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, 2,893 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, 75,040 hits)
- FY 2017-18 (AY 2018-19):
Income Tax Calculator for financial year 2017-18 (117.5 KiB, 47,199 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, 55,296 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, 95,056 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, 162,703 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.
I am a Student from mechanical engineering. Soon i will get a paid job. I have gone through the excel file. And read many of your post but i do not understand many terms. So i want to know the meanings of each and every term in your excel file. Where can i find a simple explanation for all those words mentioned? Can you suggest some ebook or personally help me to learn the same?
Thank you.
Regards
@Jigar
Most of the section/allowances are explained on this page: http://www.pankajbatra.com/finance/income-tax-calculator-2012-2013-2014/
Still if you have confusion, you can ask question on SocialFinance.in website and somebody would answer those.
Hi pankaj,
i have your excel file and calculated tax accordingly. if i see my form 16 and calculating according to that i am able to see a huge difference in tax payable/paid.
one more question in my form 16 and form 26As their is different gross income so what should i consider for ITR filling.
thanks
Sunil
@Sunil
Please check if all deductions/exemptions are computed correctly in form-16.
You should consider figures in form-16 for gross income and not what’s there in form 26AS.
Namaste Sir,
On 07.06.13 I sold a commercial property for 32 lakhs and the CG on this sale is Rs. 15 lakhs @ 20% CG Tax = Rs. 3 lakhs. I am aware that, the only opportunity to save CG Tax is to invest in REC or NHAI Bonds for 6% p.a. taxable interest. My Bank is offering 8.75% p.a. for 3 years deposit. As I survive on bank interest, I want you to think from the simple interest angle only (as I will be taking quarterly/half yearly interest on the fixed deposit for all the 3 years from the Bank or I will be opting for yearly interest payment even if I deposit the CG with REC or NHAI).
My annual income is just below 2 lakhs, therefore I fall in 10% bracket only, even if it exceeds a little over 2 lakhs.
The CG saving is Rs. 160K for 8 lkhs and this Rs. 160K can also fetch interest for all the 3 years. As I can afford to block 8 lkhs for 3 years, is it advisable to save 160K CG Tax, especially when the simple interest difference between NHAI interest rate (6%) and Bank FD Interest rate (8.75%) is only 2.75% p.a.?
My understanding is that I save 160K towards CG Tax, whereas I receive only Rs. 66,000 for all the 3 years towards extra interest on 8 lakhs, if I pay the CG Tax on these 8 lakhs (8 lakhs for 3 years @ 2.75% p.a. = Rs. 66,000). I have no intention to invest these 8 lakhs in any other manner as I am more concerned about the safety of my capital.
Is it beneficial if I go for REC or NHAI Bonds? Do you recommend this? Kindly help me, if I am unable to see any blind spots.
Thanks for all the help. Regards
@Rao
I did some basic calculations.
If you pay income tax on capital gains, you would be left with Rs 28.91L, this would become Rs 37.18L with 8.75% interest in FD.
If you decide to invest the amount into capital gain bonds, you will have to put whole sale amount to save tax fully. In that case, 6% interest on 32L would make it 38.11 after three years. So there would be a loss of around 93K if you decide to pay tax and not deposit into capital gain bonds.
If you choose to invest only 8 lakhs in CG bonds, You still have to pay 2.25 lakh income tax, as per below calculation:
Non-exempted capital gains = 1500000 *(1-800000/3200000) = 1125000
Income tax on non-exempted capital gains = 1125000 x 20% = 225000
So, you will have to balance these in such a manner you have safety amount as well as you pay minimum income tax.
You will have to pay advance tax for capital gains. 30% should be paid by Sept, 60% by Dec and rest by March.
Sorry, let me add this also:
If I have to pay CG on 7 lakhs which is Rs. 140K, when do I have to pay this. Any advance tax is to be paid, if so what are the dates and percentage installments. Kindly answer this point also. Thanks and Regards
Sir, thanks for the very quick response. I am sorry I totally fail to understand your calculation. My understanding is that the CG of this sale is 15L after indexation. It is my belief that CG Tax + Cess is to be paid only on 15L and the other 17L is cost of property after indexation on which I need not pay any taxes.
I am under opinion that I have to pay 20.6% on 15L which is Rs. 309,000 or deposit 8L in CG Bonds and pay taxes for remaining 7L which is Rs. 144,200 at 20% on 7 lakhs. Am I permitted to deposit 8L in NHAI and pay 20.6% on the balance CG of 7L?
I did not get your formula of:
“Non-Exempted CG = 1500000 *(1-800000/3200000) = 1125000
Income tax on non-exempted capital gains = 1125000 x 20% = 225000.
