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. 4,00,000 | Nil |
| Rs. 4,00,001 to Rs. 8,00,000 | 5 per cent |
| Rs. 8,00,001 to Rs. 12,00,000 | 10 per cent |
| Rs. 12,00,001 to Rs. 16,00,000 | 15 per cent |
| Rs. 16,00,001 to Rs. 20,00,000 | 20 per cent |
| Rs. 20,00,001 to Rs. 24,00,000 | 25 per cent |
| Above Rs. 24,00,000 | 30 per cent |
New Tax Regime Scheme (Section 115 BAC)- Income Tax rates for the financial year 2024-25
| For Everyone | |
| Upto Rs. 3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 7,00,000 | 5 per cent |
| Rs. 7,00,001 to Rs. 10,00,000 | 10 per cent |
| Rs. 10,00,001 to Rs. 12,00,000 | 15 per cent |
| Rs. 12,00,001 to Rs. 15,00,000 | 20 per cent |
| Above Rs. 15,00,000 | 30 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. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5 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. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5 per cent |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
| For a resident individual of 60 years or above (Senior Citizens) | |
| Upto Rs. 3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 5,00,000 | 5 per cent |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 per cent |
| Above Rs. 10,00,000 | 30 per cent |
| For a 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 |
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.
- FY 2026-27 (AY 2027-28):
Income Tax Calculator for financial year 2026-27 (151.5 KiB, 2,899 hits)
- FY 2025-26 (AY 2026-27):
Income Tax Calculator for financial year 2025-26 (151.5 KiB, 31,993 hits)
- FY 2024-25 (AY 2025-26):
Income Tax Calculator for financial year 2024-25 (150.5 KiB, 31,035 hits)
- FY 2023-24 (AY 2024-25):
Income Tax Calculator for financial year 2023-24 (149.5 KiB, 26,868 hits)
- FY 2022-23 (AY 2023-24):
Income Tax Calculator for financial year 2022-23 (148.5 KiB, 14,188 hits)
- FY 2021-22 (AY 2022-23):
Income Tax Calculator for financial year 2021-22 (147.5 KiB, 10,839 hits)
- FY 2020-21 (AY 2021-22):
Income Tax Calculator for financial year 2020-21 (141.5 KiB, 24,644 hits)
- FY 2019-20 (AY 2020-21):
Income Tax Calculator for financial year 2019-20 (125.0 KiB, 57,963 hits)
- FY 2018-19 (AY 2019-20):
Income Tax Calculator for financial year 2018-19 (125.0 KiB, 75,042 hits)
- FY 2017-18 (AY 2018-19):
Income Tax Calculator for financial year 2017-18 (117.5 KiB, 47,202 hits)
- FY 2016-17 (AY 2017-18):
Income Tax Calculator for financial year 2016-17 (136.5 KiB, 41,348 hits)
- FY 2015-16 (AY 2016-17):
Income Tax Calculator for financial year 2015-16 (263.0 KiB, 55,298 hits)
- FY 2014-15 (AY 2015-16):
Income Tax Calculator for financial year 2014-15 (136.0 KiB, 85,348 hits)
- FY 2013-14 (AY 2014-15):
Income Tax Calculator for financial year 2013-14 (130.5 KiB, 60,077 hits)
- FY 2012-13 (AY 2013-14):
Income Tax Calculator for financial year 2012-13 (119.0 KiB, 95,057 hits)
- FY 2011-12:
Income Tax Calculator for financial year 2011-12 (116.0 KiB, 198,880 hits)
- FY 2010-11:
Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 162,707 hits)
- FY 2009-10:
Income Tax Calculator for Financial Year 2009-2010 (72.0 KiB, 71,416 hits)
- FY 2008-09:
Income Tax Calculator for Financial Year 2008-2009 (71.5 KiB, 28,692 hits)
Changes in FY 2020-21 (Budget Feb 2020):
- 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.
- 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):
- 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. - 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):
- Full tax rebate (u/s 87A) for taxable income (after all deductions/exemptions) upto Rs 5 lakhs.
- Standard deduction increased for salaried persons from 40,000 to 50,000.
