| Income Tax Calculator |
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| Version 9.0 |
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| © 1997-2006, Nithyanand Yeswanth |
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| Available for free download at: http://www.ynithya.com/taxcalc/ |
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| email: taxcalc@ynithya.com |
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PLEASE ENTER YOUR NAME HERE |
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| D I S C L A I M E R |
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| This tax calculator can be used to calculate the approximate tax payable by salaried individuals. This should NOT be used to compute the actual taxes to be paid to the Government. The author is not resposible for any inaccuracies in the tax computed by this calculator. If you find any inconsistency, please let me know and I will try to fix it at the earliest |
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| P L E A S E R E A D T H E S E I N S T R U C T I O N S C A R E F U L L Y |
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This sheet can be used to compute the tax for salaried individuals only |
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Enter the numbers only in the yellow-colored cells. You will not be able to enter data in other cells |
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Do not leave any yellow cell (that expects numbers) blank. This may lead to incorrect calculation. Instead, enter 0 |
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The darker yellow colored cells (with green text) constitute the setup parameters, which you may have to set only once. Ensure that all setup parameters in cells B4 to L4 and V24 to V44 are setup prior to using the calculator |
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Depending on your company policy, change cells B4 to L4 to select elements of your salary that count towards calculation of PF |
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If you are in Delhi, Mumbai, Kolkata or Chennai, change the location to Metro in Cell V24 |
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Enter the PF deduction percentage in cell V27 depending on your company policy. In addition, if your company limits the PF to a certain amount, enter that amount in cell V28. If there is no PF deduction, enter 0% in cell V27 |
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If you have opted for VPF (Voluntary Provident Fund), change cell V31 depending on whether the deduction is done as a percentage of salary or as a fixed amount. If it is done as a percentage, enter the percentage in cell V29. This will apply the same percentage throughout the year. If the percentage changes month to month, enter the percentage for each month in cells AC5 to AC16 (If you leave any of these cells at 0, the default percentage from cell V29 will be taken for that month). If the deduction is a fixed amount, enter the amount for each month in cells AC5 to AC16 |
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If the interest rate on PF is other than 8.5%, change the value in cell V30 |
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If you are claiming exemption on housing loan interest, remember to update cells V33 and V34 (see below for the rules) |
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If you are claiming exemption for medical insurance that includes premium for a dependent over 65 years, change cell V36 |
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If you are claiming exemption for medical treatment for specific diseases for a dependent over 65 years, change cell V37 |
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If you have a permanent physical disability, change cell V38 |
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If you are above 65 years of age, change cell V39. You will get additional exemption |
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If you are a woman, remember to change cell V40. You will get additional exemption |
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If you live in company-provided house, change cell V41 and V42; 20% of salary will be added as perks for cities with more than 4 lacs population and 7.5% for other cities. If rent has been paid (cells S5 to S20), the same will be deducted from this perks amount |
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If you are using company-provided car for office and personal user, change cell V43 and V44 and cells AE5 to AE16; Rs.1,200/- per month will be added as perks if the car engine capacity is less than 1600cc and Rs.1,600/- per month if the engine capacity is more than 1600cc. In addition, if the company provides a driver, update cells AF5 to AF16. Driver perks will be Rs.600/- per month |
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If you are claiming vehicle maintenance exemption update cells AE5 to AE16 to reflect the months in which you had the car |
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If you are claiming vehicle maintenance exemption and if you include driver's salary in the exemption, change cells AF5 to AF16 |
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If you have been out of India during the year, update cells AG5 to AG16 so that conveyance exemption is computed correctly |
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If you have taken any company loans at interest rates lower than that prescribed by the Government, please enter the details in the sheet "Perquisites" |
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You can enter the opening balance in your PF account as at the beginning of the year in cell AA5 and PF loans/withdrawals in cells Z5 to Z16 to calculate the closing balance (including employer's contribution) in your account at the end of the year |
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Update the earnings (cells B5 to L16) with expected earnings during the year. On the deductions side, enter the expected rent payment, Profession Tax and Life Insurance Salary deduction details for all months. As and when salary is received, update all the earnings and deductions for that month |
