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 2023-24/ 2024-25
| For Everyone | |
| Upto Rs. 3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 6,00,000 | 5 per cent |
| Rs. 6,00,001 to Rs. 9,00,000 | 10 per cent |
| Rs. 9,00,001 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 |
New Tax Regime Scheme (Section 115 BAC)- Income Tax rates for the financial year 2020-21/ 2021-22/ 2022-23
| For Everyone | |
| Upto Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5 per cent |
| Rs. 5,00,001 to Rs. 7,50,000 | 10 per cent |
| Rs. 7,50,001 to Rs. 10,00,000 | 15 per cent |
| Rs. 10,00,001 to Rs. 12,50,000 | 20 per cent |
| Rs. 12,50,001 to Rs. 15,00,000 | 25 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
| 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 2024-25 (AY 2025-26):
Income Tax Calculator for financial year 2024-25 (147.5 KiB, 1,484 hits) - FY 2023-24 (AY 2024-25): Income Tax Calculator for financial year 2023-24 (147.5 KiB, 14,201 hits)
- FY 2022-23 (AY 2023-24): Income Tax Calculator for financial year 2022-23 (148.5 KiB, 13,176 hits)
- FY 2021-22 (AY 2022-23): Income Tax Calculator for financial year 2021-22 (147.5 KiB, 10,221 hits)
- FY 2020-21 (AY 2021-22): Income Tax Calculator for financial year 2020-21 (141.5 KiB, 24,082 hits)
- FY 2019-20 (AY 2020-21): Income Tax Calculator for financial year 2019-20 (125.0 KiB, 57,392 hits)
- FY 2018-19 (AY 2019-20): Income Tax Calculator for financial year 2018-19 (125.0 KiB, 74,351 hits)
- FY 2017-18 (AY 2018-19): Income Tax Calculator for financial year 2017-18 (117.5 KiB, 46,608 hits)
- FY 2016-17 (AY 2017-18): Income Tax Calculator for financial year 2016-17 (136.5 KiB, 40,717 hits)
- FY 2015-16 (AY 2016-17): Income Tax Calculator for financial year 2015-16 (263.0 KiB, 54,651 hits)
- FY 2014-15 (AY 2015-16): Income Tax Calculator for financial year 2014-15 (136.0 KiB, 84,708 hits)
- FY 2013-14 (AY 2014-15): Income Tax Calculator for financial year 2013-14 (130.5 KiB, 59,527 hits)
- FY 2012-13 (AY 2013-14): Income Tax Calculator for financial year 2012-13 (119.0 KiB, 94,476 hits)
- FY 2011-12: Income Tax Calculator for financial year 2011-12 (116.0 KiB, 198,484 hits)
- FY 2010-11: Income Tax Calculator for Financial Year 2010-2011 (97.5 KiB, 162,272 hits)
- FY 2009-10: Income Tax Calculator for Financial Year 2009-2010 (72.0 KiB, 71,029 hits)
- FY 2008-09: Income Tax Calculator for Financial Year 2008-2009 (71.5 KiB, 28,245 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.
Hi Pankai,
I’m staying abroad. I don’t have any income from India. I do own houses and plot in India, but no income from those properties.
In this case, which ITR form do I need to use?
I heard that starting this year, we need to file/report foreign earning (salary etc) as well. Considering this, do I need to file and report it in the same form or we have some other form what i need to use?
Thanks in advance!
@AR
You can fill ITR 2 form.
Hi Pankaj,
Thanks for your response! Few more questions –
1) ITR-2, since I need to report my foreign bank account in there? Can’t I use ITR-1?
2) While filing return, Which esidential status do I need to mention – “Resident” or “Non-Resident”? How will it impact to the tax calculations and income?
3)Do I need to report/include my foreign income (current earning) as well while filing ITR in India?
@AR
1. As you have foreign bank account/income, ITR1 can’t be filled.
2. As you are not living in India, you should fill non resident.
3. Your foreign income won’t be taxable in India, but same needs to be reported.
Thanks Pankaj!
I’ve one more question – my status is an NRI since last 4 years, but I’ve used ITR-1 in last 3 years and filed ITR. All calculations were done correctly in those ITR-1 forms (No other income apart from saving and fixed deposit interest, but have crossed Rs.10,000, which were neatly reported in there)
Should I file a rectification now?
@AR
No, in last years, there was no special case for foreign income returns.
From this year only, it has been categorized separately.
Thanks!
Moreover, During last 4 years, I’ve filed my ITR using ITR-1 form and status as “Resident”. Do I need to file the rectification for my old ITRs because of incorrect status, since my residential status was an NRI?
