Most of people like me (employed in different organizations) need to know how much tax will be deducted every month as TDS (Tax deducted as source) by their employer.
To help all of us, I have created a small but powerful income tax calculator using which one can find out how much In hand he will get, how much HRA proof he needs to provide to make HRA non-taxable, whats the total tax he will have to pay for a year. After you calculate your taxes, you can also read How to file income tax return online.
2012 Budget Update (16th March 2012): As per budget presented on 16th March, 2012, Pranav Mukherjee proposed changes for income tax rate slabs as per below.
- Additional Rs 50,000 tax exemption for retail equity investments, if annual income is less than Rs.10 lakh. This is named as Rajiv Gandhi Equity scheme.
- Exemption limit raised to Rs 2 lakhs from Rs 1.8 lakh.
- Additional Rs 5000 deduction for preventive health checkup other than medical insurance.
Read more here: Income tax calculator for 2012-13 and 2012 Budget updates
Income Tax Calculator for financial year 2012-13 (112.5 KiB, 19,555 hits)
Income Tax Rates for financial year 2012-2013 (Assessment year: 2013-14)
| For Men | |
| Upto Rs. 2,00,000 | Nil |
| Rs. 2,00,001 to Rs. 5,00,000 | 10 per cent |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
| For Women | |
| Upto Rs. 2,00,000 | Nil |
| Rs. 2,00,001 to Rs. 5,00,000 | 10 per cent |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
| For resident individual of 60 years or above (Senior Citizens) | |
| Upto Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 10 per cent |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
| For resident individual of 80 years or above (Very Senior Citizens) | |
| Upto Rs. 5,00,000 | Nil |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
2011 Budget Update (28 Feb 2011): As per budget presented on 28th Feb, 2011, Pranav Mukherjee proposed changes forincome tax rate slabs as per below. Also apart from current one lakh investment, additional 20,000 Rs will be non-taxable, if same has been invested in long term infrastructure bonds.
Income Tax Calculator for financial year 2011-12 (116.0 KiB, 169,758 hits)
Income Tax Rates for financial year 2011-2012
| For Men | |
| Upto Rs. 1,80,000/- | Nil |
| Rs. 1,80,001/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
| For Women | |
| Upto Rs. 1,90,000/- | Nil |
| Rs. 1,90,000/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
| For resident individual of 60 years or above (Senior Citizens) | |
| Upto Rs. 2,50,000/- | Nil |
| Rs. 2,50,001/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
| For resident individual of 80 years or above (Very Senior Citizens) | |
| Upto Rs. 5,00,000/- | Nil |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
2010 Budget Update (26 Feb 2010): As per budget presented on 26th Feb, 2010, Pranav Mukherjee proposed changes for income tax rate slabs as per below. Also apart from current one lakh investment, additional 20,000 Rs will be non-taxable, if same has been invested in long term infrastructure bonds.
Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 148,793 hits)
Income Tax Rates for financial year 2010-2011
| For Men | |
| Upto Rs. 1,60,000/- | Nil |
| Rs. 1,60,001/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
| For Women | |
| Upto Rs. 1,90,000/- | Nil |
| Rs. 1,90,001/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
| For resident individual of 65 years or above | |
| Upto Rs. 2,40,000/- | Nil |
| Rs. 2,40,001/- to Rs. 5,00,000/- | 10 per cent |
| Rs. 5,00,001/- to Rs. 8,00,000 | 20 per cent |
| Above Rs. 8,00,000/- | 30 per cent |
Related posts:
what is House rent allowance?n how to calculate HRA DEDUCTION
@Darshan
Rent receipts can be shown for taking tax benefit for living in a rented house. Income tax deduction for HRA will be least of following:
a)The actual amount of HRA received as a part of salary package
b)40% (if living in non-metro area) or 50% (if living in metro area) of basic salary.
c) Rent paid minus 10% of basic salary
if my salary is 40000 per month n HRA is 15000 and i m paying rent of 10000 than how much deduction i will get?
@Darshan
You will get HRA deduction of 6000 per month.
means rent – 10% salary?
@Darshan
40,000 has been assumed as your basic salary.
HRA exemption will be then minimum of (15000, 50% of 40000, 10000 – 10% of 40000)
Hi Pankaj,
Looks like DA is also taken into account if I enter some value there. How is it taken into account.
I had some other benefits that is not listed here, so I used DA and found it gave me wrong deduction amount. Is there a way for me to add/edit the left column(A).
thanks.
@Rajaram
DA is used in HRA deduction calculation.
Please use space for Grade/Special/Management/Supplemementary Allowance, Arrears, Performance Incentive/Bonus or Other income (Bank account/NSC/Post Office/SCSS Interest), in case you want to put another benefit not listed in calculator. There is no special handling for these fields.
Also, Can we know whats the benefit which calculator does not have support of, so that we may add that too to make it better.
