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, 2,896 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, 26,867 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, 10,838 hits)
- FY 2020-21 (AY 2021-22):
Income Tax Calculator for financial year 2020-21 (141.5 KiB, 24,643 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, 47,201 hits)
- FY 2016-17 (AY 2017-18):
Income Tax Calculator for financial year 2016-17 (136.5 KiB, 41,346 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.
This time PDF Utility is not uploaded on incometax website… any idea by when it would be coming or it is not coming this time??
@Mohit
You can download PDF forms from this page: http://www.incometaxindia.gov.in/download_all.asp
These are ITR Forms but i am talking abt Utlity file through which we can generate XML file and then file our income tax online.
Right now Excel file is there but previously PDF file is also there.
@Mohit
PDF Return generation forms were not available even last year too. They were available only for ITR1/2 for AY 10-11.
As complexity of returns increases, it becomes hard for department to maintain multiple versions.
Negative balance in saving bank account will impact my credit history or credit points ?? any idea ??
@Mohit
As of now, saving bank account details are not reported to credit rating agencies like CIBIL.
Only loan and credit card details are shared.
I have to two bank accounts which i am not using and having negative balance … so what you suggest … closing them permanently or keep it like this only, bank will close automatically after some time ??
@Mohit
Banks don’t close account automatically. They mark it as dormant after a specific period of inactivity.
Its always better to close unused account to avoid any inconvenience later on. You never know, in future if you open another account with same bank, they may link both and deduct non-maintenance charges.
Dear Pankaj
kindly help me how can Rs 5000 for preventive health check up can be utilised in what form and certain test required
@Arun
You can get routine health checkup done for you and your family and claim deduction for same.
This may include normal thyroid, Cholesterol, Haemogram, TMT, X-ray tests etc.
Dear Pankaj
will this Rs 5000limit be excluding Rs 15000 limit or it is included
now if get checked above said tests and can i claim tax benefits by submitting is bills
@Arun
This 5000 Rs is a sub-limit under existing 15000 80D limit.
You can get test done and claim tax deduction for same u/s 80D.
I want to know that if donation is not to be done with cash. so if i want to donate more than 10000 rupees, may i do with cheque? and do i have to present photocopy of cheque of donation while filing my income tax return?
@Kakkad
Donations above 10,000 Rs should be done through cheque only, if you want to avail tax benefit u/s 80G.
There is no need to submit copy of cheque with income tax return. If needed, income tax department can ask for same later.
Hi,
My father is retired. How can he calim “Medical allowance/Reimbursement” while computing Income Tax and whom he should be sending bills as proof?
Thanks
@Krishna
Medical reimbursement is employer provided benefit. If your father does not have salary income and is not employed with anyone, he cannot claim tax benefit for medical allowance.
Hi Pankaj,
Thanks a lot for the clarification.
the finance minister is making a clear FOOL of people of India.
The finance minister thinks all people are FOOL.
He has increased a tax limt to Rs. 2 lakhs by Rs. 20,000/- and at the
same time he has withdrawn the Rs.20,000/- tax rebate under section
80CCF.
He thinks he is smart enough to make people FOOL…
THINK twice finance minister, we are not FOOL…
we have ancestral agricultural property and sold for 35lakhs on 01/06/2012 we are 5 brothers and sister divided it equally shall we have to pay income tax for sale consideration united or individually.what wil be tax rate are there any exemptions kya
@Noor
You will have to pay income tax on long term gains individually.
Income tax is payable @ 20% on long term gain computed with indexation benefit.
You can save income tax by investing into residential house property or into capital gain bonds.
Sir!
I am associate NCC Officer in my school. I am getting Rs.750/- per Month honorarium for this job. This amount is taxable or not? Audit members say that this amount is taxable. Please clear the problem. By R.Baburaj Jain, Puducherry
@R.Baburaj
NCC officer honorarium should be taxable.
Sir,
Is it obligatory that 26 AS should be complete and accurate in every respect before taking up of e-filing of the Income Tax Return ? In the AY 2011-12, I had deposited Rs 92,000 as incme tax thro’ bank. On account of some mistake, it entered in 26 AS for the AY 2012-13. After taking help of the Assessing Officer, I could get the benefit of Rs 92,000 in AY 2011-12. The entry of the same Rs 92,000 is however still there in 26 AS for the AY 2012-13. I am ignoring this entry because I have already availed this deposit for the AY 2011-12. I am to e-file the income tax Return for the AY 2012-13. Though I am able to VALIDATE every page of the RETURN yet I am unable to generate XML. The reason behind the same may be the wrong entry of Rs 92,000. How can I succeed in e-filing under these circumstances. I have not bothered to go for digital signature because I am to e-file as an individual. I used ITR 1. Guide me for a success in e-filing.
@Dr S B Kalidhar
The reason for non-generation of XML should not be form 16AS entry. Excel file does not fetch tax details values online. There might be some other issue with file.
Sir,
Thanks for your quick response. I could trace a technical error. I succeed in eifile submission of the RETURN.
The Post Offiice does not accept Speed Post for the envelope of ITR V because the address has Box No. The only alternative left is then Ordinary Post. That means there are no two alternaives for sending ITR V.
The IT Dept should accept scanned copy and it should reach thro’ the email address of the assesse (no other email address may be accepted to rule out a foul game).
Ordinary Post alone is NOT a RELIABLE option.
@Dr S B Kalidhar
Last year I sent ITR-V through speed post only. Its being accepted at post offices, I am not really sure why your local post office rejected it.
On income tax website too (https://incometaxindiaefiling.gov.in/portal/at-a-glance.html), “BY ORDINARY POST OR SPEED POST ONLY” is mentioned.
Income tax department is in process of making this process simpler by accepting returns without need of sending ITR-V without digital signature, by validating against tax payee information.
