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.

 

Facebook Comments

Write a Comment

Comment

3,657 Comments

  1. Hi Pankaj,
    Your Tax caluclator is really good and help full.
    One clarification; after calculating the taxable total income should 160000 be subtracted and then the tax be calculated.

    Regards,
    Rajesh

    • @Rajesh
      There is a misconception that 1.6 lakh is tax exemption/deduction.
      In reality, on first 1.6 lakh there is zero percent income tax.
      So if a person has taxable income of 3 lakh, tax would be (1.6L x 0%) + (1.4L * 10%)

      • Dear Pankaj,
        As you said

        If a person has taxable income of 3 lakh, tax would be (1.6L x 0%) + (1.4L * 10%)

        Now here is my query
        If my total CTC is 7 lakh, the tax calculation will be
        (1.8L X 0%) + (5.2L X 20%)

        or

        (1.8L X 0%) + (5L X 10%) + (0.2L X 20%) … ?

        • @Amit
          Below are the slab income tax rates for FY 2011-12 (AY 2012-13) for a man below 60 years age.
          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

          So In case 7 lakh taxable income, income tax would be (1.8L x 0%) + (3.2L x 10%) + (2L x 20%)

  2. Hey your sheet is very nice and helpful, one more thing you can include

    Stamp Duty and Registration Charges for a home:

    also under 80 C savings.

  3. Sir,
    I want to know whether one can pay house rent to one’s parents or not?
    I live in an ancestral house which is on the name of my grandmother. But now she is not alive. Can I pay house rent to my mother or father? As if there are six legal heir of that house( My father, His two brother and His three sister). But house is still on the name of my grandmother.

    • @Angel
      House rent can be paid to parents for occupying house which is on parent’s name.
      As your grandmother is not alive and you live in a house owned by her, house rent has to be collected by any of the legal heirs. So you can pay house rent to your father for same.

  4. My sister who is an NRI wants to gift a car to me on my anniversary, during her next visit to India. She plans to buy a car in India in my name and pay for it from her funds. Would I be liable to pay gift tax?

  5. Hi Pankaj,

    Would request you to let me know what is the maximum amount of exemption permissible for “Periodical Journals” & “Internet expense” under “Non-Taxable Allowances”.

    I remember someone stating that the max. amount of exemption permissible for Periodical Journals can be max. upto Rs. 800.

    Pls. provide clarification and explain.

    • @Vishekh
      There is no standard rules for internet and periodic journal expenses. This work on reimbursement basis and as per company policy.
      People on higher designation may have more expense on internet and magazines and so they may have a higher reimbursement available.

  6. Hi Pankaj,

    Appreciate your prompt response.

    But presume there must be some ceiling limit to the reimbursement as per IT. If “Periodical Journals” & “Internet expense” are Rs. 10,000 each per month, is that applicable and acceptable as per IT rules.

    • @Vishekh
      There is no ceiling limit set by Income tax department.
      But there has to a balance between basic salary and other components. Ideally total reimbursements should not be more than 15-20% of total salary.
      If its more than that, IT department may ask for original receipts to prove same in case of a scrutiny.

  7. Your Income tax calculator is great but there is no option of putting Agricultural income anywhere.
    How to account for agricultural income?

  8. Sir i have two house and my total rental income is 614000/ i have raised a house loan of rs800000/ and my LIC installment is 3640/per anm plz help me to compute my income tax for current year

      • Great tool. Kudos.

        Noticed that
        – If I enter Home Loan and self occupied, it limits the interest to 1.5L s per rule. Does the excel remove the HRA automatically or I need to remove them from a month
        – If I enter as a rented home, whatever interest I enter is detected from total income. Is that the tax rule? Any reference on this?

        – How to get the editable version?

        • @Rajaram
          HRA and home loan exemption depends on two fields.
          C57 cell: On loan and Self Occupied/On loan but Rented out
          C39 cell: Availing both HRA and Home loan exemption/Availing Only HRA Benefit/Availing Only Home loan exemption

          Case 1: Availing both HRA and Home loan exemption and On loan and Self Occupied: It may happen when you get possession of own house in between financial year. Interest exemption would be limited to 1.5 lac and HRA deduction would be computed based on normal formula of basic salary, rent paid and HRA received.