@AR
Yes, you should get it corrected with non-resident status.
Can you please guide me the process of filing a rectification for correct residential status? Do I need to re-file the ITR for last years? Can I do it online?
Any other pointer what I need to take care of?
Thanks!
AR
@AR
In case previous returns have not been processed, you can file a revised return.
You need to re-file ITR and you won’t be able to able to file rectification request.
Hi Pankaj,
I did check the status and My ITR for last year (AY2014-15) has been received but not processed. Though, I have already sent the signed ITR-V to CPC Banglore.
I’ve following queries –
1) Now if I need to file the rectification, Do I need to file a revised ITR in this case?
2) Do I need to pay any penalty charges since I am re-filing it almost after an year?
3) Can I file this revised ITR online?
4) Which ITR form do I need to use?
5) What if I just don’t file the revised ITR? What will be the consequences? Since I don’t owe anything to Income tax dept in either case, since I did not have any earning from India.
Thanks in advance!
@AR
1. If its just a rectification, no re-filing would be required.
2. There won’t be any penalty.
3. Yes, you can file revised return online.
4. You would use same ITR form, only thing that would change is value for field where it asks whether return is original or revised.
5. In case you have found something incorrect in earlier return, you should revise it to play safe.
Hi Pankaj,
Thanks for your response!
1) I’ve used ITR-1 last year. So during rectification (just for the resident status) for last year, should I use ITR-1 or ITR-2?
2) Also,Can i file a rectification online for last assessment years (un-processed ITRs) ? If so, can you please guide me with the process?
3) If the ITR has been processed by CPC, then how can I file a rectification?
@AR
1. Resident status can’t be changed with rectification request.
2. You need to file a revised return
Hi Pankaj,
Since I don’t have any income other than saving bank account interest (which is not more than Rs.10,000) and I am not in India from last 2 years (so resident my status is NRI), Should I use ITR-1 or ITR-2?
If I need to use ITR-2, then in which schedule should I report my current foreign salary – Schedule FSI or FA?
Hi Pankaj,
I am in abroad and I don’t have any earning from any employment in India. Though, I’ve earned interest from saving bank account. Also, I have few real state properties but no earning from those either.
In this case, which ITR form do I need to use to report my income in India?
As I am in abroad, do I need to report and file my foreign income as well. FYI, I am anyways paying income tax here. Do I need to pay the tax in India as well on my foreign earning?
@ASR
As you are not resident Indian, you don’t need to pay taxes on foreign earnings.
You should file ITR2 and report indian and foreign earnings in it.
What are the eligibility criterion (age of the children etc.) for claiming ‘Tuition fees paid for children education’ under 80C?
@Prateek
As such there is no minimum age criteria.
You can start from Nursery class.
Hi Pankaj,
I need to file my ITR.
1) Which form do I need to use if I’ve just earning from interest on saving bank accounts. I don’t have any other earning in India.
2) My current residential status is NRI being staying abroad from last 4 years. Do I need to include my foreign income (current earning) as well while filing ITR in India?
3) While filing return, Which esidential status do I need to mention – “Resident” or “Non-Resident”? How will it impact to the tax calculations and income?
Hi Pankaj,
I’ve few queries regarding filing ITR this year. Could you please help me out.
My father has given some amount to keep it for some time in my bank account (to return whenever required) as he do not have internet banking, do not know how to do it and staying in different location. i’ve made an FD just not to touch it for my expenses. He took that amount back after 10months. I got an interest and TDS was deducted and showing up in 26A.
1. Do i need to file different ITR (I file ITR1 till date as i do not have any other income except salary). If filing ITR1, how should i show it, as it is showing up as refund.
2. Is it mandatory to fill all my bank accounts while filing ITR? few are dormant few are operational.
Regards
Anna
@Anna
1. This income can be shown in ITR1 itself under income from other sources.
2. Yes, now its mandatory to fill account details in ITR.
Pankaj,
I have one more query… I’ve bought and sold shares once in last year… can i show it under income from other sources.
Regards
Anna
@Anna
No, shares would be shown under income/loss from capital gains only.
dear sir,
i am a tax payer, i plan to invest my money (after the tax deducted) to fd through my father account (i transfered money to my father account,and he ll invest in fixd deposite) my father dont hav any income(he s under my liability)
my doubt is , if the interst earned by fd in my father account exceed rs 10000 limit…do my father have to pay TDS for that or not?
