in Finance, Government, Income Tax, India, Investment

The Excel-based Income Tax Calculator serves to compute taxes on various sources of income, including salary, pension, gifts, fixed deposits, bank interest, house rent, and capital gains (both short and long-term).

New Tax Regime Scheme (Section 115 BAC)- Income Tax rates for the financial year 2025-26/2026-27

For Everyone
Upto Rs. 4,00,000Nil
Rs. 4,00,001 to Rs. 8,00,0005 per cent
Rs. 8,00,001 to Rs. 12,00,00010 per cent
Rs. 12,00,001 to Rs. 16,00,00015 per cent
Rs. 16,00,001 to Rs. 20,00,00020 per cent
Rs. 20,00,001 to Rs. 24,00,00025 per cent
Above Rs. 24,00,00030 per cent

New Tax Regime Scheme (Section 115 BAC)- Income Tax rates for the financial year 2024-25

For Everyone
Upto Rs. 3,00,000Nil
Rs. 3,00,001 to Rs. 7,00,0005 per cent
Rs. 7,00,001 to Rs. 10,00,00010 per cent
Rs. 10,00,001 to Rs. 12,00,00015 per cent
Rs. 12,00,001 to Rs. 15,00,00020 per cent
Above Rs. 15,00,00030 per cent

Old scheme: Income Tax rates for the financial year 2018-19/ 2019-20/ 2020-21/ 2021-22/ 2022-23/ 2023-24/ 2024-25/ 2025-26/ 2026-27

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 a 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 a 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

Kindly access the Income Tax Calculator through the provided links, tailored to your specific financial year/assessment year. This tool is designed to be user-friendly, and suitable for individuals with basic proficiency in Microsoft Excel.

  1. FY 2026-27 (AY 2027-28): 
  2. FY 2025-26 (AY 2026-27): 
  3. FY 2024-25 (AY 2025-26): 
  4. FY 2023-24 (AY 2024-25): 
  5. FY 2022-23 (AY 2023-24): 
  6. FY 2021-22 (AY 2022-23): 
  7. FY 2020-21 (AY 2021-22): 
  8. FY 2019-20 (AY 2020-21): 
  9. FY 2018-19 (AY 2019-20): 
  10. FY 2017-18 (AY 2018-19): 
  11. FY 2016-17 (AY 2017-18): 
  12. FY 2015-16 (AY 2016-17): 
  13. FY 2014-15 (AY 2015-16): 
  14. FY 2013-14 (AY 2014-15): 
  15. FY 2012-13 (AY 2013-14): 
  16. FY 2011-12: 
  17. FY 2010-11: 
  18. FY 2009-10: 
  19. FY 2008-09: 

Changes in FY 2020-21 (Budget Feb 2020):

  1. Optional new tax regime – No change in the existing tax slab rates, but a new tax regime has been proposed. If individuals don’t take exemptions and deductions, they would be taxed at reduced tax rates.
  2. Additional 1.5 lacs deduction available u/s 80EEA on home loan interest subject to the following conditions:
    a) The loan must be taken between April 1, 2019, and March 31, 2021;
    b) The value of house property must not exceed Rs 45 lakh; and
    c) Individuals should not own any house on the date of sanctioning of the loan.

Changes in FY 2019-20 (Budget July 2019):

  1. Additional 1.5 lacs deduction available u/s 80EEA on home loan interest subject to following conditions:
    a) The loan must be taken between April 1, 2019, and March 31, 2020;
    b) The value of house property must not exceed Rs 45 lakh, and
    c) Individual should not own any house on the date of sanctioning of the loan.
  2. 15% surcharge between 1 to 2 crores of taxable income, 25% between 2 to 5 and 37% above 5 crores.

Changes in FY 2019-20 (Interim Budget Feb 2019):

  1. Full tax rebate (u/s 87A) for taxable income (after all deductions/exemptions) upto Rs 5 lakhs.
  2. Standard deduction increased for salaried persons from 40,000 to 50,000.
  3. No notional rent for second self-occupied house property under income from house property.
  4. TDS deduction on fixed deposits threshold increased from existing 10,000 to 40,000.
  5. Section 54 exemption is applicable for up to two house property purchase (once a life) if capital gains are less than or equal to 2 crores.
  6. Income tax slabs remain the same as the previous year.
  7. Anonymous and online system for assessments: Within the next 2 years, scrutiny to be done without any physical interface between taxpayer and tax officer and to be done electronically without disclosing each other’s identity. We wrote it as one of our suggestion in Open Letter to Narendra Modi in Dec 2016.

