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, 2,895 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, 162,706 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.
Dear Sir,
I was employed with a certain company, from January 2008 to August 2010. The company paid me handsome salary and thus also TDS was handsome.
On checking my 26AS statement online, I realized that there was a mismatch in the TDS filed for December 2008 – the status shows as ‘U’. And for the same reason the IT Department deducted approximate Rs 15000.00 from my eligible rebate.
I shared the entire details (mismatch in 26AS and deduction from rebate to cover for the mismatch) with the finance department of the concerned company i.e. my previous employer. All they have come back is saying that “Everything is correct and right at their end. I need to followup with the IT Department to get the issue resolved. The company cannot do anything in this”
I understand, that the employer needs to file a correction to resolve this. But seems like they dont want to do it.
Kind request to help me on how to resolve this.
Regards,
Suhas
Suhas Kabra
@Suhas
Your query has been answered already here: http://www.socialfinance.in/questions/3506/income-tax-deposit-error-by-employer
I have the 143 (1) for AY 2011-12. It gives the information of deduction towards 2008-09 mismatch but not the details. Should I file a RTI query with the Income Tax department to know the exact details of mismatch to get it resolved. Regarding the correction, I had already filed it almost 6 months ago, but yet to hear back from the Income Tax department.
@Suhas
You already know the reason of mismatch. As you said, its because of your employer’s incorrect TDS filing.
Your comment on this link too have an answer: http://www.socialfinance.in/questions/3506/income-tax-deposit-error-by-employer
1. My company does not pay a conveyance allowance of Rs. 800 pm.
– Can I claim this conveyance allowance of Rs. 9600/- p.a. as exempted while filing
my IT returns as I end up spending commuting to my office
2. I have taken a balance transfer of Home loan from ICICI to Axis and Axis has
asked me a compulsory Bajaj Home Allianz Shield Insurance
– Can I claim this amount for a tax exemption
@Dhatchayani
1. If your salary structure does not have conveyance allowance component, you cannot get deduction for same.
2. I think, this plan is a single premium ULIP. 80C deduction on insurance policies purchased after 1st April, 2012 would only available if premium is less than 10% of sum assured. Benefit for existing purchased policies to continue.
Most likely, this insurance plan has been un-necessarily sold to you by Axis bank manager/agent to earn extra commissions. If its not already taken, I would advise you to tell them that you don’t want this policy and for safety reasons, you can buy a online term insurance plan (from HDFC or ICICI).
sir, I also don’t wanted to take this insurance, but the bank has made it compulsory otherwise I was said that the procedure of the entire loan process will not be proceeded, as I have already ended up paying an hefty processing fee, I could not go against it.
We customer’s are harassed by the banks on these levels, is there no complaint forum by RBI, where we can complaint against these banks harassments and see to that it doesnt happen to any other poor people ?
@Dhatchayani
You should first file a complaint with Axis bank (http://www.axisbank.com/WebForms/grievance-redressal/grievance-redressal.aspx).
If you are not satisfied or they don’t solve your issue, you can file complaint with RBI here: https://secweb.rbi.org.in/BO/precompltindex.htm
Dear Pankaj,
With reference to point no. 4 –
Within the existing limit for deduction allowed for health insurance, Rs 5000 deduction for preventive health checkup is allowed.
I need clarification
a) For getting Rs. 5000/- exemption , do I need to decuct it while calculating my taxable income?
b) Is it mandatory to hava a medicalim/health insurance for getting this additional exemption of Rs.5000/- or not
c) Do I need to keep the proofs intact for the Rs. 5000/- expense incurred for medical expense. ?
I shall be thankful for your response if you can explain and throw more light on this aspect,
@Anurag
1. Yes, Rs 5000 would be deducted from taxable income u/s 80D. Max deduction u/s 80D would remain Rs 15000 (including medical insurance taken for you and your family).
2. Having a medical insurance is not mandatory for getting this deduction. If you don’t have medical insurance, you can claim upto Rs 5,000 u/s 80D for medical checkups.
3. Yes, you should keep proofs for expenses done. It may also need to be submitted to employer for TDS computation.
Dear Pankaj,
Excellent information
Thank you
Muralidhar Rao Y
Hi I have a flat in Delhi, for which i will get possession by july’13. I am working in BLR and living on rent. For my delhi flat i have a home loan. how can i recieve exemption for the home loan that i am repaying.
regards,
Piyush.
@Piyush
You would only be able to claim exemption for home loan principal and interest payment from the year in which you get possession (FY 2013-14).
Whole interest paid before possession year can be claimed in five equal installments per year starting from possession year.
very good income tax calculation formula
hi i have a home loan but i given my house on rent so where in itr1 form i can mention the rent received amount please help
@Nayana
In field income from house property you can mention below amount.
(Rent received – (30% deduction for maintenance + any municipal house taxes paid) – Home loan interest paid for the year.
Thanks a lot 🙂
Hi Pankaj,
1. Where does one post short term losses from sale of shares? In schedule CG, the field 2 2d only accepts positive values. So in that case, should I use (2a – 2 biv) in schedule CG, where 2a is entry price for all shares, and 2biv the sale price? Where does one post brokerage?