@Ramesh
Your father can submit form 15G/15H into the bank and TDS won’t be deducted.
What is the age or class (in which he/ she is studying) criteria of the child to avail tuition fees exemption?
Dear Sir,
My wife is getting money from her mother and we want to repay our housing loan. Is this money taxable? Me and my wife we both are working
My mother in law getting money from sell of her house
@Bhupesh
There is no tax liability of receiving money from such blood relations. It can be shown as gift.
But there may be long term capital gains tax liability for your mother in law, as she sold her house.
Good Morning Mr. Pankaj,
My Son is working in UK since 4 years. He has to submit ITR from this year. He has only SB A/c. interest which is less than 250K (Basic exemption limit). Kindly advise which ITR Form to be filled use and the SB A/c. Interest earned should be shown or not. He has no other income in India. Thanks and Regards.
@Rao
He should file using ITR2 as he has income outside India. Interest needs to be reported in the return.
TDS will be deducted on the interest earned from NRO account @30.9%. The entire NRO interest is subject to TDS without any exempted threshold.
The interest on NRO is fully taxable at the rates applicable to Residents. But there is no income threshold under which TDS is not chargeable. However, TDS is applicable @30% plus surcharge and education cess and nothing can be done in practice, to avoid it. The only recourse open is to claim refund by filing tax returns. Form 15-G, requesting for non-application of TDS is not available for NRIs.
I am sorry…I wish to include (to be above query) that for my son NO TDS was deducted as he has submitted Form 15G. Now my bankers informed me that he has to close SB A/c. and whenever his FDs mature, the proceeds and interest earned will be credited to NRO Account. (He has NRO Account as well). What are the tax liabilities for NRO account? Kindly clarify in details. Regards
Thanks for the immediate reply as usually.
// However, TDS is applicable @30% plus surcharge and education cess and nothing can be done in practice, to avoid it. The only recourse open is to claim refund by filing tax returns. //
What I understood from the above is that once the bank deduct 30.9% TDS on the interest earned from the NRO Deposits, refund can be claimed for the entire amount deducted (TDS) for NRO Account Holders. Is my understanding right? Pls. clarify. Thanks.
@Rao
Yes, return can be filed for refund of whole TDS amount.
Thank you once again for your help.
I failed to understand, while there should be method for their …ness, why to deduct 30.9% TDS on NRO A/c. Deposits/Interest and refund the same in full. They would have also set a threshold to avoid unnecessary work at all ends. However, many thanks…Regards.
Hello Sir,
In the financial 2014-15, worked in company A till 26-Dec-2014 and joined company B on 29-Dec-2014. There was no deduction of tax from company B.
When I check my form 26A from traces website, no where there are details about company B salaries. Could you please let me know in such income tax dept would know about that?
In case I need to show salaries from both companies, I have below case
1)I paid for LIC policy after joining second company. But didn’t show any proof for that
2)I also didn’t submit HRA receipt for Jan-Mar 2015.
Now would it be possible for me show above deduction and avail benefit. If yes how and whom to approach? I am very much confused about this. Please guide me further. Thanks in advance
@Mukund
As no tax has been deducted by company B, Form 26AS won’t have any entry from company B. But that does not mean that you don’t have to report this income and pay taxes on same.
1. You can include LIC policy amount under section 80C to get deduction in income tax return form.
2. As such, HRA exemption is provided by employer and there is no place for it in ITR form. But as you have not claimed it with employer, now you can reduce this exemption from company B income while showing in ITR.
Good Morning Mr. Pankaj Batra,
My younger son worked during FY 2014-15 (AY 2015-16) in COMPANY ‘A’ from 01.04.2014 to 31.08.14 (5 months) and in COMPANY ‘B’ from 09.09.2014. In COMPANY ‘B’ Form 16 is given and the same is uploaded in Traces (Form 26AS).
His COMPANY ‘A’ was closed during August 2014 and despite several requests and followups during notice period in July and August 2014, no Form 16 is given to him as since Sep. 2014 there was nobody available to handle this issue in the Company ‘A’. Form 16 was also not uploaded in TRACES (Form 26AS).
This was brought to the notice of the COMPANY ‘B’ and they did not include the COMPANY ‘A’ earnings and deductions in the absence of Form 16 from the COMPANY ‘A’.
Now, my son has decided to club the earnings of both the Companies and submit ITR-1 (other than the salary earnings, he has only SB A/c. Interest and Interest on FDs) and pay the taxes accordingly.
Please advise whether this is OK to do this way, especially when the existing TRACES Site (Form 26AS) differ from what he is going to show by clubbing the earnings of both companies.