- No notional rent for second self-occupied house property under income from house property.
- TDS deduction on fixed deposits threshold increased from existing 10,000 to 40,000.
- 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.
- Income tax slabs remain the same as the previous year.
- 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:
- Removal of conveyance allowance and medical reimbursement and Addition of standard deduction of Rs 40,000
- Cess on tax increased from 3% to 4% (education and healthcare cess)
- LTCG introduced @ 10%, for gains exceeding 1 lakh earned from listed stocks/equity-linked mutual funds
- Section 80D now allows up to Rs 50,000 deduction for plan taken for senior citizens
- 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
- Capital gain bonds u/s 54EC duration increased to 5 years from 3 years
Changes in FY 2017-18:
- The reduced income tax rate on income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent from 10 per cent.
- 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.
- Additional Surcharge of 10%, if taxable income is above 50 lakhs.
- Max loss from house property for let out property can be 2 lakhs.
- 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.
- 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:
- The actual amount of HRA received as a part of the salary.
- 40% (if living in non-metro area) or 50% (if living in metro area) of (basic salary+Dearness allowance (DA)).
- 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:
- Where journey is performed by rail; railway-fare in first AC class by shortest route to the destination.
- 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.
- 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.
- The actual amount received
- The cash equivalent of leave balance (max 30 days per year of service)
- Maximum of 10 months of leave encashment, based on last 10 months average salary
- 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:
- Spouse of the individual
- Brother or sister of the individual
- Brother or sister of the spouse of the individual
- Brother or sister of either of the parents of the individual
- Any lineal ascendant or descendant of the individual
- 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:
- Tax saving mutual funds (ELSS) with three years lock-in
- Five-year tax-saver bank Fixed deposits
- Public provident fund (PPF)
- National Savings Certificate (NSC) or National Service Scheme (NSS)
- Employer contribution into New Pension Scheme (NPS) (Section 80CCD)
- Life insurance/Unit Linked Insurance Plan (ULIP) premium
- Employee’s contribution towards Employee provident fund (EPF)
- Home loan principal amount payment (only if you have got possession of the house)
- Senior citizen savings scheme (SCSS), if your age is more than 60 years
- Post office tax-saving deposit or tax saving bonds
- Pension scheme/Retirement plans (Secion 80CCC)
- Tuition fees paid for children education
- 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:
- 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 - Malignant Cancers
- Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
- Chronic Renal failure
- 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.
If LTA & Bonus paid in May’2011 for FY (2010-11) during his Full & Final, last date of working is 04/04/2011 but, it was not included in his salary computation for FY(2010-11) & file the return also, can u pls suggest whether TDS to be deduct or Not on the same.
@Ramesh
TDS can be deducted on this bonus amount, which you will have to declare to your next employer for adjustment.
the link doesnt download properly
@Shanmugam
I don’t see any issue with file download.
Please let me know what issue you are facing.
please advise i am paying interest from July 10 and i have not deducted tds can u explain what problem i have to face ?
@Suresh
If tax is not deposited on time, there is interest penalty which has to be paid u/s 234 B and C for the outstanding amount.
MONTHLY PER ANNUM
A. BASIC SALARY 20154
B. BOOKS ALLOWANCES 2000
C. LTA 4198
D. MEDICAL ALLOWANCES 1250
E. CONVEYANCE 800
F. MOBILE 6000
G. SPECIAL 3598
H. DEDUCTIONS
I. PROFESSIONAL TAX 200 2500 FEB 100 EXTRA
J. NET SALARY 37800 453500
K. BONUS 38000
L. RENT FREE ACCOMODATION 120000
M. MEDICAL INS 11000
N. PERSONAL ACCIDENT 3000
CTC 628000
SAVINGS (MAX 100000)
PPF 25000
LIC 10000
MF 20000
HOUSING LOAN PRINCIPAL PAYMENT 45666
TOTAL 100666
INT ON HOUSING LOAN EMI 24A (MAX150000) 119174
EDU LOAN INT 80E (NO LIMIT) 50000
PLEASE ADVISE ABOUT THE TAXABLE INCOME?