I was under impression that I have to pay 20.6% only n 7L. Pls help. Thanks and Regards
@Rao
You are right, you need to pay 20% income tax + cess on capital gains part only.
But when you invest into capital gains bonds u/s 54EC or buy a residential house property u/s 54F, to save tax fully, you need to invest full sale consideration and not only just capital gains. If less amount is invested, exemption would be provided proportionally.
Your taxable capital gain would be reduced by fraction of ratio in which amount has been invested out of sale consideration.
If you invest fully, non-exempted CG = 15L x (1-(32L/32L)=0, so no tax is payable.
If 8L is invested, non-exempted CG = 15L x (1-(8/32)) = 15L x 0.75 = 11.25L
Sir, thank you very much for the great help. Will you be kind enough to advise which form is to be used for paying Advance Tax on Long Term Capital Gains either through internet or at SBI in person. A little guidance to tick the appropriate columns in the respective form is appreciated. Thanks for all the help.
@Rao
Goto this page: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp
Select CHALLAN NO. ITNS 280. On next page, Select (0021)INCOME-TAX (OTHER THAN COMPANIES) in tax applicable.
Select Type Of Payment as (100) ADVANCE TAX
Thank you very much for the help. Regards
SIR WHAT IS THE TAX TAX CREDIT U/S 87A
@Deepak
Section 87A gives income tax Rebate/Credit of Rs 2000 for individual whose income is less than Rs 5 lac.
Hi Pankaj,
Good job.. can u tell me if someone is having only income from interest in bank savings, like RD acc. Or FD acc.
And interest is more than 10k.
1. Does he need to file ITR.
2. Say interest is 30k. And TDS has been deducted, will he be considered for tax free bracket, and can he claim IT Returns on this.
3. Which form to file. And under which section he need fo mention ineteret earned.
4. Will bank also issue form16 for TDS ?
@Kumar
1. In case total income is more than taxable income slab (2 lakh), then only filing income tax return is mandatory.
2. In case TDS has been deducted, he should file income tax return to get refund. If he does not want TDS to be deducted by bank, he can submit form 15G.
3. ITR1 can be filed if income is only from bank interest. This income should be declared under income from other sources.
4. Whoever deducts tax as form of TDS, has to issue form 16/16A mandatorily, so bank would also issue same.
Hi Pankaj,
Thanks for quick info..
Sir I have a flat and want to gift it to my daughter in law .who is presently NRI.Can I gift the flat to her and if so shall i have to pay gift tax or on a plain paper it will do.
Or can I gift it to my grandson who is 12 and make her the guadian for managing rent /maintenance etc
@Raj Kumar
You will have to do a registered gift deed to transfer flat to your daughter in law or grandson’s name.
There won’t be any gift tax payable by you and your daughter in law in this case.
However, stamp duty would be payable for this gift deed. This varies from state to state, for example, in Haryana, its 5% value on current circle rate.
Sir
I have a 2 storey house which is registered on my name.I have gifted its first floor on a paper to my son whi is staying with his family and managing ang maintaining under his arrangements.Now he is shifting to Delhi and will be staying in rented house there.He wants to give the first floor on rent so that it adds to his income.kindly clarify if the rent received on first floor will be his liability for income tax or i will have to take it in my income SNEH RAJ KUMAR
@Sneh
In case part of property has been transferred through registered deed (e.g. gift deed after paying stamp duty), rental income would have to be paid to your son and he would be liable for income tax on such income.
Hi Pankaj,
I want to know one thing. I have taken car loan of Rs.5 lakh. Am a salaried person.
I just want to know, that is there any provision to adjust this loan EMI in CTC ?
If yes, then how?
Thanks.
@Jeetendra
There is no tax benefit available on car loans EMI.
So even if your get this EMI deducted from your salary, tax would be deducted on it as salary income.
Sir,
I have never understood tax on fixed deposits properly.
My question is above Rs 10000 interest on FD the banks will charge 10 % tds and in case of no PAN num provided they will charges 20% TDS , so to avoid tds we have to ensure our interest is not more than Rs 10000 in different bank.So if i get Rs,10000 as interest on FD from three Different banks , the banks will not deduct tds and i am only eligible to show Rs 30000 recd from interest on fd as income from other sources.Is my understanding correct sir ?
Also in case i get Rs 15000 as fd interest from three different banks and i have no source of income other than interest on SB and fd, i need to submit form 15G to the banks stating my total income in less than 2 lacs limit – is my understanding correct sir? Please help and reply thanks.
@Thinker
Non deduction of TDS does not make one free from paying tax on such income.
