Taxable Income

All income is considered as taxable, with some tax deductions and exemptions not included under the taxable income. This is applicable for all individuals, companies, Hindu Undivided Families (HUF), local authorities, body of individuals, etc.

What is Taxable Income?

Taxable income is the base income upon which tax is levied. It includes some or all items of income and is reduced by expenses and other deductions. The amounts included as income, expenses, and other deductions vary according to the country and the system in the country. Usually, all income is considered as taxable income, but some income have tax exemptions and deductions and hence won’t be included under taxable income.

Taxable Income in India

The taxable income in India is levied on all individuals including Hindu Undivided Families (HUFs), companies, firms, body of individuals, local authority and any other artificial judicial person. The tax levied on every individual is different depending on their income. The tax levied is governed by Indian Income Tax Act, 1961.The income tax received by taxpayers is the main source of funding for the public services in the country.

How to Calculate Taxable Income?

Calculating taxable income is very easy and hassle free. To calculate the income tax to be paid, the customer has to add up all the income received and the tax liability is then reduced by deductions and exemptions.

The official website of Income Tax India has a tax calculator on their website which is available to the public. The customer can use the tax calculator by providing a few details to calculate their income.

Listed below are few details that need to be filled out while calculating the tax:

  • Assessment year
  • Tax payer
  • Residential status
  • Income from salary
  • Income from house property
  • Capital gains
  • Income from other sources
  • Profits and gains
  • Agricultural income
  • Deductions

Examples of Taxable Income

Listed below are some of the examples of taxable income.

  • Wages
  • Salary
  • Bonus
  • Annuity
  • Alimony
  • Discounts
  • Dividends
  • Employee awards
  • Interest
  • Fee
  • Hobby income

Taxable Income Slab Rates

Listed below are the income tax slab rates for the year 2021-2022. The taxable income slab rates differ for each category.

For Male Individuals and HUF Individuals who are below 60 years:

Taxable Income Slab

Taxable Income Rates

For total income below Rs. 2,50,000


For total income between Rs.2,50,000 and Rs.5,00,000


For total income between Rs.5,00,000 and Rs.10,00,000


For income that exceeds Rs.10,00,000


Individual aged above 60 years to 80 years

Taxable income slab

Taxable income rates

For total income Rs. 0 - Rs. 3.00 lakh


For total income between Rs 3.00 lakh- Rs 5.00 Lakh


For total income between Rs 5.00 lakh – Rs 10 Lakh


For income that exceeds Rs.10 Lakh


Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

This Page is BLOCKED as it is using Iframes.