@Kunal
Please download and use income tax calculator to compute income tax liability.
Hi pankaj, My CTC is Rs. 875000 and I have investment of Rs. 128000 which consist of HDFC insurance Rs. 50000, LIC Rs. 30000 approx , PPF 40000 and LIC future plus Rs. 10000. Even after that april 11 month my tax deducted of Rs. 8200/- Can you please guide me for reducing my monthly tax
@Maria
Please go through following answers:
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/46/investment-suggestions
http://www.socialfinance.in/questions/45/investment-advise
http://www.socialfinance.in/questions/82/tax-exemption-component-for-salaried-employee
http://www.socialfinance.in/questions/118/tax-saving
http://www.socialfinance.in/questions/178/investment-advise
Dear Sir,
I have been provided with a Rent free Accomodation of Rs.10000 p.m. in my offer letter. It has been said that I will be provided my salary cheque after deducting this amnt from salary. Now I am confused how should i treat this as i am not geting this amount in hand. Please advise.
I have also downloaded your Tax calculator but it does not have any field regarding Rent Free Accomodation. Also advise what would be the tax treatment for Non-Taxable Allowances (eg. Mobile bills, Journals etc.) if I do not spend them and save them.
@Kunal
Company provided accommodation will be treated as a perquisite and will be taxed in hands of employee.
Perquisite value of the house will be added to your net income and is taxed as per the applicable slabs.
This has complex calculations and thus its not a part of income tax calculator as of now.
If you don’t provide bills for mobile phone, journals then the amount will be taxable and you will get them after tax deduction.
Dear Mr. Pankaj,
I have bought some shares of Public Ltd company on Oct’10 & sold it on Mar’11 with profit. Shall I have to pay tax on this income accroding to my tax slab or any other rate will be applicable on that amount.
Regards,
Sudip
@Sudip
Income tax on short term capital gains on sale of shares when STT is paid on transaction, is 15% flat. It is irrespective of tax slab.
Hi sir,
My package is 4.2 lacs so can u tell me, how i can invest means, what is limit for medical, and like other—, one more thing my company deducting tds every month, so if i will full fill investment than how my tds will i get return from company or from I T office, and what will be way, thanks in advance
@Pritesh
TDS once deducted can only be got back from income tax department as refund, which will only come after income tax return filing.
For tax saving investments, please read following answers
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/46/investment-suggestions
http://www.socialfinance.in/questions/45/investment-advise
http://www.socialfinance.in/questions/82/tax-exemption-component-for-salaried-employee
http://www.socialfinance.in/questions/118/tax-saving
http://www.socialfinance.in/questions/178/investment-advise
Hi..
Income tax paid by me in F.Y.10-11, falls short by approx. Rs5000.Kindly tell me the interest payable on this amount and under which section does this interest comes? ITR-2 has 3 columns for interest payable under Sec 234A, 234B and 234C.Where should I show this interest?
Thanks
@Manoj
1) If your total tax liability after deducting TDS is Rs. 10000/- or more then you are liable to pay advance tax on or before 15th March.Failure to pay advance tax will attract to pay simple interest @1% PM on net tax liability u/s 234B from the due date till the date of actual paid.
2) If your total tax liability below Rs. 10000/- then you are liable to pay self assessment tax on or before 31st July. Failure to pay self assessment tax will attract simple interest @ 1% u/s 234A from the due date till the date of actual paid
@Mr.PANKAJ BATRA
Thanks for the reply.Sir,in your reply you did not mention anything about 234C.I am sending the details,kindly go through it.
Details for assessment yr 2011-2012 are as follows:
Total tax – 290000
TDS – 200000
Advance tax- 1st inst.:30000, 2nd inst.:30000, 3rd inst.:25000 (balance tax due:5000)
Capital gain: NIL
Is one liable to pay interest on this amount i.e. Rs5000, under both sec 234B and 234C?If yes, then kindly compute interest on this amount(Rs5000) under both these sections, assuming one has to file tax before 31st June. Thanks.
