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Income Tax Calculator using Python

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In this article, We’ll create a Python program that determines the income tax owed on a specific quantity of money. Please be informed that the income tax slabs are changed every year. Since income taxes vary from nation to nation, we have created a program that solely supports the Indian format and uses India as the country for tax calculation.

Tax slabs for AY 2022-23

AMOUNT                             INCOME TAX RATE
Up to ₹2,50,000                     0%
₹2,50,001 – ₹5,00,000           5% above ₹2,50,000
₹5,00,001 – ₹7,50,000           10% above ₹5,00,000 + ₹12,500
₹7,50,001 – ₹10,00,000         15% above ₹7,50,000 + ₹37,500
₹10,00,001 – ₹12,50,000       20% above ₹10,00,000 + ₹75,000
₹12,50,001 – ₹15,00,000       25% above ₹12,50,000 + ₹1,25,000
Above ₹15,00,001                  30% above ₹15,00,000 + ₹1,87,500

Python Program to Calculate Income Tax 

In this program, we will take annual income from the user as input after that we will pass that data to compare the Tax slab with different if-else conditions. After comparing we will calculate the tax and return it to that function to print the calculated Tax on that Income.

Python3

def calculate(amount, percent):
    return (amount * percent) / 100
  
def calculate_income_tax(total_income: 
                         float) -> float:
  
    if total_income <= 250000:
        return 0
    elif total_income <= 500000:
        return calculate(total_income - 
                         250000, 5)
    elif total_income <= 750000:
        return calculate(total_income - 
                         500000, 10) + 12500
    elif total_income <= 1000000:
        return calculate(total_income - 
                         750000, 15) + 37500
    elif total_income <= 1250000:
        return calculate(total_income - 
                         1000000, 20) + 75000
    elif total_income <= 1500000:
        return calculate(total_income - 
                         1250000, 25) + 125000
    else:
        return calculate(total_income - 
                         1500000, 30) + 187500
  
  
if __name__ == '__main__':
    total_income = float(input("What's your \
                    annual income?\n>>> "))
    tax = calculate_income_tax(total_income)
    print(f"Total tax applicable at \
                    ₹{total_income} is ₹{tax}")

                    

Input 1: When your income is ₹1,00,000 which is less than ₹2,50,000 then the tax should be ₹0

Output:

Income Tax Calculator using Python

 

Input 2: When the income is ₹3,00,000 which is more than ₹2,50,000 then the tax should be ₹2,500

Output:

Income Tax Calculator using Python

 

Input 3: When the income is ₹7,00,000 which is more than ₹5,00,000 then the tax should be ₹32,500

Output:

Income Tax Calculator using Python

 

Input 4: When your income is ₹1,00,00,000 which is more than ₹15,00,000 then the tax should be ₹27,37,500

Output:

Income Tax Calculator using Python

 



Last Updated : 07 Nov, 2022
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