Try ERPNext Buy Support Partners Foundation

How to calculate income tax based on taxable slab


I have created taxable slabs in payroll period please see in attached image.

If salaray per year < 600,000 there is no tax paid
If salary is > 600,000 & <12,00,000 there will be 5% tax to be paid
If salary is >12,00,000 & <18,00,000 then the tax payable 30,000 plus 10% of the amount exceeding 12,00,000

What formula or conditions do I need to calculate the correct income tax.

I have created salary component also please have the image below

For income tax salary component I have checked Variable Based On Taxable Salary option.

Salary structure is as follow