@Manoj
Interest u/s 234B is to calculated if the payment of tax is after the last day of the previous year @ 1% per month on the net tax payable. So you will need to pay 1% per month for April, May and June on Rs 5000.
Interest u/s 234C is to be calculated if the advance tax hasn’t been sufficiently paid within the due dates. 30% of tax has to be submitted by Sep 15th, 60% by 15th Dec and 100% by March 15th. For the deficiency in march interest under 234C has to be charged @ 1% only.
So you will have to pay 3% of 5000 under 234B and 1% of 5000 under 234C.
@Mr.PANKAJ BATRA
Sir,you seem to know just everything.THANKS.
One more query: As per section 288A and 288B, INCOME and any AMOUNT PAYABLE or REFUND DUE has to be rounded off to nearest multiple of 10. Is it mandatory to round off?
In the .xml file generated through software downloaded from incometaxefiling site, there is no such rounding off. But the software which CAs and incometax lawyers use does the rounding off under 288A and 288B.
So, If it is mandatory to round off, should one approach CA or income tax lawyer?
AND one last thing, Who is better for getting return filed CA or incometax lawyer?
THANKS.
@Manoj
As per 288A: The amount of total income computed in accordance with the foregoing provisions of this Act shall be rounded off to the nearest multiple of ten rupees and for this purpose any part of a rupee consisting of paise shall be ignored and thereafter if such amount is not a multiple of ten, then, if the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is a multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is a multiple of ten; and the amount so rounded off shall be deemed to be the total income of the assessee for the purposes of this Act.
As per 288B: The amount of tax (including tax deductible at source or payable in advance), interest, penalty, fine or any other sum payable, and the amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored.
It better that you round off figures. Even if you don’t do this, it won’t be much concern.
If you want return to be filed with us, email your details to [email protected]
@Pankaj Batra
Sir my question is also regarding interest on income tax.
Details r as follows:
Income only from salary and bank interest.
Total tax:180270 Tds:164000 Balance tax due:16270
I have not paid any of the advance tax installment yet.
Can you please compute total interest payable on 16270, considering return has to be filed before 30th june.
@Aakash Batra
Under section 234B, As your payable tax was more than 10,000 and you did not pay upto 90% of remaining tax yourself in form of advance tax, you are liable to pay 1% each for 3 months on pending tax amount (3% on 16270=488 Rs)
Under section 234C, following interest will have to be paid:
a. Shortfall till 15th Sept: 30% of 16270 = 4881
b. Shortfall till 15th Dec: 60% of 16270 = 9762
c. Shortfall till 15th March: 100% of 16270 = 16270
Total interest under 234C = 3% of a + 3% of b + 1% of c = 602 Rs.
@Manoj
There is one correction:
Under 234B, An assessee who paid advance tax but the amout of advance tax paid by him is less than 90% of assessed tax, than Simple interest @ 1% is payable on Assessed tax minus advance tax.
As in your case, more than 90% tax was already paid so 234B won’t be applicable.
You will have to extra pay only Rs 50 for 234C (1% of 5000)
@ Pankaj Batra
ok.. Sir, in your statement “Under 234B, An assessee who paid advance tax but the amout of advance tax paid by him is less than 90% of “ASSESSED TAX”
the “assessed tax” means total advance tax to be paid in a financial year, isn’t it ?
so TDS does not come under this assessed tax. correct me if I am wrong.
For example:
say someone has to pay total advance tax of Rs100 in a F.Y. and has paid 90 bucks by 15 march (paying all the installments on time), 234B would not be applicable, since he had already paid 90% of “assessed tax” or “total advance tax”.. even though his employer might have deducted 1lac as TDS.
@Manoj
Yes, here assessed tax means total advance tax other than TDS that has to be paid.
Hi Pankaj,
After inputing all figures in the tax calculator 2011-12, my figure at cell P49 is 1,035,497 and at cell P50 is 2,400. I am wondering why at cell P51 it automatically becomes 998,897. What could be the reason for extra substraction of Rs.34,200?
Please explain.
Thanks in advance.
Manish Saxena
@Manish
Can you please send excel file to pankaj at pankajbatra.com, so that we can find out the issue.
