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Income tax calculator

Posted in Finance.

The excel based Income tax calculator can be used for computing income tax on income from salary, pension, gifts, fixed deposit and bank interest, house rent and capital gains(short and long term gains). This tool cannot be used for computing income tax from business or profession.

Income tax calculator

Income Tax Slab Rates for financial year 2017-2018 (AY: 2018-19)

For Men
Upto Rs. 2,50,000Nil
Rs. 2,50,001 to Rs. 5,00,0005 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For Women
Upto Rs. 2,50,000Nil
Rs. 2,50,001 to Rs. 5,00,0005 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For resident individual of 60 years or above (Senior Citizens)
Upto Rs. 3,00,000Nil
Rs. 3,00,001 to Rs. 5,00,0005 per cent
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent
For resident individual of 80 years or above (Very Senior Citizens)
Upto Rs. 5,00,000Nil
Rs. 5,00,001 to Rs. 10,00,00020 per cent
Above Rs. 10,00,00030 per cent

 

Please download income tax calculator from the links provided below on the basis of required financial year/assessment year.

  1. FY 2017-18 (AY 2018-19)

      Income Tax Calculator for financial year 2017-18 (117.5 KiB, 21,219 hits)

  2. FY 2016-17 (AY 2017-18)

      Income Tax Calculator for financial year 2016-17 (136.5 KiB, 34,353 hits)

  3. FY 2015-16 (AY 2016-17)

      Income Tax Calculator for financial year 2015-16 (263.0 KiB, 50,236 hits)

  4. FY 2014-15 (AY 2015-16)

      Income Tax Calculator for financial year 2014-15 (136.0 KiB, 81,089 hits)

  5. FY 2013-14 (AY 2014-15)

      Income Tax Calculator for financial year 2013-14 (130.5 KiB, 56,436 hits)

  6. FY 2012-13 (AY 2013-14)

      Income Tax Calculator for financial year 2012-13 (119.0 KiB, 91,402 hits)

  7. FY 2011-12

      Income Tax Calculator for financial year 2011-12 (116.0 KiB, 195,418 hits)

  8. FY 2010-11

      Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 159,568 hits)

  9. FY 2009-10

      Income Tax Calculator for Financial Year 2009-2010 (72.0 KiB, 67,691 hits)

  10. FY 2008-09

      Income Tax Calculator for Financial Year 2008-2009 (71.5 KiB, 24,462 hits)

Any person who has basic knowledge of Microsoft excel can use this tool easily.

Changes in FY 2017-18:

  1. Reduced income tax rate on income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent from 10 percent.
  2. Reduced Section 87A rebate from Rs. 5,000 to Rs. 2,500. And no rebate will be applicable for taxpayers having income above Rs. 3.5 lakh.
  3. Additional Surcharge of 10%, if taxable income is above 50 lakhs.
  4. Max loss from house property for let out property can be 2 lakhs.
  5. Period for applicability of long term capital gains for house property reduced to 2 years from 3 years, and base year changes to April 2001 for indexation computation.
  6.  Individual and HUF taxpayers to deduct tax at source @ 5% of the rent paid by them in case the amount of the rent exceeds Rs. 50,000 per month.

Changes in FY 2016-17:
1. Rebate incrased to 5000 from 2000 u/s 87A
2. Like NPS, tax deduction also available for APY (Atal Pension Yojana)

 

This excel calculator supports inclusion of following components, explanation for each is also provided along:

House Rent Allowance (HRA):  Rent receipts can be shown for taking tax benefit for living in a rented house. Income tax exemption for HRA will be least of following:

  1. The actual amount of HRA received as a part of salary.
  2. 40% (if living in non-metro area) or 50% (if living in metro area) of (basic salary+Dearness allowance (DA)).
  3. Rent paid minus 10% of (basic salary+DA).

In some cases, deduction for both HRA and home loan interest (u/s 24) can be taken together in case owned house is not in same city or not at a commutable distance to office.

Transport/Conveyance allowance: Rs 800 per month is non taxable if salary has this component. This would not be exempted in case employee also avail car reimbursement. No proofs/bills required to submit for this exemption.

Children education allowance:  Per school going child 1200 per annum is non-taxable. Maximum for 2 children, so max 2400 per annum becomes non-taxable.

Grade/Special/Management/Supplemementary Allowance: That’s general component in industry to complete CTC amount after putting 35-40% into basic and 20% in HRA. This is not an expense, but this head is kept just to put the rest of CTC amount into some component.

ArrearsGenerally arrears are fully taxable, but employee may claim exemption u/s 89(1).  One would need to compute income tax on the arrears if it would have been received in actual year. Now difference of income tax between payment year and actual year would be allowed for deduction.

Gratuity: If amount is received before completion of five years of service with employer, it should be taxable. Else it would be non-taxable up to Rs 10 lakh in case of non-government servants. In case of Government service employees, it would be fully non taxable.