Changes in FY 2018-19:

  1. Removal of conveyance allowance and medical reimbursement and Addition of standard deduction of Rs 40,000
  2. Cess on tax increased from 3% to 4% (education and healthcare cess)
  3. LTCG introduced @ 10%, for gains exceeding 1 lakh earned from listed stocks/equity-linked mutual funds
  4. Section 80D now allows up to Rs 50,000 deduction for plan taken for senior citizens
  5. New section 80TTB added for senior citizens which allow up to Rs 50,000 deduction for income from saving bank interest or income from fixed/recurring deposits. But 80TTA (10,000 deductions for saving bank interest) and 80TTB cannot be applied together. Under section 194A the threshold for deduction of tax at source on interest income for senior citizens has been raised from Rs. 10,000 to Rs. 50,000
  6. Capital gain bonds u/s 54EC duration increased to 5 years from 3 years

Changes in FY 2017-18:

  1. The reduced income tax rate on income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent from 10 per cent.
  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 increased to 5000 from 2000 u/s 87A
2. Like NPS, tax deduction also available for APY (Atal Pension Yojana)

This excel calculator supports the inclusion of the 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 the following:

  1. The actual amount of HRA received as a part of the 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, the deduction for both HRA and home loan interest (u/s 24) can be taken together in case owned house is not in the 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 of employee also avail of 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/Supplementary Allowance: That’s a general component in the 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 the CTC amount into some component.

Arrears: Generally arrears are fully taxable, but the 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 the actual year. Now the difference of income tax between payment year and actual year would be allowed for deduction.

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

  1. Where journey is performed by rail; railway-fare in first AC class by shortest route to the destination.
  2. Where places of origin and destination are connected by rail but the journey is performed by any other mode than first AC class fare by the shortest route to the place of destination.
  3. Where the 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 the 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 encashment: Payment 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 the 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 up to 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 the employer for the same.

Periodical Journals: Some employers may provide a 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 the 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 an allowance for the purchase of office dress/uniform. In such a case, the component would become non-taxable.

Telephone reimbursements – In some 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 the company provides a component for this and employee use the 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 the car is more capacity than 1600cc.

Driver salary – If the employee pays the driver salary for a self-owned or company-owned car, Rs 900 per month may become non-taxable if the employer provides a 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 the 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, a rebate on agricultural income would be provided at a 10-30% rate depending on the 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 the 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 the 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 medical 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 a deduction of 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 an 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 need to show in income in case house is not self-occupied.

Section 80U (Disabled/Handicapped person): Deduction can be claimed if a person has a disability. The allowed dedudtion 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 the patient is a senior citizen). Deduction is only allowed in the 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. Haematological 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 is taxable in nature should be done after deduction of taxes at the source itself. Hence employer computes income tax on salary payment and deducts 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 the 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 the 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 the rest by 31st March. If its not followed one may be charged interest penalty u/s 234C.

If you want to use a 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.

 

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3,657 Comments

  1. 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

  2. This Tax calc is not OK. PF should come under Section 80C automatically. but it is not there. So calculation not proper

  3. 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).

  4. Hi Pankaj,

    I have withdrawn PF from my previous employer after 3 years of service. The withdrawal was submitted after completion of 6 months of unemployment.However, the PF withrawal paid by the company’s appointed PF firm -they have deduced around 30% tax on the total eligible amount ? i.e out of 3.25 lakhs / i have just been paid 2 lakhs ! Can i claim a refund ? if yes please advice how to proceed..Thanks in advance

    • @Mayank
      As per rules, EPF withdrawal before 5 years of service is taxable.
      These 5 years are not necessarily should be with same employer. You may transfer the EPF account from one employer to other and still EPF account will be counted in continuation.

  5. Pankaj –
    I wish to withdraw my PF which has been been continuous for last 8 years.
    Although I do not have a break in employment, can I withdraw my PF ?
    Also would there be any tax liability on the PF.
    Furthermore there is a FPF part in PF – is that amount also available for withdrawl or is it held back.
    In case it is held back and the balance is withdrawn, what happens to that amount ?

    Thank you in advance.
    Regards,

    • @Vivek
      If EPF account is for than 5 years, the withdrawal is non taxable. But in case you are still having PF account and continuing your job with same employer.
      If your total service is less than 9.5 years, you can apply for Pension Fund Money back (Withdrawal benefit). i.e, as you are not entitled for pension, you may withdraw that amount. Fill form 10C for this. If its not withdrawn, same will be carried over with your next employment’s EPF account and if your service is more than 10 years, you are eligible for pension after 58 years.

  6. hi pankaj… can capital gain tax on property sold be exempt on the purchase of two properties with the sale of one.? or does it have to be only one property purchased… ??

    • @Pramod
      It has to be one property purchased and not more than that.
      The amount of Long term capital gain exempt from income tax is equal to the amount invested in the new house. So lets say, you bought house in X rs and sold in Y rs. Then gain is X-Y, so even if you buy a new house of (X-Y) amount, you don’t have to pay any tax.