Thanks. Self Retirement Benefits(I just treated it as flexible allowance and combined the data).
Also is City Allowance(CCA Row 15) is fully taxed? I just use that to put 1250 for medical and if I submit actual bills then I put that amount in medical reimbursement.
Maybe for the fields that are fully taxed, maybe mark those B fields in different colour or make them editable.
thanks,
@Rajaram
CCA is fully taxable.
For medical, I would advise you to use row 21 only. It automatically become non-taxable with receipts amount put in cell C44.
21 is Medical reimbursements. If I put 1250 in 21, C43 takes it as 1250, which is right.
C44 is used for conveyance of 9600 and P12, which is right.
So, I did not get it when you said both to be used to manage the actual receipt submission and allowance for medical. Right now CCA and 21 works for me.
Thanks,
@Rajaram
If medical, conveyance allowance and other such non-taxable portions are used, then it may or may not be taxable (it depends on receipts submissions).
Suppose you get medical reimbursement component of 1250, but you only submitted receipts of 1000, then you need to put 1000 in C44. This will make remaining 250 taxable.
In case of CCA, its taxable and does not matter what you put in receipts columns, it would be taxable.
Please let me know in case you have some doubt.
Dear Pankaj,
I have been reading your posts from last few days. Last time I asked you a doubt about tax slabs and you explained it very clearly. You really helping us a lot.
Now I have one more question. In Bangalore few companies are giving HRA compnent as 40% of the basic salary and others 50%. I googled a lot but could not get any clear idea about Bangalore HRA percentage. But I found that Bangalore is considered as A-1 cities of the India. Is there any official declaration that Bagnalore city HRA should be 50%? Please help me…
@Amit
HRA income tax benefit is minimum of below three amounts:
1. 50% of basic salary in case of Metro city (Delhi, Mumbai, Kolkata, Chennai), 40% of basic salary in case of other cities.
2. Actual house rent paid-10% of basic salary
3. Actual HRA received by employer
Bangalore is not covered under 50% definition and so 40% rule will apply.
if he as joined in middle of the F.Y. How to calculate we have to take previews salary details are in middle month
@Sanjay
Income tax calculator can be used to compute income tax in case of middle year changes as well as it captures salary details on monthly basis.
how to compute total taxable income of a partnership firm
@Raj
we don’t have much knowledge about tax rules for partnership firm. The calculator is suited only for a person having income from salary, pension and house rent.
Hi,
My Gross Annual Salary is Rs. 3,40,000/-
No deductions from Salary except Professional deduction ie. Rs. 16,000/- annually.
Have no home loan or any kind of investment as of today.
How much should I invest in Life Insurance/ULIP in order to save my taxes so that have no tax deductions from my salary.
Looking forward to your earliest response.
@Feroz
Please download income tax calculator excel and compute income tax liability.
You may also put tax saving investment figures to see impact on tax outgo.
PL Explain Me I Want to sale My Plot In Rs. 49 Lacks then am i liable For Any Typs of Tax
@NKC
You would need to compute capital gains and pay income tax on same.
If plot has not been in your name for more than three years, it would be a short term gain. Whole gains would be added to your taxable income and taxed as per your slab rate in this case.
Otherwise, in case of long term gains, you need to compute gains and income tax with following method:
Purchase Year = A , Purchase Cost = P, Cost Inflation Index (CII) for purchase year = X
Sale Year = B, Selling price = Q, CII for sale year = Y
Indexed Purchase price = P x (Y/X) = R
Long term capital gain = Q – R = S
Income tax on capital gain = S x 20%
I have purchased flat ina project. I am paying full EMI but posession of flat is in july 2012. Can i claim for principal amount paid for this financial year?
@Ranjeet
Exemption for house loan principal cannot be claimed before possession year of house.
My friend has housing loan sanctioned in both his Wife and his name. Till now they have been splitting HL interest and principal for computing income tax. The entire EMI is paid thru husband’s bank account. Can the IT benifits of housing loan be adjusted ONLY in husbands return?
Thanks in advance
@Praveen
Your query had been already answered on SocialFinance (http://www.socialfinance.in/questions/1897/house-loan-interest-and-principal)
If husband only is paying EMI’s, then only he should claim tax benefit and not both of them.
Hi,
What is Flat Allowance?In tax calculator where i have to fill my Flat allowance?
@Mayank
I am not sure what flat allowance means.
if its fully taxable component, you can use field for Grade/Special/Management/Supplemementary Allowance to fill value for same.
hello pankaj i am having income from salary ,income from business,income from intrest ,income from rents and agriculture please send me the format to file the return in excel thanking you venkat my e mail id is venkateswararaov@yahoo.com
@Venkat
You can download ITR4 from income tax website on this link: https://incometaxindiaefiling.gov.in/portal/downloads11-12/itr/ITR4_2011_12_R15.zip
My CPC processing status is “e-Return has been processed at CPC – nil demand/refund” . What does it mean?