Leave travel allowance (LTA)Two trips on a block of four years can be claimed for exemption for travel done inside India. Following amount would be non-taxable:

  1. Where journey is performed by rail; railway-fare in first AC class by shortest route to destination.
  2. Where places of origin and destination are connected by rail but the journey is performed by any other mode then first AC class fare by shortest route to the place of destination.
  3. Where place of origin of journey and destination, or part thereof, are not connected by rail and journey is performed by any other transport; then (i) If a recognised public transport system exists between such places the first class or deluxe class fare of such transport by shortest route, or, (ii) If in other case, first AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.
 Leave encashmentPayment by way of leave encashment received by Central & State Govt. employees at the time of retirement in respect of the period of earned leave at credit is fully exempt. In case of other employees, the exemption is to be limited to minimum of all below:
  1. The actual amount received
  2. The cash equivalent of leave balance (max 30 days per year of service)
  3. Maximum of 10 months of leave encashment, based on last 10 months average salary
  4. Rs. 3 Lakh

Performance Incentive/Bonus: This component would be fully taxable.

Medical allowance/Reimbursement: This component is on-taxable up to 15000 per year (or Rs 1250 per month) on producing medical bills.

Food Coupons – Non-taxable upto 50 Rs per meal. So a 22 working month and one meal per day would make Rs 1100 as non taxable. Sodexo or Accor ticket coupons may also be provided by employer for same.

Periodical Journals: Some employers may provide component for buying magazines, journals and books as a part of knowledge enhancement for business growth. This part would become non taxable on providing original bills.

Professional Development Allowance : If original bills are submitted to employer, this allowance may become non-taxable. Generally payment done towards any technical course fee, certification etc done to enhance professional knowledge can be reimbursed.

Uniform/Dress Allowance: Some sections of employees mat get allowance for purchase of office dress/uniform. In such case, the component would become non-taxable.

Telephone reimbursements – In some of the cases, companies may provide a component for telephone bills. Employees may provide actual phone usage bills to reimburse this component and make it non-taxable.

Internet Expenses – Employer may also provide reimbursement of internet expenses and thus this would become non taxable.

Car expense reimbursements – In case company provides component for this and employee use self owned car for official and personal purposes, Rs 1800 per month would be non-taxable on showing bills for fuel or can maintenance. This amount would be Rs 2400 in case car is more capacity than 1600cc.

Driver salary – If employee pays driver salary for self owned or company owned car, Rs 900 per month may become non-taxable if employer provides component for it.

Gift from relatives vs non relatives: Gifts from relatives would be non-taxable with no limits attached. Following relations are covered under non-taxable rule:

  1. Spouse of the individual
  2. Brother or sister of the individual
  3. Brother or sister of the spouse of the individual
  4. Brother or sister of either of the parents of the individual
  5. Any lineal ascendant or descendant of the individual
  6. Any lineal ascendant or descendant of the spouse of the individual, Spouse of the person referred to in clauses (2) to (6).

If gifts received from non-relative persons is worth more than Rs.50000, one is liable to pay the tax on whole value. Gift can be in form of a sum of money (in cash/cheque/bank draft/electronic transfer) or any articles.

Agricultural Income: If one has only only agricultural income, then it is fully exempt from income tax. If other income also there, rebate on agricultural income would be provided at 10-30% rate depending on actual amount of agricultural income.

House rent Income: 30% of the rental income can be reduced as a standard deduction for repairs, maintenance etc. irrespective of the actual amount spent.

Bank/Fixed deposit/Post Office/NSC/SCSS interest: Interest earned on bank account, fixed deposits, post office, debt mutual funds/fixed maturity plans(kept less than one year) would be added to taxable income and taxed as per slab rates.

Short Term Gains from Share Trading/Equity Mutual funds: if stocks/equity mutual funds are sold before one year, 15% tax would be payable on such gains. STT should have been on transaction.

Long term gains from Share Trading/Equity Mutual funds: If stocks/equity mutual funds are kept for more than a year before sale, it would be long term gains and such gains would be fully exempt from income tax. Securities transaction tax (STT) must have been paid on transactions for availing this exemption.

