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.
Sir,
Please give the details of SCSS (Senior Citizen Saving Scheme) – and – how is it related to 80 C ?
@Dr S B Kalidhar
You can read details about SCSS on this page: http://www.rbi.org.in/scripts/FAQView.aspx?Id=62
You will get 80C deduction for investment in same upto Rs 1 lakh total 80C deduction.
Thanks a lot, Pankaj
Thanks for your nice information
Thank you for the conise information and the tax calcluator.
I am a retired employee. To file a return please tell me whether interest received from post office sr.citizen fixed deposit and “mis” will be included alongwith monthly pension.
@S Balasubramanian
Interests from post office fixed deposit and Monthly income scheme are taxable and would be added to your taxable income.
As per our salary structure exgratia is there. Please tell me where to mention in this calculator.
Thanks
Naredra.N
@Narendra
You can use special allowance column for same.
how much percent expenses are allowed from insurance commission income while computing tax return for A/Y 2011-12
@Rasheed
There is no fixed percentage. Whatever expenses you have incurred to run your business, can be claimed.
to what extent driver’s salary is exempted which is being paid through pay slip @6000 p.m
@K Rama Krishna
Driver salary is exempted only upto Rs 900 per month.
Dear pankaj
I am paying 2500 rs as mess charges and electricity charges pm which is deducted from my salary account. Is this amount is taxable or I will get any concession.
@Sourabh
If these charges are deducted for food provided in office, then it can be taken as non-taxable like food coupons (Sodexo etc.)
I am not sure about purpose for electricity charges.
Thank You Pankaj,
Really The Sheet is very helpful.
hi , i want to clarify on gift from non relative. is 50000 limit is exemption limit or a ball park figure .any gift received from non relative is taxable above 50000 or total amouti.e if non teltive gives 50001 as gift incash or kind entire 50001 is taxable or the 1 re.
@Rahul
Amount/Gifts received from non-relatives for value above 50,000 limit would be taxable. Only amount exceeding this limit would be taxable and not whole.
Please note that this amount is value of all gifts received in a financial year from all sources.
Say, total gifts received by you was of value Rs 70,000 (40000 from one person and 30000 from other), then taxable amount would be Rs 20,000.
wHAT IS THE TAX LIABILITY OF A LADY WITH INCOME 5.79 LACS. TDS ALREADY PAID IS 230000. 80g INVESTMENT IS 1 LAC. 80C INVESTMENT IS IS 740000. pl let me know the tax.
@Balakrishnan
Please download and use income tax calculator to compute income tax.
Dear Pankaj,
Professional update allowance is now given by the govt. for scientists (CSIR) in three slabs 10, 20 and 30 thousand per year based on the grades. Is it taxable or not? Should we remove from taxable salary before calculation of income tax?
Regards,
Singh
@Singh
Generally its non-taxable on submission of original bills to employer in private organisations.
For CSIR, it may be non-taxable u/s Section 10(14).
Thank you very much.
Regards,
Singh
please let me know the website for home loan tax savings calculator
@Sudip
The calculator provided on this page has provision for home loan tax saving components too.
Sir,
My query is related to income from rented property.
Myself & my wife stay with my parents.
We have purchased 2 flats in last two years & ownership of flats in on both ( self + wife’s).
Both flats are rented out.
We both are in 20% tax slab.
Now pl let me know what is beneficial to minimize the income tax on rent.
Details of flats are under:
Flat no. 1 :
Interest component : 250,000
Principal : component : 80,000
Rent received = 10,000 pm = 120,000 per year
Property Tax : 10,000 /-
EMI for flat no. 1 paid by me.
Flat No. 2
Interest Component : 180,000 /-
Principal Component : 30,000 /-
Rent on flat no. 2 = 7000 pm = 84000
Property Tax : 2,000 /-
EMI for flat no. 2 paid my wife.
Pl let me know what shall be beneficial to me
Option I :
Flat no. 1 : to be declared as self occupied
Take benefit of 150,000 on self occupied property
&
Flat no. 2 : to be declared as let out
Option : 2
Flat no. 1 & flat no. 2 , both to be declared as rented property.
Pl let me know where i can save maximum tax or any other option suggest by you.
Loan for Flat no. 1 is for 15 yrs – 3rd year is going
Loan for Flat no. 2 is of 20 yrs – 2nd year is going
As off now, we are not planning to shift to any of the flat.
Both the flats are in same area where we stay.
Thanking in anticipation
Regard
Abhijeet.
@Abhijeet
It all depends on how you are accepting rent. If its being accepted in white and shown in income, then it would be better to show houses as rented and claim full interest exemption.
If rent is being taken in cash (like most of the people do) and this income is not shown anywhere, then both houses can be shown as self occupied, one by you and one by your wife.
