The Income tax calculator is an easy-to-use online tool that helps you estimate your taxes based on your income after the Union Budget is presented. We have updated our tool in line with the income tax changes proposed in the Union Budget 2019-20
1. Choose the financial year for which you want your taxes to be calculated.
2. Select your age accordingly. Tax liability in India differs based on the age groups.
3. Click on 'Go to Next Step'
4. Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on.
5. Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self occupied property.
6. Click on 'Go to Next Step' again.
7. You will have to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.
8. Click on 'Calculate' to get your tax liability. You will also be able to see a comparison of your pre-budget and post-budget tax liability.
Note: Whichever field is not applicable, you can enter "0".
You can even get your tax computation on your mail.
Income tax calculation for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA, by using this HRA Calculator.
On top of these exemptions, a standard deduction of Rs 40,000 was introduced in budget 2018. This has been increased to Rs 50,000 in budget 2019.
Let's understand income tax calculation by way of an example. Neha receives a Basic Salary of Rs 50,000 per month. HRA of Rs 25,000. Special Allowance of Rs 13,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 20,000 and lives in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable |
|---|---|---|---|
| Basic Salary | 6,00,000 | - | 6,00,000 |
| HRA | 3,00,000 | 1,80,000 | 1,20,000 |
| Special Allowance | 1,56,000 | - | 1,56,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 |
| Standard Deduction | - | 50,000 | - |
| Gross Total Income from Salary | 8,34,000 |
To calculate income tax, include income from all sources. Include:
Neha has income from interest from savings account of Rs 8,400 and a fixed deposit interest income of Rs 10,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim.
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed by Neha |
|---|---|---|---|
| Section 80C | Rs.1,50,000 | PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer(Neha’s contribution) = Rs 50,000 *12% *12 = 72,000 | Rs 1,50,000 |
| Section 80D | Rs 25,000 for self Rs 50,000 for parents | Medical insurance premium Rs 12,000 | Rs 12,000 |
| Section 80TTA | 10,000 | Savings account interest 8,400 | Rs. 8,400 |
Calculation of gross taxable income in India
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | 8,34,000 | |
| Income from Other Sources | 18,400 | |
| Gross Total Income | 8,52,400 | |
| Deductions | ||
| 80C | 1,50,000 | |
| 80D | 12,000 | - |
| 80TTA | 8,400 | 1,70,400 |
| Gross Taxable Income | 6,82,000 |
How to calculate income tax in India for Neha
| Up to Rs 2,50,000 | Exempt from tax | 0 |
| Rs 2,50,000 to Rs 5,00,000 | 5% (5% of Rs 5,00,000 less Rs 2,50,000) | 12,500 |
| Rs 5,00,000 to Rs 10,00,000 | 20% (20% of Rs 6,82,000 less Rs 5,00,000) | 36,400 |
| More than Rs Rs 10,00,000 | 30% (nil) | 0 |
| Cess | 4% of total tax (4% of Rs 12,500 + Rs 36,400) | 1,956 |
| Total Income Tax | Rs 12,500 + Rs 36,400 + 1,956 | Rs 50,856 |
How much tax should I pay on my salary?
You will be required to pay a tax depending on the income slab you belong to.
Income Tax Rates applicable for individuals under 60 years of age| Income Slab | Applicable Tax Rate |
|---|---|
| Up to Rs 2.50 lakh | Nil |
| Above Rs 2.50 lakh and up to Rs 5 lakh | 5% |
| Above Rs 5 lakh and up to Rs 10 lakh | 20% |
| Above Rs 10 lakh | 30% |
Suppose you have a gross taxable income of Rs 7.50 lakh after all the deductions/exemptions, your tax will be calculated as follows:
| Income Slab | Applicable Tax Rate | Applicable Income | Tax (in Rs) |
|---|---|---|---|
| Up to Rs 2.50 lakh | No tax | 0 | 0 |
| Above Rs 2.50 lakh and up to Rs 5 lakh | 5% | Rs 2.50 lakh | 12,500 |
| Above Rs 5 lakh and up to Rs 10 lakh | 20% | Rs 2.50 lakh | 50,000 |
| Total Income Tax Payable | 65,000 |
Hence, you will be required to pay a tax of Rs 65,000 on your gross taxable income i.e. Rs 7.50 lakh.
What is the maximum non-taxable income limit?
The maximum limit of non-taxable income for an individual is set at Rs 2.5 lakh. However, you can also get a rebate of Rs 2,500 under section 87A if you have a total income of less than Rs 3.5 lacs for FY 2018-19. From FY 2019-20 onwards, the rebate has been increased to Rs 12,500 for an income less than Rs 5 lakh. So, that means an individual earning less than 5 lakh will not be required to pay any income tax from FY 2019-20 onwards. If you have tax saving investments under section 80C of up to Rs 1.5 lakh then you will not have to pay any taxes till Rs 6.5 lakhs
Does everyone have to file their income tax returns?
If the income of an individual is below the basic exemption limit then he is not required to file income tax returns. Though those who have income less than Rs 2.5L and want to claim an income tax refund can only claim the refund by filing an ITR. Otherwise, it is mandatory to file income tax returns in any other case. Read more here.
Does the income tax calculator calculate for TDS?
No, the income tax calculator does not compute the Tax Deducted at Source (TDS). However, it calculates your tax liability for the assessment year.
What are the details you need when you're e-filing your income tax returns?
1. Basic information such as PAN, Aadhar Card details, and current address.
2. All the bank account details held in a financial year.
3. Income proofs like current salary details, income from investments (like FDs, savings bank account) etc.
4. All the deductions claimed under Section 80 or Chapter VI-A.
5. Tax payment details such as TDS and advance tax payments.
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