Section 80C, 80CCD and 80CCC deductions– One can claim his investments/payments under section 80C, 80CCC and 80CCD, up to 1.5 lakh (1 lakh before FY 2014-15) combined limit. Amount can be invested in:

  1. Tax saving mutual funds (ELSS) with three years lock-in
  2. Five year tax-saver bank Fixed deposits
  3. Public provident fund (PPF)
  4. National Savings Certificate (NSC) or National Service Scheme (NSS)
  5. Employer contribution into New Pension Scheme (NPS) (Section 80CCD)
  6. Life insurance/Unit Linked Insurance Plan (ULIP) premium
  7. Employee’s contribution towards Employee provident fund (EPF)
  8. Home loan principal amount payment (only if you have got possession of house)
  9. Senior citizen savings scheme (SCSS), if your age is more than 60 years
  10. Post office tax saving deposit or tax saving bonds
  11. Pension scheme/Retirement plans (Secion 80CCC)
  12. Tuition fees paid for children education
  13. Sukanya Samriddhi Scheme

Section 80D : Maximum deduction of up to 25,000 (15,000 before FY 2015-16) under mediclaim or health insurance offered by life insurers taken for self and family. An additional deduction of up to 15,000 for buying cover for dependent parents. If parents/assessee are senior citizens, they can claim deduction up to Rs 30,000.

Section 80DD : Deduction of 75,000 for maintenance of a disabled dependent. If the disability is severe, the deduction amount will be 125,000.

Section 80E : Tax relief on interest payments on education loan taken for higher studies for self, spouse or child. There is no maximum limit on this deduction.

Section 80G : The eligibility is 50% or 100% of the donation amount subject to overall ceiling of 10% of your gross total income to certain funds and charitable institutions.

Section 24/Home loan interest payment : The maximum limit is of 1.5 lakh on interest payments of a home loan for a self-occupied house. There is no ceiling on the amount of deduction if the house is let out or deemed to be let out. House rent would needs to shown in income in case house is not self-occupied.

Section 80U (Disabled/Handicapped person): Deduction can be claimed if person has a disability. The allowed dedudtion if for Rs 75,000. This deduction goes up to Rs. 100,000 in case disability is severe.

Section 80DDB deduction (Medical treatment expenses): Expenses done for medical treatment for self, spouse, dependent children, parents, brothers and sisters. Maximum deduction can be Rs 40,000 (goes up to 80,000 in case patient is senior citizen). Deduction is only allowed in case of following diseases:

  1. Neurological Diseases where the disability level has been certified to be of 40% and above,
    (a) Dementia
    (b) Dystonia Musculorum Deformans
    (c) Motor Neuron Disease
    (d) Ataxia
    (e) Chorea
    (f) Hemiballismus
    (g) Aphasia
    (h) Parkinson’s Disease
  2. Malignant Cancers
  3. Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
  4. Chronic Renal failure
  5. Hematological disorders :
    (a) Hemophilia ;
    (b) Thalassaemia.

Professional tax: Professional tax deducted from salary by employer should be removed from taxable salary before computation of income tax.

Employer contribution of EPF/New pension scheme(NPS): Employer contribution does not become part of employee’s income and hence income tax is not payable on this part.

Tax deducted at Source (TDS) deduction: As per income tax rules, all payment which are taxable in nature should be done after deduction of taxes at the source itself. Hence employer compute income tax on salary payment and deduct it every month. This TDS is based on employee’s saving/investment declaration at the start of year. If investments for tax saving is not done, large amount may be deducted in last few months.

In Hand monthly salary: After deduction of all components like TDS, EPF etc in hand monthly salary is computed.

In Hand monthly salary without reimbursements: Some of the employees get reimbursements components separately in a different payment other than salary, So this figure shows in hand salary w/o reimbursement components like medical, telephone, internet bills, driver salary etc.

Total income this year: This figure shows whole year’s income from all sources combined.

Advance tax schedule: As per income tax rules, 30% of income tax should be paid by 15th Sept, 60% by 15th Dec and rest by 31st March. If its not followed one may be charged interest penalty u/s 234C.

If you want to use simple web based calculator, you may try, official income tax calculator by income tax department

Disclaimer: We are not responsible for any inaccuracies in the income tax computed by this tool. If one finds any issue, they can report same to us through contact us page and we would try to fix the problem as soon as possible.

 


3,512 Responses

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  1. Chiru says

    Thank you sir.

    But, Can I add 20 rupees tax to total tax deducted(Whatever tax deducted from Apr’17 to Oct’17)?.. Otherwise, If i add only 100ru in taxable income, Tax will be huge. Plz suggest

    • Pankaj Batra says

      @Chiru
      Lets say taxable income from salary was 1000 for whole year and ESOP bonus is 100, so total taxable income would be 1100. Tax has to computed on total 1100 and accordingly TDS should be deducted per month.

      • Chiru says

        YES SIR. Correct. But, What about 20ru tax (already deducted for ESOP bonus). So, Need to add this tax in total tax deducted?

        • Pankaj Batra says

          @Chiru
          Yes, TDS deducted on ESOP bonus needs to be added to total tax deducted figure.