If house is shown on rent, then notional rent must be added into income.
hi. my gross income = 10,10,000 (Above 10Lakh). my SB interest = 15000 (fifteen thousand). so i can pay tax on sb interest for which amount 15k or 5k (15k-10k)?
pls let me know.
@Niranjan
For FY 2011-12, there is no tax exemption available on saving bank interest, so whole 15K would be taxable.
For FY 2012-13, only amount above 10K (Rs 5K in your case) would be taxable.
Dear Pankaj,
During Financial planning during jan-2012, I had not given details about Tax Savings like HRA, Conveyance and LIC insurance policies to my company and same has not been taken into account in my Form-16 and TAX has been deducted. Can I take its benefit while filing ITR and take my tax refund. IF yes, do I need to send photo copies of LIC Premium payments and Original HRA receipts similar to what I submitted to my company for 2010-2011 ITR.
@Abhay
You can claim 80C deduction (LIC insurance) while filing income tax return. There is no provision to claim HRA and conveyance allowance in ITR.
There won’t be any need to attach copies of proofs with ITR.
total income rounds to around 13 lacs. but no breakups in salary for reimbursements on medical bills, telephone & internet, car expenses, driver expenses, food coupons etc. my company is not ready for it either.
taken loan against property as home loan. is this loan applicable for deduction on principle amount and interest?
can HRA and this loan together be applied as the loan is against my property in kerala and i stay rented in bangalore.
medical insurance is given to family by company which does not include in salary.so i think this can also not be included. pls advice.
paying 2500/- monthly donation to a charitable trust for aids patients and their children. is this applicable for deduction?
please advice ways to save tax. thanking you in advance.
@Nisha
You can claim deduction for home loan principal and interest payments along with HRA, as your owned house is not at commutable distance from workplace.
Medical insurance premium is paid by company so you cannot claim deduction for same.
If charitable trust is registered under 80G deduction category (you can see same on receipts), you can also claim deduction for same.
Also, please read answers to similar questions here:
http://www.socialfinance.in/questions/7/tax-saving
http://www.socialfinance.in/questions/45/investment-advise
HI this “Financial” year first three months went for internship and then 1 month holiday and then my emplyment started. So does the income from intrenship amount gets added to my total income(already 10% tax paid for internship amt)?
If so where to get the details of how much i have to pay to the IT department?
Thanks
@Balaji
Yes, internship amount would also be added to your taxable income.
You would need to recompute tax on total year’s income and match it with total tax deducted by all employers. If there is some tax pending, you would need to pay that before filing income tax return.
You can use income tax calculator to compute income tax.
Hello Mr Pankaj,
I have a query regarding the penalty charged on the premature closure of fixed deposits. Say I have opened a FD on 1st April 2011 with a bank. As my PAN is updated with the bank they will deduct TDS every quarter @ 10% over the accrued interest if my net income from the bank exceeds 10,000. Say 20,000 Rs were accrued at the end of Jun 2011. Bank deducts 2000 as TDS for that month. Further, for some reason I need to prematurely close my FD on say 1st July 2011. Now, at the time of premature closure, bank charges me some penalty, say 2000. The same gets adjusted in my interest/income. At the end of the financial year, the Form 16A or Form 26AS shows the income as 20,000; but, my actual income was 20,000-2000=18,000. So my question here is, 1) Can I deduct penalty from income or penalty gets different treatement? 2) Can I claim a refund for the extra income 2000? 3) Does the bank adjust the penalty in future tax deductions?
@Siddharth
There are no tax deduction/exemption available for penalties.
Do you meant to say that I need to pay tax on penalty also? Penalty is the part of my income not paid to me by the bank (but used for TDS calculation) in case of a premature withdrawal.
@Siddharth
As interest was accrued in Jun 2011, bank had to deduct 10% TDS and deposit it with income tax department. Further as you acted against the deposit contract, they deducted penalty for pre-mature withdrawal. This is a penalty/fine. There is no deduction/exemption available against a penalty or fine.
Bank is right in form 26AS saying that they paid you interest of Rs 20k. 2000 was deducted as penalty and not as less interest payment.
Thanks Mr Pankaj.
I understood what you explained about the penalty. I missed to mention one point here.
In case of a premature FD closure, the interest rate also gets revised. So the accrued interest was @ 12% say, and on a premature closure the interest to be paid gets recalculated by say 7%. Not considering any penalty here. So now my income got revised/reduced. Earlier it was projected @ 12% and used for TDS calculations. Now I am actually paid @ 7%. So can I claim this 5% difference in ITR?
@Siddharth
You may file income tax return by showing less interest income. But income tax department would find a mismatch in form-26AS and ITR and they may raise a notice for tax demand. Then you will have to explain them with all proofs. If they are convinced then its fine.