The new slabs for Income Tax in India were proposed in the Union Budget 2010 by Finance Minister, Pranab Mukherjee. Given the new tax slabs that are expected to be in force from the FY 2010-11 or Assessment Year 2011-12 we have prepared an Income Tax Calculator for financial year 2010-11 for your convenience.
Broadly speaking, the tax slabs exempt all income below INR 1,60,000 whereas the income between INR 1,60,000 and INR 5,00,000 is proposed to be taxed at the rate of 10%. The next income tax slab lies between INR 5,00,000 and INR 8,00,000 for which the rate of taxation is 20%. Finally, all income above INR 8,00,000 would be taxed at the rate of 30%.
Also, the minimum turnover limit for small businesses for mandatory audit has been raised to INR 60,00,000. Similarly, in case of individuals, professional receipts exceeding INR 15,00,000 would be subjected to compulsory audit for filing of Income Tax Return.
Using the income tax calculator 2010-11 attached with this post you can see that for most of the individuals having income levels above INR 3,00,000 there is a steady reduction in the overall income tax liability. This is a clear step to reduce the overall tax burden from the shoulders of Indian Middle class which typically has income between 3,00,000 to 10,00,000 rupees per-annum – and especially so for the salaried people.
Please find the income tax calculator 2010-11 attached. This calculator caters to Assessment Year 2011-12 ( AY 2011-12).
Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 148,793 hits)
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Thank you for the updated calculator.
Great!! Thanks a lot for your help…
so this is effective from april 1st 2010 or 2011?
@Kiran
Yes this is effective from 1st April 2010
thanks for confirming!
great man
Hi Pankaj,
Thanks for providing the Tax Calculator!
I have two queries if you could help me with answers.
(1)
I wanted to know if the additional 20K tax benefit in section 80C for Infrastructure bond is covered in the calculator? Or If you can explain how to get benefit of Total Rs 120K under section 80C
(2) There is additional service tax in properties, how is that going to impact if one is buy/sell a fresh/resale house/land for residential purpose.
Can you please help with answer?
Thanks
Himanshu
@Himanshu
First, yes, the additional 20K tax benefit is covered in calculator. You can put investment amount in cell B73.
Second, construction of apartments and commercial properties has been brought under ambit of service tax, so it may raise the cost of apartments.
Hi It seems the Infra Bonds of 20K is not included in your calculator
@Anandh
Use Cell B73 for Long Term infra Bonds.
@Pankaj I think it is Cell B74 for Long Term infra Bonds
@Nirav
Yes, now its B74. Earlier it was B73 in older version.
Calculator keeps evolving as per user’s suggestions
my CTC included employer portion of PF. Is it necessary to put this amount in any of the columns. Please let me know. Thanks for this good calculation sheet. Also please let me know which colum i put the bonus.
Best regards josev
@Jose V
Its not necessary to put employer’s portion of PF, calculator will still calculate the income tax correctly.
For bonus, you can use cell C18:N18 (performance incentive)
thanks for the reply in the medical reimbursement I am getting more than 25000, when I type the actual figure it is taking only 15,000. can you please correct formula and update the same please
@Jose V
For medical reimbursements, max 15000 is non taxble per year.
@Pankaj,
Hi Pankaj,
Thanks for your answer.
for the second answer to my question on “service tax on property”, I got information that service tax is applicable ony if there any modification done than the default design of the property provided by Property Developer.
I had another question regarding Section 24(b) “Tax rebate on Interest paid on Housing Loan”
I could not see that section in the sheet available. Has that provision been revoked? Below link for section 24
http://law.incometaxindia.gov.in/TaxmannDit/DispCitation/ShowCit.aspx?fn=http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2009ITAct/section24.htm
@Himanshu
Service tax will be applicable on construction cost of the apartment paid to developer.
Exemption for interest amount paid for home loan is till applicable and you can put that amount in cell B47 of excel.
Thanks for new tax Calc
Where are you considering the Non-Taxable allowances into your tax calculator ?