@Yogesh
It means that assessment of your income tax return has been done and so there is no tax demand or refund applicable.
Many thanks for the Income tax sheet.
I have second home loan to be declared in my returns this year.
Appreiate if you could send me the sheet which will allow me to declare the rent from the second property and also enter the Interest paid to the second home loan.
Thanks,
@Irfan
You can use row 32 and 59 for house rent income and home loan interest figures.
As of now, calculator supports only one column for all home loan interests. You can add all and put same under cell C59.
Sir! I am Associate NCC Officer in my School. ANO Honorarium 700/- per month. this amount is taxable or not?
@Baburaj
Payment received for an honorarium is considered income and is taxable.
Thanks for your wonderful information.
Hi Pankaj,
Thanks a ton for your help. I started working in December 2011 after returning from the US. Would my income tax liability be computed taken into consideration that my salary for FY 2011-12 is only for December 11, Jan 12, Feb 12, March 12 ?
Or would it be computed based on my annual tax liability/12 ? (and I will get the additional tax paid after I file the tax return )
Thanks,
@Abhishek
If you have lived in India at least 365 days during the four years preceding this year, then you would be considered resident Indian this year too.
In that case, your whole global income would also be taxable in India.
If this is not the case, you would need to pay income tax for salary earned in Dec-11 till March-12. Total taxable income income would be actual salary earned in India only.
i have purchese flat in pune and agrrement also complited but i don’t know about home loan tax benifit also i have given the 400000 rs (20%) to builder can get benifit on this amount.
@Mahindra
Home loan benefit can be availed for principal and interest amount paid to bank. There won’t be any benefit for amount paid to builder for buying flat.
Hello Pankaj, I have a query regarding buy-back amount that my current employer is returning me. I just moved into a new job and since I did not serve notice period with my old employer I had to buy-back the period by paying 1 Lakh. My new employer is paying me back this amount but as a salary component. My first question to you is, is it right on the part of my current employer in paying this back to me as salary? If so how can I accommodate this in this excel? Hoping for a response. Many thanks.
@Som
Your new employer has no option but to pay-back the amount as salary or joining bonus. In this case, it will be added to your income and would be taxable as per your slab rate.
You can use arrears or Performance Incentive/Bonus field for entering this amount.
Sir,
I am filing a revised return thru ITR 2 for ay 11-12, I am facing problem with the sheet part B – TI – ITI. In which filed should I give my prof Tax and Conv amount so that my taxable income arrived at Rs. 161158/- (If I fail my tax income comes to Rs.173258/- and arrives for a tax liability, which is wrong) My salary calculation is as follows:
Gross Salary Rs. 312904
(*) Prof Tax Rs. 2500
(*) Conv Rs. 9600
Ded u/s 80 C Rs. 79226
Ded for HL Int Rs. 60420
Thus arriving at a Taxable income of Rs. 161158 (Tds paid Rs. 119/-)
Sir request to kindly help me out as my revised return is pending to be filed.
Divya
@Divya
Only taxable income needs to be entered in income tax return form. This taxable income should be computed by first deducting allowances like conveyance allowance and deduction like profession taxes etc.
You should put income from salaries as Rs 300800 and not 312904 in income tax return form.
After this put 79226 in 80-C deduction and 60210 in home loan interest deduction.
Sir, Thanks a lot for your promt advice, while filing my original returns I stated my salary as Rs. 300804/- ( i.e. Rs. 312904/- less conv Rs. 9600/- & P.Tax Rs. 2500/- ) under the head income from salaries and the rest of the part that is under 80C and H.L Interest, Now I have recd an intimation u/s 143(1) from the income tax clarifying that the income of Rs. 300804/- stated by me was not matching with the income of Rs. 312904/- that was declared by the company I worked and hence asking to pay a tax liability of Rs. 1247/- (i.e. 10.3% on diff of Rs. 12100/- i.e. Rs. Rs. 9600 (conv) + Rs. 2500 (P.Tax))
Now I am filing a revised return, hence kindly advice me, which are the field in form ITR 2 where can mention the tax exempted conv and the P.T
Rgds
Divya
@Divya
ITR does not have fields to enter conv allowance and professional tax. These should be deducted in form-16 while compute taxable income from salary.
Please check if your form-16 states it correct. If not, please ask your employer to get the form-16 corrected.
You should not file a revised return but write to income tax assessing officer for their incorrect computation and to remove un-necessary tax demand. Along with written letter, you should submit form-16 copy and form-26AS tax statement.
Sir, I have Gross 3.5 LPA and HRA in salary package is 3920 rs, I pay House rent 7000 as per receipt.
– Secondly I pay 32000 rs as LIC premium.
Kindly gimme an idea how much tax I shall have to pay ???
@Raj
You should download income tax calculator and compute income tax yourself.