How Do You Calculate Your Taxable Income? Here Is A Step-By-Step Photo Guide

As FY25 ends, calculate your taxable income to know deductions and exemptions under the old tax regime. Follow these steps to reduce your tax liability and simplify the filing process.

Crunch the numbers carefully. Your taxable income is the key to accurate tax filing.

Find Out Your Total Income: Your financial journey begins with identifying your total income. It’s the sum of all earnings, more than just your salary. Include earnings from business, rental properties, and even interest on savings accounts | Photo: ABP Live AI

Know Your Deductions: The Income Tax Act offers numerous deductions to help you lower your taxable income. From Section 80C investments like PPF and ELSS to Section 80D health insurance premiums, these deductions can substantially reduce your liability | Photo: ABP Live AI

Turn Everyday Expenses Into Tax-Saving Opportunities: Claim tax exemptions for components like House Rent Allowance (HRA), gratuity, and Leave Travel Allowance (LTA). These exemptions are designed to reward essential spending and improve affordability | Photo: Canva (modified)

Apply Available Rebates: Section 87A provides tax rebates for individuals with income under specific thresholds, making it a vital step for those qualifying under the old or new regime | Photo: Canva (modified)

Now, Add It All Up: Subtract deductions and exemptions from your total income to calculate the taxable income. This number is the basis for your tax liability. Your taxable income is the key to accurate tax filing | Photo: Canva (modified)