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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 (138.0 KiB, 13,999 hits)

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

      Income Tax Calculator for financial year 2016-17 (136.5 KiB, 32,882 hits)

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

      Income Tax Calculator for financial year 2015-16 (263.0 KiB, 49,752 hits)

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

      Income Tax Calculator for financial year 2014-15 (136.0 KiB, 80,616 hits)

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

      Income Tax Calculator for financial year 2013-14 (130.5 KiB, 56,056 hits)

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

      Income Tax Calculator for financial year 2012-13 (119.0 KiB, 91,047 hits)

  7. FY 2011-12

      Income Tax Calculator for financial year 2011-12 (116.0 KiB, 195,051 hits)

  8. FY 2010-11

      Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 159,224 hits)

  9. FY 2009-10

      Income Tax Calculator for Financial Year 2009-2010 (72.0 KiB, 67,374 hits)

  10. FY 2008-09

      Income Tax Calculator for Financial Year 2008-2009 (71.5 KiB, 24,037 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.

 


3,472 Responses

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  1. Bhabesh Kumar Mahato says

    Please upload the tax calculator for FY 2017-18. Big fan of your utility.

  2. Soli Somanath says

    Sir,

    I had a small clarification. My company gives me Food allowance of Rs 500/= every month and I also apply for Food coupons for Rs.2000/= every month. How am i supposed to mark this in the excel?

  3. Jayant Prasad says

    how to calculate in us 80ccd1(B)
    My Contribution is 70000 and employer contribution 70000

  4. Shivkant Choudhary says

    Dear Pankaj ji,
    Thanks for the wonderful utility created by you.
    I have a suggestion which may be useful for many. In the tax calculator APY and NPS is considered as part of the deduction from Salary only whereas the same may not be necessary. Also request you to provide a column for entering any advance tax payment.Would really appreciate if could consider the request and provide with the needful changes in the calculator for F.Y.2016-17.

    • Pankaj Batra says

      @Shivkant
      Thanks for the kind words.

      As such there is no difference in computation even if you put NPS under salary.
      Will update calculator to add advance tax payment soon.

  5. RAMU says

    HELLO SIR MY BASIC SALLARY 7500+HRA-4500+CONVENYANCE-3100=15100
    BUT I RECEVED OTHER SALES INCETIVE AND MOP INCENTIVE =6700 SOO I CANT CALCULATE MY TAXABLE SALARY?
    ONLY PROBLEM CALULATE FOR ALES INCETIVE + MOP INCENTIVE

  6. Rajesh says

    hi Pankaj,

    Looks there is a bug in the tax calculation for the second home loan. It shows amount exempted = (2,00,000 + 70% of rent received). Is this correct ? Please clarify.

    Thanks !

    • Pankaj Batra says

      @Rajesh
      Loss from house property from rental property is now limited to Rs 2 lakhs per annum under budget 2017.

  7. Arun Kumar Acharjee says

    Sr Citizen 66yrs
    Gross Income -Rs 446931
    Details -Pension Rs 384772
    Interest on Saving Bank Rs56131(66131-10000)
    LIC Pension Rs 6028
    Donations to Bharat Sevashram Sangha 80g-Rs2000.

  8. Shweta says

    Sir, please can you confirm if severance pay of amount less than 5 lakes for a period served in company greater than 3 years would be taxable or tax exempt? As per the company they deducted tax on same however I read on Internet that if you served more than three years and amount is less than 5 lakhs then it is tax exempt. Please clarify.

  9. sapna arora says

    Dear Pankaj,

    Kindly clarify has the amony in rebate for Tax has been changed fro Rs.5000/- to 2500/-

    As i am calculating my details in new excel.It si only deducting Rs.2500/-

    Thanks & regards
    Sapna Arora

  10. HG says

    I am a big fan of your Income Tax Calculation. However, i observed that section-80EE for AY18-19 is not included in calculation. Kindly revert.

  11. Pramod says

    HI
    I had relocated from one city to another on 1st Jan 2017. I was living in my own house in the first city while I am living in a rented house in the new city. My own house is yet not given for rent till end of the fin. year as we were doing some repair etc.
    Now, how much can I claim for the home loan interest? Can you please provide a formula?
    Also, is it necessary to submit proof of rent and medical to the employer or having them with me is good enough to claim the rebate? (Due to the change in employment I was not able to submit the documents in time).
    thank you

  12. Anita Vij says

    Sir,
    While submitting ITR for 2017-18 the message TDS on salary Invalid Characters in input..is coming. What to do in this regard, please advice Sir.

  13. Ashfaque Ansari says

    Dear Mr Pankaj,
    I have been using your Tax Calculation sheet for FY 2017-18 where I have inserted all the figure for salary tax working. Amount inserted in Food allowance is totally deducted for Tax calculation where as after search and consulting other Food allowance allowed is 2600/- per month above 2600/- full amount is taxable. But in

    • Pankaj Batra says

      @Ashfaque

      Thanks for reporting it.
      As of now, we don’t have put any max limit check on reimbursements as it may be dependent on company specific policies.
      You can edit C54 cell to put the non-taxable amount.

  14. Sangeeta says

    After searching on net finally found a good tax calculator in excel. This mainly covers Salary. Will you have an excel calculator for all types of inocme like we file ITR. Thank you!

  15. Chiranjeevi says

    Advance tax – can we show in form 16?

    • Pankaj Batra says

      @Chiranjeevi
      No, form 16 is for tax deduction while making payment to an employee.
      Advance tax is tax deposit by individual himself so it cannot be shown in form 16

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