      • thanks a lot pankaj… one more question – we have property purchased in 1977 – what will be the indexation here? how does one calculate it? and can one add the repairs carried out on the house in all these years?? and what other costs can we add to minimize capital gains tax??

        • @Pramod
          Since you have kept the house for more than three year, its long term capital gain.
          In case of long term gain, you can invest the amount again in buying another house (within a year of selling or within 2 years of transfer) or construct another house within 3 years of sale or Investments in bonds within 6 months of sale (Section 54 EC of the Income Tax Act) issued by Rural Electrification Corporation, National Highways Authority of India and National Bank of Agricultural and Rural Development.

          In case you are not decided about buying new property but intend to buy one later and still want a deduction on the tax on your capital gain, you must invest whole amount in Capital Gains Scheme of Deposit Account, which can be opened in any public sector bank branch. But if this amount is not used for buying new house within three years, tax on long term capital gain have to be paid.

          Income tax on long term capital gains is 20% with indexation and 10% without indexation (only applies to some mutual funds and debentures).
          So you can calculate tax using below method

          Lets say purchase price = X, purchase year = P, sale price = Y, sale year = Q
          Cost Inflation Index (CII) for year P = R, Cost Inflation Index (CII) for year Q = S
          Indexed purchase price, Z = X * (S/R)
          Capital Gain, C1 = Y-Z
          Tax with indexation = C1*20%

          Cost inflation index was started in 1981-82 and its value was 100 for that year.
          As the assets sold had been acquired before April 1, 1981, you have the choice of substituting the actual cost with market value as on April 1, 1981.
          For 2009-10, CII is 632.

          Repairs etc cannot be added to cost, they can be adjusted only in income from house in case its given on rent.

  7. 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.

  8. I am employed and filing ITR.I have some income from intra day as well as short term trading of shares.How to account for this gain in ITR along with the income from regular employment?

  9. 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.

  10. 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.

      • 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.

  11. Hi Pankaj,

    I am very impressed with the Tax Calculator. It covers all the areas in such depth and accuracy that it is definitely one of the best tools that I have come across. And yes, it helps amateurs like us who will never understand the intricacies of Tax Calculation.

  12. I ve got a house which is on rent from last 1 yr . The tanent is deducting tax on rent amount @ 15.45% . On the other hand i am paying EMI on loan taken for the same house which is much higher than the total rent amount .I belong to NRI . Is there any way to minimise this taxation

    • @Sachin
      You can deduct whole interest amount from from your taxable income. Principal amount can be considered non-taxable, under section 80-C, upto maximum 1 lakh.
      But you will have to show rental income and 30% of that rental income is non-taxable for maintainence purposes.

      • hello Pankaj,
        i m getting 55 k as rent out of 65K and my EMI is 95 k (interest is 85 K and principal is 10 k ).
        Just help me in solving this silly puzzle to save on IT.

        Regards

        Sachin

        • @Sachin
          You can show House loan interest as Loss from House and deduct whole interest amount from your taxable income.
          House loan principal can be shown in 80C (upto max 1 Lakh)
          Income from house has to be shown as 70% of 65K=45.5K and has to be added to your taxable income.
          Whatever total payable income tax comes out, you can deduct TDS already deducted by your lessee and pay the rest of income tax.

  13. Hi Pankaj,
    Thanks for your detailed explanation for the questions raised by the users. I got 10 lakhs profit by selling my flat after 4 years of purchase. I invested immediately in constructing my house. As we do not document it in Income tax return, Do we get any query from IT department? Do I need to document it legally that I used profit money in constructing house for future purposes?
    Thanks in advance
    Jag

    • @Jagadeesh
      You must maintain all expense documents with you. Income tax department may send query in case they are doubtful on some part. They may even call you for scrutiny. While filing income tax return, you must declare the same.

  14. Hi Pankaj,

    thanks for your valuable advice
    (@Vinay
    You can only start taking interest and principal benefit in income tax from the financial year in which you get possession. And once that is done, you won’t be able to get benefit of HRA, as you live in same city.)

    Regards,

    Vinay

  15. Hi Pankaj,
    Thanks for this, very helpful, I’m kind of happy to see my new monthly tax split..
    just one query, do I have to enter the PF amount anywhere or is it calculated automatically, as I was nto able to see or enter it anywhere.

  16. Really it’s great, it’ll solve our problem within a moment. Thanks for this.

    But can any one tell me is it possible to edit salary breakup heads?

      • Boss,
        I want to mean that if I want to make some editing on this excel, say for changing the heads etc., then is it possible? Whenever I’m going for any change it’s asking for password as it is sheet protected.

        • Hi Pankaj,
          It’s really useful. Can u pls do me a fovour. Can you pls add 3 more heads – Tech All, CCA & Personal Pay under salary income and update so that I can take the download of the same file.