His total taxable income is less than Rs. 5 lakhs (after all deductions), therefore, he is claiming Rs. 2,000.00 u/s 87A and adding 3% towards Education Cess and Surcharge.
Kindly advise what we are doing is right and suggest if anything is wrong.
Thanks and Best Regards
@Rao
Traces would only show record if any TDS has been deducted by employer.
Yes, its fine to club income, compute tax yourself and pay whatever is remaining tax payable.
Thank you very much for your assistance.
Regards
I suppose file my ITR I am a govt employee which form I should use
@LSBaghel
You can file using ITR1
Hi Pankaj, one query regarding 2015_ITR1_PR2, under Taxes Paid and Verification, Sl. no. 27, Other Bank account details- whether one should mention the bank details where he/ she is 2nd or 3rd joint account holder?
@Prateek
Yes, it should be mentioned.
Sir,
My Employer does not provide any non taxable components apart from Medical allowance (Rs 15000) and Conveyance allowance (Rs 9600). So I am paying alot of income tax. He has also provided with Form 16 and same income is matching with Form 26AS.
I want to check with you: Is it possible that I can decrease my taxable income in Income tax returns assuming Uniform allowance, Fuel and Reimbursement allowance, Sodexho Coupons, Mobile Reimbursement etc.
Can it lead to any problem later as I will report less income in Income tax returns and higher amount is shown on Form 26AS by employer.
@Amit
No, all these allowances are reimbursement based and has to be done with employer only.
In Income tax return form, there is no option to claim tax benefit for these allowances.
If you reduce taxable income, IT department may send notice and ask for explanation.
Sir,
Alright, I got your point. Thank you for your reply.
I have one more query: I have changed job in April 2014. In full and final settlement my previous employer has shown Rs 90000 as the leave encashment income and deducted Rs 86000 as the notice pay amount(I worked for only 1 month after resignation, so have to pay 2 months notice pay amount as 3 months in the notice period). But now my previous employer has included this Rs 90000 in Form 16 and Form 26AS as income and I am stuck as to give income tax on complete Rs 90000 or the balance Rs 4000(as I have already given back Rs 86000).
Please note that my previous employer has not deducted any tax.
Also can you send me the link for any coloumn you have written before on my first query.
Thanks
@Amit
Paying for not serving notice period is an expense and it can’t be deducted from Income to compute taxable income.
Also, leave encashment is non taxable upto Rs 3 lakhs on leaving a job, so you can claim tax benefit for it.
Thanks Sir. This is of great help.
You said I can claim the tax benefit for leave encashment.
In which section I need to show this leave encashment deduction? or should I just subtract this leave encashment (Rs 90K) from previous employer form 16 income amount and report?
@Amit
You can subtract leave encashment from taxable income and file return.
Hi sir,
I am salary person. From last year invest amount in Equity market and gain 10000 Rs profit in short tem. Pl tells me which ITR form is usable for me and where to report this income. And other terms?
Thanks
@Ganesh
You should file ITR2 and report this gain.
Good Morning. I have one flat and I am living in that flat with my wife and unmarried son who is an employee in an IT firm. He is paying rent to me every month and claiming HRA. I am going to claim 30% maint. deduction for this in my IT Return. Secondly, I also have another flat which is let out. I also intend to claim 30% deduction towards maint. My questions are:
1. Am I eligible to claim 30% deduction towards maintenace for both flats?
2. Am I eligible to claim Municipal taxes paid for both the flats? or
3. I am only eligible to claim Municipal taxes paid for the 2nd flat only as I am also living in the first flat.
Kindly clarify. Thanks for all the help. Regards.
@Rao
1. Yes
2. No
3. Yes
Dear Pankaj,
My Employer issue us FY 2014-15 form 16 on 27 August and I found few below problem/mistakes
1. Part A and Part B tax amount not matching
2. In Part B 80 D sessions eligible deduction is 40000, as per its wrong because my and spouse age not more than 31 year and parents age also less than 56 years old, it should be only eligible under 80D Rs. 30000
3. In part B – 80 C Sessions – PPF eligible deduction is 11540, as per it also wrong because I only deposited Rs. 540 in PPF account.
When I ask to my Company head and account manager for provide correct form 16 Part B, they say they only can correct tax matching in Part A and part B and it also take minimum 15 working days’ time. And Part B 80D and 80C amount should not be correct.
Please advise that what should I do ?
Thanks with Regards,
AG
@Ankush
You can file returns based on your calculations. Correct form 16 may come later.
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