          Case 2: Availing both HRA and Home loan exemption and On loan but Rented out: It may happen that you own a house in a different city but job is in different city. So you don’t live in your own house and have rented it out. This case should not be selected in case you already own a house in same city or at a commutable distance from office and have got possession of house.
          In this case its advisable to show house rent (if its not rented, a notional rent has to be shown). There is no limit of interest exemption in this case and whole interest payment (even more than 1.5 lac) can be exempted.

          Case 3: Availing Only HRA Benefit and Anything in cell C57: HRA deduction would be computed based on normal formula of basic salary, rent paid and HRA received. This case should not be selected in case you already own a house in same city or at a commutable distance from office and have got possession of house.

          Case 4: Availing Only Home loan exemption and On loan and Self Occupied: HRA deduction won’t be computed. Max interest exemption would be 1.5 lacs.

          Case 5: Availing Only Home loan exemption and On loan but Rented out : HRA deduction won’t be computed. In this case its advisable to show house rent (if its not rented, a notional rent has to be shown). There is no limit of interest exemption in this case and whole interest payment (even more than 1.5 lac) can be exempted.

  9. Hi Pankaj,

    Currently I am on deputation to United Kingdom from Nov’10. I will be returning back to india by January 2012. My company says that I will have pay the taxes in india from April 2011-March 2012, whereas in the financial year 2011-2012, i would have only stayed in india for three months(91 days).

    • @Frank
      An income tax payer would have a resident Indian status in a financial year if
      1. he is in India in that year for an period of 182 days or more; or
      2. having within the four years preceding that year been in India for a period of 365 days or more, is in India in that year for an period of 60 days or more.

  10. 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.

  11. Have received a foreign currency gift remitted from overseas by my elder brother, an NRI. The FIRC states that the person remitting is my brother’s company based in UK.

    The ITO says that gift is received from company.

    Please advise.

    • @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%

  12. Dear Pankaj

    Can you please help me out about the tax calculation details and how much saving s i need to have .
    My salary is 36k per month nd i have invested in 4 policies nearly abt 100000per year, So can u help me to understand the savings details & upto what amount i can invest to avoid taxes.

  13. Hi I have purchased a 1bhk flat. It is under construction. But I am paying EMIs for the disbursment done by the bank toward the % of work complete. So can I ask tax benefit on this amount? Please guide me.

    • @Yogesh
      You can only claim tax exemption for house loan interest from the financial year in which possession is taken.
      All interest paid before that year, can be claimed in five equal installments starting from possession year.
      So lets say you paid total 2 lacs interest before possession year, so you can add 40,000 in interest claim in next five year’s claim.
      But total claim should not exceed 1.5 lacs for self-occupied house.

      • Thanks a lot Pankaj for this information. So just to confirm, do I need to add the each installment under interest claim with current year’s amount? If so what documents should I submit? because the installment amount belong to the previous years than possession. Is there any format for this? Please guide.

        • @Yogesh
          Yes, you would need to add installment with each of these five year’s actual interest claim. No document needs to be submitted to income tax department.
          If your employer asks for it, you can show interest certificate for all previous years (before possession), along with current year’s interest certificate.
          Interest certificate would be issued by your bank from where home loan has been taken.

  14. Mr. Pankajbhai thank you for Putting detail for Income tax, Till to date i don’t know totally point which is including to calculate Income tax.

    Thank you.

    Regard,

    Mehul

  15. 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?

  16. If I leave India on May 29, 2012 and remain outside the country (I will be in India just for 59 days in FY 2012-13) and conduct business outside India & pay taxes to the foreign government then will I be considered NRI for FY 2012-13. Would I be exempted from adding my overseas business income here in IT Return for AY 2013-14?Please confirm. Thank you.

    • @Shiv
      From FY 2012-13, once direct tax code is applicable, a person will be deemed as resident only if he has also resided in India for 365 days or more in the preceding four financial years, together with 60 days in any of these fiscal years.
      So if you have lived in India for more than 365 days (total) during duration Apr 2008 – Mar 2012 and stays less than 60 days in India in FY 2012-13, you would still be normal residents and have to pay income tax on global income in India.

      • This definition as you mentioned is still unclear. One is deemed resident only if s/he together with 60 days but as I mentioned if I am not in India for more than 59 days so above definition if resident does not fulfil and one should be deemed as Non-resident.
        Do you agree?

        • @Shiv
          There is other condition you have to fulfill to make you with non-resident status which is: You should not have lived in India for more than 365 days (total) during previous four years.