Income Tax Calculator

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Quick Tax Calculator


It is fairly easy to use the quick tax calculator of business.mapsofindia.com. Here is how it can be done:
  • Put in the total income for the year in INR
  • State the gender
  • State if a senior citizen or not
  • Calculate and find out the taxable income

Total Annual Income in (INR):
(enter amount without comma)
Gender Male:
Female:
Are you a senior Citizen
(Age above 65) ?
Yes:
No:


Business.mapsofindia also offers a detailed 4 step tax calculator. Its processes may be mentioned as below:

4 Step Income Tax Calculator




In the Step 1 that deals with general information the following entries have to be made:
  • income from salary head
  • income from short term capital gains
  • income from business and profession
  • income from long term capital gains
  • income from house property
  • income from other sources
In Step 2, which deals with the aggregate yearly income of the taxpayer, the various tax exemptions for which he or she is eligible are dealt with in the following manner:
Section of Indian Income Tax Act Inclusive of Maximum exemption granted
80C PF NSCs PPF 5 year FDs LIC Housing loans National Pension Plan Tuition fees for children ELSS Post office investment INR 1 lakh
80U Normal disabilities INR 50 thousand
80D Health insurance premium for self, children, spouse, and dependent parents INR 40 thousand
80G Deduction for various donations
80DD Normal disabilities INR 50 thousand

In Step 3 which deals with the taxpayer's gender the user needs to click on either "man" or "woman" and also click if he or she is a senior citizen.

Step 4 helps a taxpayer find out the total tax payable with the help of the following information:
  • Taxable income
  • Taxes paid
  • Basic exemption
  • 3% education cess


Income Tax Monthly Sheet 2012-13

Download sheet from the below link and manage your monthly expenses, earning and savings to calculate final taxable income and income tax for the year 2012 - 2012

Download - Income Tax Excel Sheet

How to Calculate Taxes on Your Own

Taxpayers can use the sheet to compute the taxes on their own. Following are some steps with which they can use the sheet:
  • Fill in the amounts for the first category of payments like the Basic and HRA
  • Then fill up the "Other Payments" and "Pre-requisites or Others" sections if you receive such payment. Once filled up the aggregate amount will represent the your overall income
  • Now comes the part of finding out how much can be exempted from taxes. For this you will need to put in the applicable figures for your housing loan interest or loss from residential property. (In case you are eligible for any of the above mentioned tax exemptions granted under Section 80C, 80D, 80U or 80E you can also include the amount to calculate your taxable income.)
  • Now, with regards to determining the applicable income tax amount the basic tax to be imposed on salary needs to be mentioned in the columns. Tax payers can also fill in the other taxes like PRV employer tax and referral claim.

Detailed Explaination of Income Tax Calculation Sheet


As per the income tax form for the 2012-13 fiscal the following factors will be taken into consideration while deciding the gross salary of a taxable employee:
  • Basic
  • Special allowance
  • HRA
  • City compensatory allowance
  • Exemption of HRA under Section 10/13A
  • Referral allowance
  • Transport allowance
  • Arrears of the previous year/s
  • Exemption of transport allowance under Section 10/14

The areas mentioned below are the "other payments" and liable to be subjected to taxes:
  • AIP/SIP/PIP/V.Pay
  • Notice pay recovery or reimbursement
  • Referral claim
  • Tour
  • Taxable reimbursement
  • LTA
  • Leave encashment
The following are regarded as "prerequisites" or "others" in the 2012-13 income tax form:
  • Company leased accommodation
  • Payment for sweeper, watchman, and gardener
  • Less paid by the employee
  • Car perks
  • Medical reimbursement
  • Hard furnishing
  • Interest free loans
Normally the tax on these categories is deducted while calculating the salary.