Sent just now. Please check your mail.
Best regards,
Manish Saxena
Hi Pankaj,
I need to know that does PF come under 80C? and is that amount included in 1Lac investment?
@Prajakta
Yes, PF contribution comes under 80-C, but only the employee’s contribution part.
Overall 80-C has maximum limit of 1 lac (which includes tax saving mutual funds, NSC, tax saving fixed deposits, insurance premium etc)
One of your previous posts mentions that Leave Encashment on quitting a job is tax exempt up to a certain limit. Does the excel sheet factor that in? If not, what’s the work around?
@Aakash
There are conditions and extent for leave encashment to be tax exempted. Tax calculator considers whole leave encashment as taxable.
If whole encashment is eligible for exemption, you can skip putting same in calculator for exact tax computation.
Or you can put a negative exempted part in cell C54 to makeup for same.
Hi Pankaj,
This is vijay, my CTC is 6lakhs, but i see a lot of issues with the tax deductions, As far as i know i will come under the 10% tax bracket so out of 6Lakhs, 180000 is non – taxable, and if we add HRA and 80C components which my company say they are tax excempt, it will 99600 for HRA and 100000 for 80C, so the total excempt should be 379600. but i see that my company is not considering the 180000 non excempt bracket for males.. is that legal, please suggest
@Vijay
Please try to understand tax slab rates.
There is 0% income tax on initial 1,80,000 of taxable income, it does not mean that income is exempt from income tax.
If your CTC is 6 lakhs and 99600 is HRA exemption and you have saved 1 lakh towards 80-C then your total taxable income will be 400400 (600000-99600-100000).
Income tax on this taxable income will be as per below calculation:
(180000*0%)+(220400*10%) = Rs 22040
Thanks Pankaj, in that case can you please suggest me with any options for the tax, can i go ahead with 80G/80E and if i do will that be added to as an tax excempt?
@Vijay
You can read about other tax saving methods on below mentioned links:
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/45/investment-advise
tax calculator is not showing any effect of deduction towards leave availed?
@Tejas
Thanks for pointing out the issue.
File has been corrected now, Please download and verify the same.
Respected Mr. Pankaj,
Thanks a lot for sharing the IT Calculator for 2011-12. It has been very handy and helpful.
I had a few queries regarding a few components in my salary, for which I need some guidance.
My CTC PM comes to around 42K, and a few heads in the salary which are not reflected in your excel sheet while calculating the Tax, so where do I incorporate these overheads?
1. Reimbursements for Vehicle Expense (This is given to me apart from the regular Conveyance Allowances every month).
2. Outstation Allowance
3. Special Allowance
4. PF (The company shows a lump sum amount in the CTC, does not give the break up of employee and employer contribution separetely, so I have assumed to take it 50:50).
5. The company says I am eligible for Gratuity as per policy norms of the firm, but the amount is not reflected in the CTC.
I have a declared deductions against Education Loan Interest @60000/- p.a
and I have a PH disability of 40%, so how do I claim for deductions for Section 80U?
I would request you to please guide me regarding the above points.
Thanks.
@Dr. Shiraj
1. Vehicle expense reimbursement can be put under Row 26
2. As of now there is no head for outstation allowance. For now you can put same under Grade/Special/Management/Supplemementary Allowance, City Compensatory Allowance (CCA), Performance Incentive/Bonus, Periodical Journals, Uniform/Dress Allowance, Or Car Reimbursement.
3. Use Row 14 for Special allowance
4. Use row 103 and 111 for PF contribution
5. Gratuity is paid after 5 years of service.
For Education loan interest deduction (u/s 80E), use row 84.
For disability deduction (section 80U) use row 85.
Dear Pankaj,
I have sold my shares in last Financial year ( Feb’11). I am planning to pay the tax this year. Shall I have to pay tax @ 15% (STCG) with 3% cess or I have to pay any penalty.
HI Mr. Pankaj,
I am joining a new co. on a CTC of 18 Lac. This will include my Ph/ net Bills, Actual petrol bills. I dont have any home loan. as you have mentioned in calculator, Driver salary, allowance, car reimbursement and other parts are taxable or not ? and second how much one can claim from it.
