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.
28th Feb 2013: Income tax calculator for 2013-14 and Budget 2013 update
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 (119.0 KiB, 76,287 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, 186,054 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, 151,913 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 |
Hello Pankaj,
I am having an offer from one of the bangalore based company and the salary offered is 27 lacs PA. 2.1lac is take home per month and 2.25lacs per month is CTC. Please let me know how much will be the tax payable and how i can maximum deduction in tax. Please help me with your feedback
Thank you,
Shanoj Kuamr
@Shanoj
Please download income tax calculator and compute income tax by putting component breakup in required fields.
Where to invest for tax saving, you can read here:
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/45/investment-advise
Hi Pankaj, I have downloaded 2011-12 excel sheet and populated the fields. I am afraid that the total HRA exemption amount is not getting deducted from the total income displayed in P36. And, P40 remains blank even after I have entered all the fields (D39 to O 39) Please look into this.
@Sanoj
Can you please send your file to our email id: files at pankajbatra dot com, so that we may look into the issue.
tax deduction in case of interest of housing loan can be proceed in which year??
can it be at the year when i borrowed money or after construction or after 3 years?
@Darshan
Deduction for home loan interest payment can be claimed from the year in which possession was taken.
If it took more than three years for possession, after loan was taken, this deduction won’t be available.
Sir,
I have received gratuity arrears of Rs. 1357 from my previous employer (I had taken VRS in April 2007). Under which head should I show this income? Is this exempt from tax?
Secondly I had puchased an insurance policy of Birla sunlife in the name of my minor daughter . I paid all the premiums for this policy, tha last one pain in May 2008 (total premium paid Rs. 92100). I surrendered the policy in November 2010 an recd the surrender value of Rs. 119000. Do I have to pay tax on this amount. If it is exampt under which section do I have to show this income while filing the return?
Thirdly the bank in which I have an account does not appear in the list of the banks that participate in efiling of tax. Is it still possible to pay tax online or do I have to fill the challan manually and pay the tax in the bank?
Please advice
Jayashree
@Jayashree
Gratuity arrears should be non taxable in your case.
As you surrender policy before three years, entire surrender value gets added to your income in the year of receipt as your 80C deductions claimed in the past years would also be void and become taxable. This would needs to be shown under income from other sources.
You can call your bank if they support online payment of income tax. Some bank have tieups with other listed banks and can process online payments.
If its not possible then you would need to pay it in branch using challan.
I received a gratuity on my retirement of Rs. 13,72,937 in sept 2011, calculated @ 396 X 39540 (gross salary of Rs. 39540{not basic please}) XRS. 9.5 /100. From this the management deducted their share of EPF Rs. 114558. Though I got retired in Jun 2011 the gratuity was given in Sept 2011. Could you please tell whether I have to pay any income tax since this was my retirement benefit.
@Miss Philoamena
In case of Govt employees, gratuity is fully non taxable. In case of others, max exemption is only 10 lakh.
Hello Pankaj,
I am an intenet entrepreneur who has a global Income for services that I render to the companies and Individuals around. I am a forecastor by profession who makes forecasts in the currency markets and the these companies/ Individuals invest accordingly. Besides that, some of my income is for training and consultancy that I give to people online on How to get into currency trading markets.
Since all this income is online and comes to me in foreign currencies, is it taxable ? Secondly, this is kind of a business, not a salaried Job, so what is best way to go about finding my taxes? I believe that Instead of paying any tax on this, I should be getting incentives from the government for bringing some foreign currency in.
Thanks, Will appreciate your guidance!
@Prashant
As you are resident Indian, whole income earned by you (whether from India or outside) would be taxable in India.
You would need to file income tax return with ITR-4 (income from business).
You would need to maintain profit/loss accounts and compute taxable income after deducting all business running expenses (internet bills, computer, printer, electricity bills etc.)
As income tax computation for businesses is complex, I would suggest you to get services of a CA or tax professional. He would be able to help you compute income and minimize taxes.
Thank you Pankaj
Hi Pankaj,
I’m an NRI and the only Indian income I have will be a rental income from a flat I own. If my rental income (-the 30% maintenance deduction allowed) is below 2 lacs, is it correct that I don’t need to file a tax return and/or pay any tax.
thanks
@Karan
If your taxable income (except capital gains) is above 1.8 lakh (non taxable slab), you would need to file income tax return.
Thanks a lot. The income I mentioned is from 1st April 2012 onwards, so should fall under the new no taxable slab on 2 lacs.
A related question – if I have to invest in NSC etc. to take my taxable income below the non taxable slab, again would this mean no tax return ?
Really the question is: If I don’t have to pay income tax, is there any scenario where I would still need to file a return ? Is the case “no tax to pay” = “no return to file”.
@Karan
As you were asking for FY 12-13, 2 lakh would be applicable and not 1.8 lakh.
Only if before any deduction like 80C etc, taxable income is below 2 lakh then income tax return filing is not mandatory.
No tax to pay does not necessarily mean no return to file.
There is another rule which was started last year, which says if your taxable income is below 5 lakh, income is only from salary/pension from a single employer and bank interests, all taxes on salary and bank interest have already been paid as TDS, then there is no need to file income tax return.
Hello,
I downloaded the income-tax calculator sheet…it asks for a password..Please help.
@Rishi
It does not need password for income tax computation. Fields required for computation are editable.
Is Long Term Infra. Bonds (Section 80CCF) coloumn is not applicable for 2012-13 Tax? because above mentioned XL sheet is not taken inputed value in the saving work sheet..
Advance Thanks
Saidaiah
@Saidaiah
80CCF has been discontinued from FY 2012-13, that’s why income tax calculator does not consider its value for deduction.