The following factors are also considered while paying the salaries of taxable employees:
  • Loans from housing property
  • Interest of housing loan

Determining Taxable Income As Per 2012-13 Guidelines


The income tax form for 2012-13 fiscal states that the following investments will be regarded as exempted from taxation as per the Section 80C of the Indian Income Tax Act:
  • Premium of life insurance
  • Mutual funds
  • Unit Linked Insurance Plans
  • Fixed deposit postal deposit schemes with tenures of 5 years each
  • National Savings Certificates
  • Pension plans
  • Public Provident Fund
  • Tuition fees
  • Principal of housing loans
  • Fixed deposits
The employee's contribution to the provident fund is normally deducted from his or her salary. The following deductions are also available to an employee as per the rules of the Indian Income Tax Act:
  • Mediclaim expenses for self as per Section 80D
  • Interest paid for education loans as per Section 80E
  • Mediclaim expenses for parents as per Section 80D

Taxes Deductible As Per 2012-13 Income Tax Form



The following taxes are deducted from an employee's salary according to the 2012-13 tax form:
  • PRV employer tax
  • Leave Encashment
  • AIP/PIP/SIP
  • Notice Pay Reimbursement
  • Referral Claim
  • Tour Advance
  • Taxable Reimbursement
  • LTS
In case of employees living in Delhi, Kolkata, Mumbai, and Chennai the tax exemption provided as per the Section 10/13A will be the minimum of the following categories:
  • Actually received HRA
  • 50 percent of salary
  • The rent paid more than 10 percent of the salary
If the employees are not staying in any of the above mentioned cities then the tax exemption available as per the Section 10/13A will be the minimum of the following categories:
  • Actually received HRA
  • 40 percent of salary
  • The rent paid more than 10 percent of the salary
Leave Encashments in Income Tax

According to the tax form for 2012-13 fiscal the taxable amount of leave encashment is calculated taking into account the following factors:
  • Basic salary
  • Number of days
  • Actual amount
  • The upper limit of exemption in this case, as per the Income Tax Act, is INR 300,000
  • Average salary of 10 months
  • Cash equivalent of leaves at the time of retirement
  • Exemption

Calculation of Gratuity



While calculating the taxable gratuity, the 2012-13 income tax form, makes it clear that the following categories will be considered:
  • Basic salary
  • Number of years in service
  • Actual amount received (salary of 15 days for every year; in case of fragmented service a period of 6 months will be taken into account)
  • The maximum exemption in this case is INR 10 lakhs

Computation of Taxes in Income Tax Calculator



The process of computation of taxes is done by first taking into account the above mentioned payment components such as basic, HRA, and special allowance. Then the "other payments" like referral claim and taxable reimbursements as well as "pre-requisites and others" are taken into account.

The various tax exemptions for which an employee is eligible are also considered in these calculations. While calculating the taxes, the taxes on salary and taxes on others like the provisional taxes are taken into account.

2012-13 Income Tax Slabs



As per the budget for 2012-13 fiscal the exemption limit for individual income tax payers has been increased to INR 2 lakhs. The tax rates for the various slabs have been changed too.

Tax slabs for men: In case of general tax payers earning between INR 2 lakh and 1 rupee and INR 5 lakhs need to pay a tax of 10 percent. For people earning between 500001 and 1000000 the tax rate is 20 percent. In case somebody is earning more than 10 lakh rupees a year he or she will need to pay 30 percent tax.

Tax slabs for women: Women tax payers earning less than or equal to INR 2 lakhs a month will be exempted from taxes. For women who are earning within INR 200001 and INR 500000 the applicable tax rate is 10 percent. In case their earnings for a year are between INR 500001 and INR 1000000 they will have to pay 20% tax on the same. If their yearly income exceeds 10 lakhs the tax rate will go up to 30 percent.

Tax slabs for senior citizens: In order to be considered as a senior citizen a tax payer should be within the 65 to 80 years age group. For them the tax exemption limit is INR 2.5 lakhs a year. If their yearly income is between 250001 and 500000 the applicable tax rate is 10 percent. The tax rate is doubled if their yearly income is within 500001 and 1000000 rupees. If the total income for a year is more than INR 1000000 then a tax rate of 30% is applied.

Tax slabs for very senior citizens: For purposes of taxation, tax payers older than 80 years are classified as very senior citizens. They are exempted from income taxes if their yearly income is lesser than INR 5 lakhs. If their annual earnings are between 500001 and 100000 the applicable tax rate is 20 percent. The tax rate increases by another 10 percent if their income is more than that.