Confused, tried a lot to find on net but but failed, pls help.
@Abhigyan
There is no as such limit on phone/internet bills. But your CTC will have fixed component for same. On producing these bills, this component will become non-taxable.
Driver salary is non-taxable upto Rs 900 per month for employee owned car.
Car reimbursement is non taxable for Rs 1800 per month (2400 for a car > 1.6 cc) for employee owned car.
but when i am putting 10000 per month in driver salary & 10000 per month for car reimbursment, calculator is taking total amount.
@Abhigyan
There are different rules for driver salary and car reimbursements.
In case its a company provided car, there is no limit for exemption.
That’s why this has been kept free in the hands of calculator user. You can override exempted amount in C50 and C52.
Hi Pankaj,
I got a notice from income tax department that I’m liable for some more tax,
“e-Return has been processed at CPC – demand determined (tax is payable)”.
I have only salary as only one source of income. I’m unable to determine how the more tax is liable on me. As per the document they had sent it has only difference between the total tax amount. I’m not sure about how they calcuated this.
How can I get this rectified? When I conctacted the help line number they say there was a mistake due to which may people got this kind of letter.
Thanks & Regards,
Kishan
@Kishan
You can calculate income tax yourself and check why there is a mismatch.
If you think calculation in income tax department sheet is incorrect, you should write them back with clarification.
I had bought the shares of Coal India Ltd during IPO through SBI ASBA in Nov’10 and sold it in Feb’11. Does this income comes under STCG? The value of profit is abt 7000 INR.
@Sudip
You had sold shares within a period of one year therefore your income from shares is taxable in the head short term capital gain. The rate of tax is 15% on profit.
@Sudip
Also as the income tax has not been paid before 31st March. There will also be penalty of 1% per month u/s 234 B.
Dear Pankaj,
My source of income are from salary & share trading. During my IT return form fill up (ITR-2), it is not showing any penalty ( u/s 234 B) on STCG tax ( tax value abt Rs 1100 from STCG). Pls suggest if I have to separately calculate the penaly @1% / month and pay the tax or I will pay only STCG Tax @15% wirh cess 3%. For Salary Income, my employer has already deducted the TDS.
@Sudip
You will have to compute penalty @ 1% per month and put it into PartB -TI-TTI under section 6.
Dear Pankaj,
As I have mentioned earlier the value of STCG is abt Rs 7000 for that Income Tax @15% is Rs 1050 & 3% cess is Rs 31.5 and the total Tax payable is Rs 1081.5 and u/s 208 of IT Act, advance tax shall be payable during a financial year if the tax value is more than Ten Thousand rupees. So , Shall my income from this STCG will qualify to pay the advance tax?
@Sudip
You are not liable to pay advance tax but are liable to pay self-assessment tax on the short term gains.
Hi Pankaj,
I purchased a flat in April ’10, however i got the possession in April ’11. My EMI deduction starter from May ’10 and i was staying in a rental apartment until end March ’11. Am I eligible for exemption on interest on housing loan May ’10 until March ’11 and house rent as well?
@Rajesh
Exemption for home loan interest and principal cannot be availed before possession of flat.
So for FY 2010-11, you can only get benefit for HRA.
Having said that, interest paid in the years before possession year can be claimed in five equal portions starting from possession year.
So lets say if your interest paid in year 2010-11 is 1 lac, you can add this (20,000) to claim in 5 years starting from 2011-12. But total limit will remain 1.5 lac for self-occupied house.
Hi Pankaj,
I work for a private company in chennai, My CTC is 3,24,000. My employer deducts 10.3% flat from my monthly salary as TDS. I am not sure of this calculation, can you please explain me how to calculate TDS.
@Neresh
In case you are not a regular employee or working as a consultant then in that case company can deduct flat 10.3% tax on all payments.
You can compute your tax liability using income tax calculator which can be downloaded from http://www.pankajbatra.com/india/income-tax-calculator-india-2008-2009-2010/