following year, in which all financial information are reported. The current financial year is 1st April 2011 to 31st March 2012.
  2. Assessment Year (AY) – The income of a particular financial year is assessed in the following financial year, which is known as the assessment year. For the current financial year, income will be assessed in the assessment year 2012 -2013.
  3. Previous Year (PY) – The financial year preceding the assessment year, the income of which is assessed in the following assessment year.  Assessment year 2012 -2013 will assess income for previous year 2011 -2012.


5 Easy Steps to Calculate your Tax

Calculating income tax is not any rocket science. The following 5 steps give you an idea of the process.

  1. Calculate your gross total income. This includes gross income from Form 16; and the taxable income from other sources.
  2. Calculate your net deductions, which may include, donations, investments and savings such as provident fund subscriptions, Life Insurance Premiums etc.
  3. Your net taxable income is gross total income minus net deductions.
  4. Apply the appropriate income tax slab to calculate your tax payable on aggregate income.
  5. Education Cess of 3% (2% education cess and 1% Higher education cess) is applied on the tax payable to arrive at the total tax payable. Relief under various sections would be applied on this total tax.


TDS Rates Chart

For example: Let us consider a net taxable income of Ravi as Rs. 8, 00,000.

As a male assessee, here’s how his tax is calculated.


Calculation (Please refer to the chart above for tax rates and surcharge) 

Tax up to Rs. 1,80,000: Nil

Tax on Rs.1,80,000 to Rs.5,00,000 @ 10%: 32,000

Tax on Rs. 5,00,000 to Rs. 8,00,000 @ 20%: 60,000

Total: 92,000

Educational Cess - 3% of Total Tax: 2,760

Net Tax Payable: 94,760


Tax Calculator


Published Aug 24 2011




Patel Hitesh Kumar Amrutbhai. said:

In above tax calculator system, If we find tax above 8.lack income then get 2060rs more,why.

August 26, 2011 8:09 AM

Vinod said:

Nice Utility !!

September 4, 2011 2:26 AM

H. Lokaprabhu said:

Its very nice

September 10, 2011 12:28 AM



September 14, 2011 4:33 AM

SANJAY said:


September 16, 2011 4:21 AM

melindadelon said:

Hi, Patel Hitesh Kumar Amrutbhai

You have mentioned that an error of Rs.2060 comes while using this calculator system.

It is because you have not calculated for the Assessable year 2012-2013 and instead just put 2011-12 as assessable year.  Hence the mistake and error.  

September 18, 2011 10:41 AM

Praveen said:


September 28, 2011 4:09 PM

bhavinushah@ymail.com said:

it is a nice data for new one who dont know about abc of tax rate.

thak you very much.

September 29, 2011 1:47 AM

Ravi said:


October 11, 2011 7:05 AM

Sanjay Bhatt said:

Very good description of it slab.

Quite easy to understand for frashers

October 12, 2011 7:28 AM

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