Dear Pankaj
I have no other income except interest from Bank Fixed Deposits.What will be my income tax liability?
@S.Ghosh
Interest from bank fixed deposit is taxable like any other income.
In case interest income from fixed deposits and bank account is more than non-taxable slab (2 lakh for FY 2012-13), you need to file income tax return.
You need to compute income tax on such income and pay taxes, if applicable.
Dear Pankaj
I have a taken home loan 5 years before and presently the outstanding is ~ 7.5 lac. The annual interst benefit (with respect to tax) is about 80,000/- and principal amount comes to Rs. 14000/-
What i want to know is……. will it make more sense to pay 7.5 lac to bank and clear my loan and pay tax or i continue the home loan at the normal pace and save tax on interest.
Please advise
regards
Arun
@Arun
Say, if you don’t take home loan benefit of 94,000 net income tax payable would increase by Rs 28764 in case you are in 30% income tax slab.
But the same time, you are paying around 80K to bank as interest to save this 28K as income tax.
If you deposit 7.5 lac into fixed deposit/FMP you would earn around 47K after taxes as interest (considering 30% income tax).
So net benefit of not prepaying home loan would be around 47+28=75K. Its still less than 80K, so it would be make sense to prepay loan and live without tension.
This is considering the fact that there won’t be much charges on prepayment of loan.
Thanks Pankaj
venry useful information.
Is interest earned on saving bank accont taxable? Also interest earned on Fixed Deposit is taxable or not? If yes where to put that component in ITR-1
@CMU
In FY 2011-12 (AY 2012-13), both interest from saving bank account and fixed deposits are taxable. Same needs to be put in Row 43 (income from other sources) section.
Hi Pankaj…i have a regular problem regarding Interest Income every year and hope you can help.
I have some FD’s running across FY’s, but the Banks accrue interest on them after the end of each FY in May.
So for FY ending Mar 2012, they added interest to my FD’s on 15 May 2012. They also deducted 10% TDS (around 10K).
Now after this Interest my total tax liability increased from 20% to 30%, so i paid another 20K TDS on that interest in May 2012 after seeing the Interest income.
Since the Interest was only deposited on 15th May 2012 for FY 2011-2012, am i liable to pay Interest penalty under Sec 234 B / C because the TDS was not deposited by Mar 2012 (obviously i did not know about that income in Mar 2012) ?
@Vikas
Bank may have only deposited TDS in May but Interest may have accrued in March itself. Its standard practice to pay TDS by May for previous financial year.
Bank should have already shown this accrued interest in your bank/fixed deposit statements.
You should check form 26AS and check, in which assessment year the interest has been reported. If its AY 2012-13, then you will have to pay additional penalty u/s 234B.
Hi Pankaj….many thanks for your reply.
In Form 26AS the date of payment is 31-3-2012 and date of Booking is 15-5-2012. The assessment year is 2012-13.
As soon as i saw this in the Form 26AS (which takes atleast 2-3 weeks to update), I paid the additional TDS in Apr -May 2012.
I don’t think it was possible for me to know the interest income prior to 31-3-2012…..so is it logically right for me to pay penalty on this ?
@Vikas
If the pending tax amount would have been less than 10K, there would not have been any issue as penalty is not applicable below that amount.
Income tax department may send you notice with extra tax demand because of their income tax computation. You have to fight with them with these proofs and prove that it was not in your hands.
I would advise you to pay whatever is the interest amount u/s 234B and solve the issue. It would be less than 500 Rs I guess.
Thanks Pankaj……yeah i will take your advise.
But tell me one thing….i noticed that you only mentioned 234B in your reply, but the same logic will also apply for 234C since i did not pay 100% of tax by 15 March, so i will even will have to pay that. Do you agree ?
@Vikas
As interest was accrued on 31 March, tax liability u/s 234C may not apply.
Hi Pankaj…..i tried using the available online tax calculators and after entering my details, by default they estimated about 2300/- as additional interest penalty to be paid as part of u/s 234C (apart from 700/- in u/s 234B). The reason for that is that they do not take into account the date of interest income. I guess i will to pay the additional 3k penalty for no fault of mine.
I think there is definitely something wrong here….either the last date of paying tax should be changed to April end OR the banks should be asked to credit interest income well before March end. This is really frustrating.
@Vikas
You can also try computing interest penalty with income tax return form. You can skip paying additional interest amount as interest was accrued after last date of Tax submission (15th march). In case a notice comes from IT department, you can send them form-16A from bank to prove same.
Sir,
When the interest income from FD in a bank is more than Rs 10,000 per year (say Rs 50,000 ) – then – is it in order to add Rs 50,000 in other income to calculate income tax – and then – subtract Rs 10,000 from the total income because interest up to this limit is free from income tax ? Is it possible to take FD as a SB A/C for the purpose of income tax payments. Please clarify.
@Dr S B Kalidhar
Interest from Fixed deposit is totally taxable and no deduction is available on it.
Rs 10,000 deduction is only available for saving bank account interest.
Fixed deposit interest cannot be treated as saving bank account interest.
Dear Pankaj
kindly let me know how can i invest in NPS for my retirement as i am working in private sector
@Arun
Read more details about NPS here: http://www.pankajbatra.com/india/new-pension-scheme-nps-india/
Dear Pankaj ..I get a major part of my salary under the head -Consultant Fee..kindly tell me …it comes under which of the following heads under this calculator..??
@Saurabh
You can keep it under special allowance.
In the IT Calculator for FY 2012-13, the investment under 80CCF is not getting updated in main sheet and hence error in calculating tax amount.
@R
80CCF deduction has been discontinued from FY 2012-13, so calculator does not take figures for same into account for computation.