@Mum
You can provide non-taxable allowance in cells B34 to B44 of the calculator.
Thanks … but they dont reflect while calculating the final tax amount in any way . …thanks
@Mum
You have to provide values in amount received also in monthly figures.
I want to know maximum % of LTA amount co. can allow to employee.
@Sudhir
There is no standard rule for LTA. It depends on company policies. Please consult your employer for the same.
Respected Sir,
AAPKA BAHUT DHANAYAWAD AAP NE INCOME TAX CALCULATOR DALA HAI SIR MUJHE KUCH PUCHNA THA KI GPF KA REBATE AUR PPF KA REBATE ME KAYA FARK HOTA HAI SIR KUCH ACCOUNTING SE RELATED BHI KUCH FILE UPLOAD KAR DO SIR.
@Daljeet
PPF has a limit of investment and rebate of upto Rs 70,000 per year. PPF is totally maintained by individual.
Rebate on employee contribution to GPF may go upto 1 Lac. GPF has two components, one from employer and one from employee. Employee portion is non-taxable under section 80C.
Thank you very much Pankaj. I am following your calculator from last finatial Year 2009-10 it is wonerfull and can make out our IT pay exactly… Thank you very much again
Hi, Pankaj,
What is the limit for Tax saving amount FY-2010-2011, if it is 1.20 Lakh under chapter VIA (Column B55 to B74) then i put more then 1.20 lakh amount, but the Total Net Income considring the more than 1.20lakh, tax free amount, Tax on Total Income showing variance. Please guide me. I dont know about the below sections weather it will cover under 1.20lakh Tax Amount.
80E (Interest on Loan for Higher Education)
80U (Handicapped person)
80G (100 % deductions)
80G (50 % deductions)
@Gopal
Max deduction under under Section 80C & 80CCC (Column B66) is 1 Lakh.
Apart from this,
Max 20,000 deduction can be availed for investment in Long term infrastructure bonds (Column B74).
Max 15,000 deduction can be availed for Self/Family medical insurance under Section 80D (Column B68).
Max 20,000 deduction can be availed for dependant Parent’s medical insurance under Section 80D (Column B69).
Max 50,000 deduction can be availed for Medical expenses for handicapped person under Section 80U (Column B71).
50% or 100% amount deduction can be availed for amount donated under Section 80G (Column B72, B73).
Hi, Pankaj ,
Thankyou very much for your advise. Your Tax Calculator will help to many people for making the plan for tax saving.
Thanks & Regards
Gopal L.D.
HI PANKAJ,
m in ma early 20ies n wana invest in GOVERNMENT BONDS..i have no clue where n how to nvest in them,please provide some info regarding it.wot i knw is that its safe..n provides tax saving u/s 80 C..
n cud u plz tel me about infrastructure bonds??both pvt n public
@Krithika
The government issues bonds to fund development projects, to fund the fiscal deficit and so on.
Govt bonds are pretty safe to invest in and investment in it is also non-taxable under section 80C upto limit of one lac.
Some of the Govt bonds are India Infrastructure Finance Company (IIFCL) Tax free bonds, National Bank for Agriculture and Rural Development (NABARD) Bhavishya nirman bond and Rural Bonds.
Currently ICICI Safety Bonds and IDBI Flexibonds are two infrastructure bonds available in market.
@ pankaj
I checked with the Tax calculator for 10-11 and found that there is an issue with the calculation of HRA and Interest paid for housing loan is not calculated correctly.
Please advise if it is correct
@Badal
Please let me know where you are encountering issues.
For correct usage, you have to provide values in cell B5 (for place of stay, metro or non-metro), C31:N31 (actual rent paid as per rent receipts), C11:N11 (actual HRA received from you employer as part of the salary) and B49 (Interest component of Housing loan)
Thanks for getting back pankaj.. I am sorry i overlooked that row..
I filled that and now it is working like a charm..
Really helpful.. I distributed to my friends as well and referred this link
Hi Pankaj
Thanks for providing such a gud calculator, but i have a query like there is not any option to put the gratuity amount while it has been considered in our CTC, so what and where should i place this amount.