  2. Chiru says

    Dear Sir,
    One critical query. Team has already given ESOP to one employee( In that surcharge, tax , Education cess also considered) on may’17. Now, If i consider ESOP under the total taxable income, more than 1 crore is coming. Again i need to consider 15% surcharge on total taxable income?. If i consider, per month tax is coming more. plz suggest

    • Pankaj Batra says

      @Chiru
      Yes, if total taxable payable amount (paid till date in financial year and salary from remaining year) from employer is more than surcharge threshold, you need to compute surcharge and also deduct same in TDS.
      If tax is not computed correctly and paid to Govt as TDS, employer can be in trouble.

  3. Chiru says

    Thank u sir.
    How can i show ESOP amount and already tax paid for ESOP in software. I did manual adjustment in excel file.
    But, We can’t show in Payslip also this one. Can we show in outside payment for ESOP and outside tds for tax paid ??

  4. Chiru says

    Hi Sir,

    We have to give children education allowance as default exemption(24000)?
    We don’t have children education allowance component(In part of salary). So, how can give children education allowance and hostel allowance?. Pls suggest
    Regards,
    Chiranjeevi

    • Pankaj Batra says

      @Chiru
      Per school going child 1200 per annum is non-taxable. Maximum for 2 children, so max 2400 per annum becomes non-taxable.
      You would need to restructure salary to accomodate this component.

  5. Chiru says

    Hi Sir,

    If you have ‘year end payroll reconciliation template’, Please share

  6. Chiru says

    Its OK Sir.

    Sir,
    Employee can claim both as Interest on self occupied (2lakh) & Interest on let out (2 lakh)?

    • Pankaj Batra says

      @Chiru
      Yes, he can claim interest for both self occupied and let out properties.
      But he should show rental income for let out property and not show HRA claim in case of self occupied.

  7. Divyakant says

    Dear Sir,

    Can you send me computation of income table for the company ??

    I confuse which exp. I have to disallow / add at the time of tax calculation.

    Please help me and sent sheet on [email protected]

  8. Chiru says

    Hi Sir.
    Regarding claiming both that Int on house property and HRA
    Does employee claim in below 2 condition?
    1. Employee staying in rented house. Residing in rent house and work place also in bangalore. But, loan taken and own house propety in cochin. Can he claim both?
    2.employee has own house. But, Its very far around 50km to his office. He is residing in one rent home near to office. Does he claim both?

  9. Chiru says

    Dhanyavad Sir

  10. Chiru says

    Hi Sir,
    If u have FVU file generation template, Plz provide

  11. Ankur says

    Dear Pankaj,
    Sheet for FY17-18 has an error. Please see cell P71. If you enter any value in C71, the value in P71 doesn’t get reset even after changing value of the cell C71 (Letout property Home Loan Interest)

    • Pankaj Batra says

      @Ankur
      P71 = MAX(MIN((P33-P65-P72)+200000, C71),0)

      P33 – House Rent Income
      P65 – 30% deduction for house maintainence
      P72 – Municipal Taxes paid on house
      C71 – Actual Home loan interest paid

      Net loss from house property can be max 2 lakhs only.

  12. Ankur Bhardwaj says

    Dear Pankaj,
    I got calculation. See if I accidentally put 3lacs in C71. P71 shows 2lacs as per limit.
    Buy even if I make this 3lacs either 1lac or even zero, P71 remains 2lacs. Which I guess should not be.

    • Pankaj Batra says

      @Ankur
      I tested with following cases and found calculations fine. Only problem I could see is when you put blank in C71 instead of 0 or a numeric value.

      Salary income: 12 Lakhs
      Rental income: 6 Lakhs
      Municipal taxes: 5,000
      Let out Home loan interest: 0
      Section 24 deduction: 0
      Next taxable income: 16,16,500

      Salary income: 12 Lakhs
      Rental income: 6 Lakhs
      Municipal taxes: 5,000
      Let out Home loan interest: 3,00,000
      Section 24 deduction: 3,00,000
      Next taxable income: 13,16,500

      Salary income: 12 Lakhs
      Rental income: 6 Lakhs
      Municipal taxes: 5,000
      Let out Home loan interest: 5,00,000
      Section 24 deduction: 5,00,000
      Next taxable income: 11,16,500

      Salary income: 12 Lakhs
      Rental income: 6 Lakhs
      Municipal taxes: 5000
      Let out Home loan interest: 800000
      Section 24 deduction: 6,16,500
      Next taxable income: 10,00,000

  13. Ankur Bhardwaj says

    Got it. Thanks. I guess blank and zero is where I was struggling.
    Thanks a lot.

  14. Chiranjeevi says

    Hi Sir, I have 2 questions as below –
    1).While doing TDS 24Q filing, Why we have to file that employees who have PAN number & tax not deducted also?.
    2). Whether we can file only tax deducted employees?

  15. Chiru says

    Dear sir,
    While filing 24Q TDS, Whether we need to file only tax deducted employees or who have PAN number, but- Tax not deducted employees(For that employees also we need to file)?
    If employees who have PAN number, but-tax not deducted employees also we need to file mean- why?

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