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.
But in the excell sheet its take maximum 25000 only.. Is there any problem in the sheet. And please me know the section of the RGES
@Thiru
Maximum deduction of 25000 (50%) would be available under Rajiv Gandhi Equity Savings scheme.
Income Tax Calculator is a really helpful tool for freshers like me to understand things and I am hoping some more help…
1) Gratuity is cut from my salary per month (@4.83% of basic salary). But when I put that amount in the 17th row of the sheet, the Total income and in-hand salary goes up (which are not the actual values).
Please guide me where to put the gratuity cut on the Income Tax Calculator sheet.
2) I want to fill Investment declaration form. And my CTC is around 2.8LPA.
Please guide me what should I put in the form? My dad suggested to go only for PPF for amount 60k. And pay the tax on whatever will remain.
I am not from commerce background so please help me with these things.
@Mayur
1. In income tax calculator, Gratuity field should be used for filling amount received as Gratuity. Deduction for gratuity does not become part of your income and need not to be mentioned in income tax calculator.
2. You should fill investment declaration form as per your tax saving plan. This is just a suggestive form and need not to be exactly same as actual. Say you mentioned that PPF investment is 60K, but actually you invest just 20K into PPF and rest 40K into mutual funds and life insurance, It won’t be an issue later. But make sure total amount declared should be approx closer to what you will actually invest. Otherwise in later months, you will more tax deductions than expected.
One more suggestion, as you are in lowest tax slab, to save X Rs taxes, you would need to invest 10 times the amount. This amount would mostly remain locked for minimum 3-5 years (in PPF for 15 years). So its not always advisable to lock this amount just for saving 10% income tax.
Thanks Pankaj for valuable information!!
Regards,
Pankaj
Hi Pankaj,
My last employer stopped my salary for last three months of my job, till March 2011. They deducted income tax though and later in this financial year they deducted 90000 from that amount due to some financial bond I had with them. But my form 16 issued by the employer does not say that. Is it correct on my employer’s part?
Regards,
Vishal Kaushik
@Vishal
Deduction for not following bond does not have any deduction in income tax and thus its not shown in form-16. Employer is correct in this matter.
Thanks a lot for this excel macro. In the future you could also consider giving out an Openoffice/libreoffice macro.
Thanks
hex
Sir,I am retaired from Bank services. As per new stellment, I opted pension and received arrears of my pension( from 27th, Nov.2009 to 31st, March 2011) in the month of April 2011 Rs. 272555.03. and dedected Rs.20943.00 on a/c of IT, but this income pertain to three financial years ( 2009-2010, 2010-2011 and 2011-2012 ) Pl. tell me what should I do
@S S Bakshi
You can claim tax refund while filing income tax return, by declaring tax relief under section 89(1).
Sir, One plot which is Transfered from my Father’s Name to my name, now i want to Sale & it can be sale arround 60lacks. As per IT Act any tax liabilites creat on me if yes then how many as on abov Amt
@NKC
You need to pay income tax on capital gains earned from plot sale.
Use the following method to compute gains
Purchase Year = A, Purchase Cost = P, Cost Inflation Index (CII) for purchase year = X. Here Purchase year and cost would be taken as spent by your father originally.
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 had purchase agricultural land on 13/07/2003 for purchase consideration of 148000 and sold for 4800000/- on 13/03/2012 wht wil be the tax rate for capilat gains through direct method or computation method
@Nusrath
Purchase Year = 2003-04, Purchase Cost = 148000, Cost Inflation Index (CII) for purchase year = 463
Sale Year = 2011-12, Selling price = 4800000, CII for sale year = 785
Indexed Purchase price = 148000 x (785/463) = 250929
Long term capital gain = 4800000 – 250929 = 4549071
Income tax on capital gain = 4549071 x 20% = 909814.2
what are exemptions to save tax
if we sell agricultural property can we save tax by investing into residential house
@Nusrath
Income tax on capital gains earned from selling agricultural property can be saved by investing into residential house too u/s 54F.
Dear Pankaj
kindly help me how can Rs 5000 for preventive health check up can be utilised in what form and certain test required
@Arun
You can get routine health checkup done for you and your family and claim deduction for same.
This may include normal thyroid, Cholesterol, Haemogram, TMT, X-ray tests etc.
Dear Pankaj
will this Rs 5000limit be excluding Rs 15000 limit or it is included
now if get checked above said tests and can i claim tax benefits by submitting is bills
@Arun
This 5000 Rs is a sub-limit under existing 15000 80D limit.
You can get test done and claim tax deduction for same u/s 80D.
we have ancestral agricultural property and sold for 35lakhs on 01/06/2012 we are 5 brothers and sister divided it equally shall we have to pay income tax for sale consideration united or individually.what wil be tax rate are there any exemptions kya
@Noor
You will have to pay income tax on long term gains individually.
Income tax is payable @ 20% on long term gain computed with indexation benefit.
You can save income tax by investing into residential house property or into capital gain bonds.
Sir!
I am associate NCC Officer in my school. I am getting Rs.750/- per Month honorarium for this job. This amount is taxable or not? Audit members say that this amount is taxable. Please clear the problem. By R.Baburaj Jain, Puducherry
@R.Baburaj
NCC officer honorarium should be taxable.
Dear Pankaj
I have no other income except interest from Bank Fixed Deposits.What will be my income tax liability?
@S.Ghosh
Interest from bank fixed deposit is taxable like any other income.
In case interest income from fixed deposits and bank account is more than non-taxable slab (2 lakh for FY 2012-13), you need to file income tax return.
You need to compute income tax on such income and pay taxes, if applicable.