How much tax will you pay?
If you are a male and not a senior citizen the first Rs 1 lakh of your total income (from all the sources except short-term capital gains) will be tax-free. Beyond that, the following tax rates would apply:
| Income slab | Tax rate % |
| Rs 1,00,000 | 0 |
| Rs 1,00,000 to Rs 1,50,000 | 10 |
| Rs 1,50,001 to Rs 2,50,000 | 20 |
| Rs 2,50,001 and above | 30 |
In addition, you will have to pay an education cess of 2%. This will be calculated on your tax amount.
If you are earning an income of over Rs 10 lakh, you will also have to pay a surcharge of 10%, over and above the education cess.
Will you file a return of income?
If you have income greater than Rs 1,35,000, you would have to file return of income from the year 2006-2007. Prior to that year, you would have to file return of income if you qualified under the one-by-six scheme. One by six was a criterion that needed to be met when you file your returns. In simpler terms, if you fulfilled any one of the six criteria, you would have to file a return of income tax even though your income maybe below the tax-free limit of Rs 1 lakh. The six criteria were electricity bill over Rs 50,000, travel abroad, credit card, car, immoveable property, and club membership.
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