2. If the conveyance allowance of Rs 800 pm is paid to me by my company, do I still need to have receipts for these?
3. My company also pays me medical reimbursement of Rs 1250 pm. However, (fortunately) I have had no expenditures on health and therefore no receipts. What amount can I still claim as deduction, and under which section.
Best wishes
Pradeep
@Pradeep
1. You will have to enter Full value of consideration (sale value), Cost of acquisition (purchase cost) and Expenditure on transfer (brokerage, service tax, STT etc) into CG-OS sheet under short term capital gains section.
2. No receipts/bills are required for conveyance allowance. It would already be made non-taxable by your employer (check form-16).
3. If you have not claimed medical reimbursement with your employer by providing them original bills, you won’t get any deduction for this component.
Hi Pankaj,
I have two questions.
1. Do we need to submit the prescriptions also along with the bills while claiming medical reimbursements?
2. I have an option of showing my Internet bill (50% of it will be considered). Does the connection need to postpaid only or will prepaid also do? (For telephone reimbursement, it should be a postpaid connection. That’s why this doubt came into my mind).
@Ravikishan
1. As such there is no need to submit doctor’s prescription for medical reimbursements.
2. Internet bills should be of a postpaid connection. In case of prepaid you may not get any bills for usage.
But for the Internet connection, I do get a receipt that I have paid so and so amount for so and so period. Won’t be accepted?
Example: I have a receipt with me that says I have paid 2400 for the coming six months. Will this do?
Thank you very much for your instant replies.
@Ravikishan
I am not really sure if only the receipts for advance payment would be accepted or not.
Please ask it from accounts department of your employer. If they are fine with it, that’s good.
Thank you very much Pankaj…
Great activity on website. like the site.
Pankaj great work. thanks.
Getting to know the rules here: have two questions on LTA
1) when can we claim the LTA amount (which month of the year- i.e, is it specified as a rule). If i have travelled in august 2012 i am planning to claim the amount same month so that i get paid that relevant amount same month. Or should i have to wait untill the end of Financial year ie the company has to wait untill March 13 (financial year end) to make that payment if specified as a rule?
2) Will the eligibility amount for claim be only uptill August 2012 (the month i am taking LTA) or the eligible amount will be only till July 2012 the past month. Just wanted to stretch the claim amount.
PS: currently i am in Aug 2012 and planning to take 5 days PL for Leave travel.
Thanks.
@Naveen
1. There is as such no time frame for LTA claim. If you have traveled in Aug, you can claim reimbursements in Aug itself.
However company may decide to pay only on pro-rata basis till August. After August you may get amount per month. Say your LTA amount is Rs 36000. Then even if you claim for full amount, company may only pay Rs 15000 in Aug salary and rest paid can be paid as Rs 3000 per month.
2. Whenever you claim amount, you would be eligible for amount till that month end. Point 1 also explains some part of it.
It was a quicky. I am getting to KMI.
Point no 1. last sentence sounds interesting and encouraging so as to go full throttle and claim it all. Its kinda clear now how rest of the amount can be paid on a monthly basis. I will also confirm with my HR as you said or rather demystified here in this blog page the LTA conundrum which differs from company to company.
Thanks again Pankaj.
Hi Pankaj,
Advance tax is supposed to be paid on foreign income. Is this correct?
However, in most cases it is not possible to know when this income will come in, except maybe for fixed income sources.
If advance tax is to be paid on fixed income foreign assets, then I presume that interest will also have to be calculated. If that is the case, then is there any quick way of calculating this interest?
@Rivka
Advance tax is to be paid on all sort of incomes if tax liability is likely to be Rs 10000 or more. In case of salaried employees, contract work, bank fixed deposits some part may already be paid in form of TDS. Paying rest is individual responsibility.
If advance taxes are not paid on time, interest may be chargeable u/s 234C. Simple interest at one percent per month is payable on a difference amount for that period.
Advance tax needs to be deposited as below:
1. 30% of advance tax payable on or before 15th September
2. 60% of advance tax payable on or before 15th December
3. 100% of advance tax payable on or before 15th March
You may pay some taxes on basis of a projected income.
Hi Pankaj,
Nice Information.
I have one query on Medical Rs 15000 non taxable amount..
I have taken one term insurance from Aviva, Where i am paying 8000 per annum. Does this 8000 for term insurance can be shown under Rs15000.
Also please elaborate/explain further on your below comment this
“Within the existing limit for deduction allowed for health insurance, Rs 5000 deduction for preventive health checkup is allowed.
@Ashish
Term insurance expense cannot be shown in medical reimbursement/insurance.
This expense would be allowed for deduction u/s 80C.
For health checkups, Rs 5000 would be deducted from taxable income u/s 80D. Max deduction u/s 80D would remain Rs 15000 (including medical insurance taken for you and your family). Having a medical insurance is not mandatory for getting this deduction. If you don’t have medical insurance, you can claim upto Rs 5,000 u/s 80D for medical checkups.