Even the interest is less than 10,000 same has to be shown in income tax return under income from other sources and tax would be computed on such income as per tax slab rates.
In case form 15G is submitted, bank would not deduct any TDS on interest even if amount is more than 10,000. Still in that case, same amount has to be shown in income tax return. If total income would be less than 2 lakhs, no tax would be payable.
Thank you very much for your reply Sir !!
Hi Pankaj,
I am at 36, Can I take Lic Magic Plan – Retire & Enjoy policy, do we have any other best policy? I heard that these policy is going to be changed after from October onwards as to follow IRDA norms. Can you please let me.
Thanks,
Rambabu
@Ram
There is no such policy issued by LIC.
Agents mix multiple policies and give them a name by themselves. Ask agent to show LIC official brochure/plan document for this policy.
You can check on LIC website, there is no such plan available.
Hello Pankaj,
I have always been confused – whether one can completely avoid paying income tax by doing investment. The calculation sheet that you shared is really confusing for a person like me. Is it possible for you to help me know how to understand and intepret the IT calculation sheet. Will be really helpful as I pay nearly 12000 pa in tax.
@Maggie
One can save tax upto a certain limit only. Most of the people who are in tax slab of 10% rate, can save save completely by doing investments.
You can read all details about IT calculator and its various components here: http://www.pankajbatra.com/finance/income-tax-calculator-2012-2013-2014/
Hi Pankaj,
I am paying tax for the first time. My Gross salary is INR 36000/-per month.
and take home is INR 34720/- per month. I wanna know how much amount should i do investment to save tax. i pay 9000 as my rent and my HRA is 9000.
please advice.
@Shubhi
You can download income tax calculator excel provided on the page and use same for computing tax liability.
This also has option to specify tax saving investments, so you can see by investing how much, tax can be minimized.
sir,
i have following components in my salary structure…can plz tel me what are the components is to be accounted for income tax calculation
basic+da, hra, conveyance, spacial allowence, pf emplyer contribution, pf employee contribution, lta, leave encasement, gratuitiy, bonus
thanks in advance,
@Ramesh
You can put all these components in excel based income tax calculator (which can be downloaded from http://www.pankajbatra.com/finance/income-tax-calculator-2013-14-budget-updates/) and it would compute income tax.
Basic+DA, special allowance and bonus would be fully taxable.
PF employer contribution won’t be added to taxable income. PF employee contribution would be non-taxable under 80C subject to 1 lakh total limit.
HRA, Conveyance, LTA, Leave encashment and Gratuity can be non-taxable under different conditions which you can read on this page: http://www.pankajbatra.com/finance/income-tax-calculator-2012-2013-2014/
Hi Pankaj,
I am using tax calculator financial year 2013-2014.How to get the details of “Home loan interest exemption u/s 80EE” when i entered home loan amount. what are the fields i should enter to get the value of “Home loan interest exemption u/s 80EE “. Kindly guide me. Since i am new to the tax calculation i am not much aware of the about the “home loan interest exemption”.please help me….
@Umapathi
You need to fill information in row 70 (Self occup. Home Loan Interest Component)
Also 80EE would be applicable if Home loan is taken in 2013-14 and its your first home loan.
where will we add the employed contribution and employer contribution to know how much i have to pay the tax. if suppose my total gross salary 571630 and after all deduction it will come around appx.5,24300. where both self employed (44530) and employer contribution(44530) is app 89060. when i m putting these value in excel sheet provided by Income TAx department, self employed comes in 80C but what about employer contribution, where i will add this employer contribution. i need some information regarding this subject………
@Sachin
Please download latest income tax calculator file from this page: http://www.pankajbatra.com/finance/income-tax-calculator-2013-14-budget-updates/
You should use row 124 and 134 in excel for entering employee and employer contribution respectively.
thank u for kind support
Thank you for the Work you have shared!!
Hi Pankaj,
I am working as a freelancer and get the monthly salary in random basis (varies from 15000-25000). The Employer pay me the monthly salary after deducting the tax. So I have 2 questions:
1) In the 2013-2014 income tax calculator provided by you (http://www.pankajbatra.com/finance/income-tax-calculator-2013-14-budget-updates/), in which section of “Salary Breakup” column should I fill my monthly income so that I can calculate my income tax for the financial year 2013-2014?
2) Please provide me the excel sheet download link of “Income Tax Return calculator 2013-2014” so that I can calculate how much money I will get back as Income tax return in 2014?
@Smita
You need to put monthly income figures in basic salary row in excel income tax calculator and it would compute total tax.
Also, you need to fill TDS row for tax deducted by employer, and whatever is remaining amount (paid extra) would be shown in negative. That would be tax refund you would be eligible for.