The Union Finance Minister has made several proposals for changes in the rates of income tax slabs:
  • From now on an additional tax exemption of INR 50 thousand will be provided in case of investments in retail equity. However, this facility will only be applicable if yearly income is less than INR 10 lakh. The program has been named Rajiv Gandhi Equity Scheme
  • An additional deduction of INR 5000 for precautionary health check-up will be provided from now on - medical insurance will not be included in this case

Income Tax Slabs for 2011-12



Tax slabs for men: in 2011-12 the tax exemption limit for men was INR 180,000. Between INR 180,001 and INR 500,000 the applicable tax rate was 10 percent and between 500,001 and 800,000 a tax rate of 20% was applied. The tax rate was 30% for any annual income that was more than INR 8 lakhs.

Tax slabs for women: The tax exemption limit for women in 2011-12 was INR 190,000 a year. In case their annual income was anywhere between INR 190,000 and 500,000 a tax rate of 10 percent was applied. A tax rate of 20% was applied in case of yearly earnings between 500,001 and 800,000 rupees. In case the annual income exceeded INR 800,000 a tax rate of 30% was levied.

Tax slabs for senior citizens: For senior citizens the tax exemption limit in 2011-12 fiscal was INR 250,000. In case their annual income was between INR 250,001 and INR 500,000 a tax rate of 10% was levied. For annual incomes between 500,001 and 800,000 rupees the tax rate was 20% and for any amount more than that the rate was 30%.

Tax slabs for very senior citizens: The upper limit of the tax exemption granted to the very senior citizens in 2011-12 was INR 500,000. If their annual income was between 500,001 and 800,000 rupees a tax rate of 20% was levied. In case of an amount exceeding this range a tax rate of 30% was applied.

Income Tax Slabs for 2010-11

Tax slabs for men: in 2010-11 the tax exemption limit for men was INR 160,000. Within INR 160,001 and INR 500,000 a tax rate of 10 percent was applied and for an amount between 500,001 and 800,000 the applicable tax rate was 20%. The tax rate went up to 30% for any annual income that was in excess of INR 8 lakhs.

Tax slabs for women: The upper limit of tax exemption for women in 2010-11 was INR 190,000 a year. If their annual income was in the range of INR 190,000 and 500,000 a tax rate of 10 percent was considered applicable. A tax rate of 20% was used if their yearly earnings were between 500,001 and 800,000 rupees. In case the annual income was more than INR 800,000 a tax rate of 30% was imposed.

Tax slabs for senior citizens: In 2010-11 fiscal tax payers who were 65 years and older were regarded as senior citizens and there was no category for very senior citizens as such. For senior citizens the maximum limit of tax exemption was INR 240,000. If their annual income was anywhere between INR 240,001 and INR 500,000 a tax rate of 10% was levied. For an annual income between 500,001 and 800,000 rupees the tax rate was 20% and for an amount more INR 800,000 a year a rate of 30% was applied.

How to File Tax Returns?



As per rules, salaried tax payers need to submit their income tax files by July 31 in an assessment year if the Income Tax Department of India does not grant an extension.

The tax payers need to get the relevant tax form from the ones mentioned above and then register them along with the relevant documents at the income tax office or a special counter.

These details are normally available at the official website of the Income Tax Department. They are also supposed to provide their PAN numbers when they are filing their tax return.

As per the Electronic Furnishing of Return of Income Scheme 2004 qualified tax payers can register their tax returns through the internet. This process can be executed with certified e-return agents.

The agents normally digitize the data and then transmit them to the Income Tax Department's e-filing server using their digital signatures.

Income Tax Return Forms 2012 - 2013



The income tax return forms can be downloaded from the following address:
http://www.incometaxindia.gov.in/download_all.asp

The ITR-1 tax form can be used by individuals whose aggregate income for the 2012-13 fiscal is inclusive of any of the following:
  • Income from pension or salary
  • Income from additional sources - lottery and horse race income will not be considered
  • Income from one residential property - in case the house owner has suffered losses from previous years he or she will be exempted
The return form cannot be used by people who have assets, including financial interests, outside the country. This form cannot also be used if the tax payer has signing authority outside India.

The ITR-2 form can be availed by Hindu Undivided Families (HUFs) or Individuals who earn in any of the following ways:
  • Income from pension or salary
  • Income from capital gains
  • Income from housing property
  • Income from other sources such as horse races or lottery
This form cannot be used by individual who own businesses.

The tax return file ITR-3 is for HUFs or individuals who are partners in firms and not the sole owners. ITR-4 is for HUFs or individuals who own businesses while ITR-4S is basically an advance income tax return for business purposes.

Last Updated on 31/07/2012



Income Tax Calculator