Hi Pankaj
Sir, Last year one of my friend had received a demand notice for the Ass. Yr. 08-09, although he had claimed refund of Rs 18500.
On contacting the assessing officer we found that demand was generated as the bank had not correctly filed their return , so few TDS entries were missing in 26AS.
Later we got the 26AS rectified and got the refund of Rs.18200.
Sir the refund was for Ass. Yr 08-09 but no interest was paid on it, so we again contacting the assessing officer, who told us that the refund was system generated and nothing much could be done about it.
Sir is he eligible for any interest on refund? and at what rate is the interest on refund amount calclated?
@Akash
I am not really sure if they would pay interest on refunds as they would say that issue was not at their end.
He may file RTI to get details on why interest has not been paid.
Interest rate on refund is 0.5% from the date of payment of such tax till the grant of refund.
Hi Pankaj,
Do you have any information or link where i can see all the components where i can save tax..Like HRA, LTC, Medical Reimbursement, Conveyance,Rajiv Gandhi Equity scheme, Home Loan etc..All components of 80C,80 D and all the areas where i can save tax..
I wanted to know how i can save my tax or i have to pay minimum…Please let me know all areas where i can invest and save tax..
This would be a great help for all of us
@Ashish
This page has everything you asked for: http://www.pankajbatra.com/finance/income-tax-calculator-2012-2013-2014/
I need some clarification:
Say A working couple do not wish to BUY a house and stay on rent for the rest of the life!
1. Can both of them claim the HRA Exemption separately?
2. Since there is no “Home Loan”, and they are cash rich, and wanted to deposit all their life time savings in PPF, Bank FDs, Post Office Schemes…..All Debt instruments.
3. The bank deposits accrue interest, which has to be shown under “Income from other sources”, which shall add to the existing income(s).
4. What is the loss of opportunity for the couple for NOT INVESTING in a house? Take the case for a period of 25 years, out of which another 15 years of service is left.
5. The two of them are getting Rs.5L and Rs.10L as on today, and the 25 year average income would be Rs. 10L and 15L respectively.
6.Remember, both of them will have respective Form 16s each year, hence paying enough tax!
@Murthy
1. They can claim HRA exemption separately but either they should be paying rent for different houses or share rent of a house.
2. Its not advisable to invest whole savings into debt instruments as it won’t give you more than 9-10% interest. Interest on bank FDs, Post office schemes would also be taxable upto 30.6%, thus actual returns can go down to 7%. This won’t be able to beat inflation.
3. Bank interest would be taxable under income from other sources as per normal slab rates. Saving account interest would be non-taxable upto Rs 10,000.
4. There is no loss of opportunity by not investing into house. Its your personal decision to choose a rented accommodation or your own. Buying a house just for home loan benefit or investment does not make much sense. People buy homes because of other reasons as well like tension-free life, no hassles of moving stuff every year on rent agreement renewals etc.
Mr.Batra,
appreciate your time and your generosity in sharing your views.
We are a working couple and have taken a homeloan in my name.She is referred as the Co-applicant in the home loan agreement.Can she also avail tax benefits for home loan in her tax computation ?
thanks,
sreenath
@Sridhar
If she shares loan EMI payment with you and also a co-owner of house, she can claim home loan tax benefits.
Dear Pankaj, thanks a lot for such an information about tax. I am working in a senior college. From this April, college has started deducting some tax from our salary every month. so i want to know if there is any rule for the same also how much tax college can deduct at their end for every month.
@Manoj
Your employer would be deducting TDS from salary payments. Based upon your investment declaration, they compute income tax for year and start deducting around 1/12th portion every month.
Hi Pankaj
Sir is it required to show PPF interest and interest form tax free bonds in the income tax return?If Yes, where to enter this amount in ITR1?
@Akash
If you want to show tax free interest income, you need to file using ITR2 form. Its EI sheet has Exempt Income details section.
@Pankaj
Thanks for the reply.
But sir is it necessary to show such tax free interest income in income tax return?
If Yes , what is the penalty if somebody forgets to mention such tax free income in income tax return?
@Akash
Generally there is no action/penalty on non-disclosure for tax free income. But its a good practice to disclose exempt income in income tax return. It would help in avoiding issues later in case scrutiny happens.
Hi Pankaj,
I have two queries
1. I have seen written above
“deduction for infrastructure bonds not valid anymore. ”
But i have not see this anywhere else, Even my Company is assepting this. Is this True
2. Tuition fees paid for children education
You have written above
“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.
”
I think this is apart from tution fees, becuase tution fees is fully non taxable under 80C..So if i am paying 60000 per annum tution fees. This total amount (60000) i can show under 80C limit of 1 lakh..
@Ashish
1. This year’s budget does not have a mention of infrastructure bond continuity, that’s why it has been considered as discontinued.
2. Children education allowance is a salary component (like conveyance allowance/medical reimbursements) and different from 80C deduction. You can take deduction of tuition fees for children u/s 80C upto 1 lakh limit.