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Enter expected bonus in Cell M19, if bonus for the year has not been paid yet. If paid, enter the actual amount |
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Enter any other earnings related to salary in cell M20 |
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If tax has been deducted outside salary (such as TDS for bank deposit, etc.), enter the amount so deducted in cell E48 |
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Enter the remaining months in current financial year in Cell E51, to figure out the tax per month |
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You can change the headings for the 4 "Misc" earnings and the 3 "Oth Ded" deductions columns to suit your salary structure |
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Rent can be entered in cells S5 to S16, if deducted through salary; Otherwise enter annual figure in S18 to S20. If you enter rent amount in any cell between S5 to S16 do not enter any amount in cells S18 to S20 and vice-versa |
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Enter expected investments/savings/expenses information in cells L26 to L54 |
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Other exemptions entered in cell L26 is not checked. So, please be sure about the amount entered |
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Enter non-salary related other income (such as from interest) in cell L35 |
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You can enter the details of NSC's purchased during the last 5 years in the "NSC Accrued Interest" sheet to calculate the accrued interest automatically. This interest is exempt under sec 80C |
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| T A X R U L E S & O T H E R U S E F U L I N F O R M A T I O N |
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HRA exemption = minimum of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA) |
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Transport allowance is exempt upto Rs.800/- per month provided the person is in India during the month. For people having permanent physical disability, the exemption is Rs.1,600/- per month |
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Vehicle maintenance exemption can be claimed if you use a car for travel to the workplace. In such case, exemption can be claimed for the petrol and vehicle maintenance amounts. The exemption is available to the tune of Rs.1,200/- per month if the engine capacity is less than 1600cc and Rs.1,600/- per month if the engine capacity is more than 1600cc. In case the amount includes driver's salary, there is an additional exemption of Rs.600/- per month. When this exemption is claimed, transport allowance exemption is not available. |
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Medical bills are exempt for self and dependent family, upto Rs.15,000/- per annum |
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LTA is exempt to the tune of ecomony class airfare for the family to any destination in India, by the shortest route.
LTA can be claimed twice in a block of 4 calendar years. The current block is from 2002 to 2005 |
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Gratuity, VRS and some such amounts are exempt upto certain limits. If you get any such payment, please find out the exact limit for you from a tax consultant and enter in cell L26 |
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Children's Education allowance is exempt upto Rs.100/- per child per month plus Rs.300/- per child per month for hostel expenses (max of 2 children only) |
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There is an exemption for interest on housing loan. If the loan was taken before Apr 1, 1999 exemption is limited to Rs.30,000/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs.1,50,000/- per year if the house is self-occupied; there is no limit if the house is rented out
This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you've paid it or not |
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If you have rented out your house, enter the total income/loss from the house (after deducting property tax and standard maintenance expenses) in cell L33 |
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Medical Insurance (such as Mediclaim) premium is exempt upto Rs.10,000/- per year. If the premium includes that for a dependent who is above 65 years of age, an extra Rs.5000/- can be claimed |
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Deduction in respect of medical treatment of handicapped dependents is limited to Rs.50,000/- per year if the disability is less than 80% and Rs.75,000/- per year if the disability is more than 80% |
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Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed upto Rs.40,000/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs.60,000/- |
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Interest repayment on education loan (taken for higher education from a university of self only) is completely tax exempt |
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Donations given for certain charities are tax exempt. Some are exempt to the tune of 50%, whereas others are 100%. Please enter the actual amount exempt, in cell L41 |
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If you do not get HRA, but have rented a house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid - 10% of total income or Rs.24,000/- per year) |
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Donations for certain scientific research and rural development are exempt. Please enter the actual amount exempt in cell L44 |
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Interest earned from all sources is to be included in cell L35. All interest income is fully taxable |
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If you have a permanent physical disability (including blindness), you can take an exemption of Rs.50,000/- per year |
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Investments up to 1 lac in PF, VFP, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, etc. are deductible from the taxable income under sec 80C (there is no limit on individual items, so all 1 lac can be invested in NSC, for example) |