Thanks n regards
@Toshi
Thanks for suggestion. I will surely add provision for Gratuity in calculator and let you know when I have done these changes.
@Toshi
Please download the latest file, it has provision for Gratuity.
Hi Pankaj
Thanks for the updation.
This Tax calc is not OK. PF should come under Section 80C automatically. but it is not there. So calculation not proper
@Anil
Thanks for pointing that out. I will surely correct that soon.
Please clarify what type of investments (name of the bond, name of firm or clear name of the investment details ) are eligible for the additional 20000 tax rebate
@Poonnambalam
Long term infrastructure bonds are eligible for additional 20000 tax rebate.
As of now only ICICI Safety Bonds and IDBI Flexibonds are there in market, but there will be more such bonds launched by banks or NBFCs (non-banking financial company).
It makes sense for people in the over Rs 8 lakh taxable income slab to use the infrastructure bonds as a tax-saving instrument.
For the people in the Rs 5-8 lakh bracket, it would be advisable to invest in infrastructure bonds if the period of investment is 3 years, but not for five years and for those in the Rs 1.6-5 lakh bracket, it would be an absolute no-no to invest in Infrastructure Bonds for tax-saving purpose.
source: http://business.rediff.com/report/2010/mar/09/budget-2010-perfin-should-you-invest-in-the-infrastructure-bonds.htm
Can you please add provisions for gratuity and PF and Hospital Insurance. But excellent work man otherwise man
Some of the cells are taking values from above but are not displaying month wise but reflecting in the total yearly calculation like Transport Allowance under Non Taxable Allow and some are not showing in the yearly like Child education Allowance)
I am not aware of the limits or specification of Non – taxable allowances. Can anyone help
@Dharmesh
I will surely add provision for Gratuity soon. Support for PF(cells C92-N92) and Medical insurance(cell B68-B69) is already there.
Transport allowance is non-taxable up to maximum 800 per month, that makes max 9600 per year
Child education allowance is non-taxable up to 100 rs per month per child for maximum of two children, which makes maximum 1200 or 2400 per year, depending on 1 or 2 children.
First of all, the information you shared with everyone is a great work. plus the monthly tax calculator is great too. But i think while calculating for HRA Exemption, if we dont put rent, teh exemption is 0. but if i put the rent as 10 rs per month only, the exemption is negative, that is nearly 10% of basic salary adds as as extra taxable income, which is not logical. cause one cannot be taxed on the amount which he never earned.
so if the value of rent is less than the minimum rent of 3000 (no rent receipt required to show for HRA exemption income given by IT department), the cells should reflect “3000-10%basic” or HRA given by company whichever is lower, and limited to lower boud of “0″ cause it will be negative exemption and the amount will be taxed.
@Veerdhawal
Thanks for reporting issue in HRA calculations, I have not fixed it and will upload the new file soon.
Plus i couldnt find a place to put professional tax. i know it is at end, but it does not subtract the same from taxable income and the total tax remains same even after putting the PT.
@Veerdhawal
For professional Tax, please see row 46, it does deduct professional tax(sum of values provided in row 91)
Thanks for the same.. Still the sheet creaetd by you is an excellent work, almost completely updated with the recent budget. The most wierd thing related to Incometaxindia site is that they haven provided any such Tax sheet, at leat for Salaried people.. They are or might be afraid of loop holes that might exist in the sheets they create. but once started can produce completely full prrof sheet to public..
Taxation includes many other areas, where lot many people dont have any information on, like LTCG, CII and other stuffs.
Whats interesting is what it will will finally look like the next year with DTC (code) on..
@Veerdhawal
Tax calculation can go very complex as tax rules are not simple to understand. Exemption have multiple conditions attached to it.
Income tax department will have a tough time to build and maintain such calculator, if they choose to make. Plus they have to provide a support team to make people understand how the calculator has computed. I don’t think they will try this in any near future.