Taxes
Slab tax
Each band's rate applies only to the income that falls within it.
The Formula
Slab tax = sum of rate x income within each band
Each band's rate applies only to the income that falls within it.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| x | Taxable income | currency | Gross income less deductions. |
| r | Slab rate | rate | Rate applying to a band. |
| l | Band lower | currency | Lower bound of the band. |
| u | Band upper | currency | Upper bound of the band. |
What Each Symbol Means
xcurrency
Taxable income
Gross income less deductions.
rrate
Slab rate
Rate applying to a band.
lcurrency
Band lower
Lower bound of the band.
ucurrency
Band upper
Upper bound of the band.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate income tax india page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Income Tax India, filed under Finance. Every number the guide produces comes from substituting into this one line.