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Surcharge on Income tax is applied at 10% of the tax amount, if the taxable income is more than Rs.10,00,000/- |
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Education cess is calculated at 2% on total tax payable |
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For the current year, Govt. prescribed rate of interest for PF is 9.5%. If the employer pays interest higher than this, the differential interest earned is treated as perquisites |
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| H O W T O G E T A N U P D A T E / C O N T A C T M E |
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This tax calculator constantly gets updated to fix errors found as well as to add new features |
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This may also be changed when there are changes in tax rules that affect income tax computation |
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The latest version of this tool will be available for free download from the Internet at http://taxcalc.ynithya.com/ |
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Please check back frequently (at least once every 2 months) to see that you have the latest version. You can compare the version number at the top of this instructions page. However, if you have subscribed, you will automatically receive updates |
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You can also send a blank e-mail to taxcalc@ynithya.com with only the subject line as "SEND TAXCALC" and you will automatically receive the current version of tax calculator within a day or two |
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If you want me to send you an updated version automatically, whenever I update, please send a blank e-mail to taxcalc@ynithya.com with only the subject as "SUBSCRIBE" |
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If you find any inaccuracy in the calculation or want clarification on some aspect of the tax calculator, please send an e-mail to taxcalc@ynithya.com with subject as "CLARIFICATION" and I will try to reply within a week |
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If you are already on my list and no longer want to get updates, send a blank e-mail to taxcalc@ynithya.com with only the subject as "UNSUBSCRIBE" |
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While sending e-mail, please ensure that the subject line is exactly as given here (without the quotes), because the processing is done automatically |
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Since I am not a chartered accountant or a tax consultant, I am not in a position to answer specfic queries related to taxation. You will have to contact a tax consultant for your specific queries |
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| Click here to go to the tax calculation sheet |
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| R E V I S I O N H I S T O R Y |
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| Version 9.0; Release date: May 01, 2005 |
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Updated for financial year 2005-06, corrections and enhancements incorporated |
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| Version 8.2; Release date: January 14, 2005 |
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Fixed some errors in calculation of HRA exemption, surcharge, section 88D rebate, etc. |
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| Version 8.1; Release date: September 18, 2004 |
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Updated to include the budget revisions |
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| Version 8.0; Release date: May 10, 2004 |
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Updated for financial year 2004-05, corrections and enhancements incorporated |
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| Version 7.1; Release date: May 08, 2003 |
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Updated to correct mistakes in: perquisites calculation, children's education rebate under section 88 and inclusion of interest income in gross income |
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| Version 7.0; Release date: April 18, 2003 |
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Updated to include the new budget proposals for financial year 2003-04 |
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| Version 6.5; Release date: March 03, 2003 |
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Corrections: Housing loan interest and House/property income/loss was not being accounted correctly. Next year's (Financial year 2003-04) version 7.0 should be out sometime in late April or early May 2003 |
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| Version 6.4; Release date: February 25, 2003 |
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Corrections: Std. deduction calculation, housing interest accounting, LIC SSS accounting, Perks calculation (different interest rates for the 2 loans) |
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| Version 6.3; Release date: January 09, 2003 |
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Corrections: Problem in tax rebate calculation when the salary is between 1 lac and 2 lacs; Housing loan interest calculation |
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| Version 6.2; Release date: January 07, 2003 |
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Updated to fix some errors in calculation of Std. deduction, Tax rebate, Vehicle maintenance exemption, Perquisites, etc. |
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| Version 6.1; Release date: May 15, 2002 |
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Updated to include the changes as passed in the finance bill; Fixed some minor defects |
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| Version 6.0; Release date: April 10, 2002 |
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Updated to include the new budget proposals for financial year 2002-03 |
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