Question on income tax.?

If my taxable income is 55,000 for the year, and my tax rate is 30% how much imcome tax do I owe? It's for homework, don't tell me the answer, just how you do it please. =)

If your taxable income is just Rs.55,000, then it will attract only 10% & 20% tax. If your taxable income Rs.55,000 @30%, means your yearly income is Rs.3,05,000. Then only your Rs.55,000 will attract 30% taxable rate. You may ba a male, female or seniour citizen. This applies to all.

Tax for the current FY:2007-08 (A.Y: 2008-09)
Statue-------------- Tax+3% Edu=Tot.Tax
Male or HUF---= 40,500+810=41,310
Female----------= 37,000+740=37,740
Seniour Citizen=27,500+550=28,050

Would you conclude that this is a simple multiplication problem? Is it more than that?

Multiply $55,000. times .3 and you will get the answer you are trying to find.

How do you know that the $55,000 is "Taxable Income"?

First you work out taxable income.

Multiply your monthly income by 12 to get annual income. Income from 1.4. of a year to 31.3. of next year is to be included.

Take into account all interest earned on SB deposits, Fixed deposits and monthly income schemes, if you have put your money there.

Now you add up all sources of income to get Gross Income.

From this you deduct savings done in the form of Life Insurance premia, PPF payments, deposits in Employees Provident Fund account etc. subject to a maximum of Rs. 1 lakh only.

The remaining amount is your taxable income.

On the first 1,10,000 there is no tax.
On the next 40000 the tax rate is 10 per cent.
On the excess over 1,50,000 the taxation rate is 20%.

Now, you do your homework.