You get your income tax payable by adding up all of your income, using all the appropriate deductions, determining your taxable income and calculating your taxes at the applicable rates on the sleeve income you fall into. As a next step, if your income falls between Rs 50 lakhs and Rs 1 crore, a 10% charge will apply and if your income exceeds Rs 1 crore, a 15% penalty over the tax due will apply. In addition, 4% of the tax due (plus additional charge if applicable) will need to be added in the form of health and education discounts. If your annual income is less than Rs 5 lakhs, you are eligible to claim a discount under Section 87A above. up to Rs 12,500 or taxes to be paid, depending on the minimum.