Business Income Tax Calculator

The figure to enter is what is left after the costs of earning it — purchases, rent, salaries, utilities, transport and the rest. Entering sales instead of profit is the single most common mistake here and produces a number far above anything you owe.

The corollary matters just as much: expenses only reduce your tax if you can evidence them. Cash spending with no invoice and no bank trail tends not to survive scrutiny, which is why businesses that document properly pay less than identical businesses that do not.

Non-salaried slabs are harsher, and that is deliberate

At the same income, a sole proprietor pays more than a salaried employee. The salaried schedule is more generous at almost every band. That gap is why the classification of your income is worth getting right rather than assuming.

Withholding already suffered comes off

Businesses have tax deducted throughout the year — on supplies, on services, on bank profit, on imports, on utilities. Those deductions are credited against the liability this calculates. The tax you actually transfer at filing is the difference, and overlooking the credits is how businesses end up paying twice and waiting a year for the refund.

Where this stops

It applies the slabs to a profit figure. It does not compute depreciation, carried-forward losses, or the minimum tax on turnover that can apply regardless of whether you made a profit at all.

If your margins are thin, check the minimum tax on turnover calculator as well.