Income Tax Calculation FY 10-11 for Salaries Person

According to the Income Tax Act income of a person is computed in five parts and each part is known as "Head of Income". These heads are:

Income undere he head salaries:

Income from house property:

Profits and gains of business or profession:

Capital gains:

Income from other sources:

Total of income computed under various heads is called gross total income out of which deductions u/s 80C are allowed. The resultant figure is called total income. These heads of income are water tight compartments and income which is to be included under one head of income cannot be included under any other head of income.

Income tax is a tax paid by workers and employers on their income. There is no age limit for a person to be responsible for paying income tax. Income tax in India is charged depending on the type of income for the earned income such as pensions, social security income, income from own account of a business or profession, income property, savings and investment income and other miscellaneous income.
 

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