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How to use the tax calculator for FY 2019-20 (AY 2020-21)?

The 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

Following are the steps to use the tax calculator:

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.

How much Income Tax do I need to pay?

How much tax you should pay depends upon the tax slab applicable to your income. Income tax is calculated on the basis of these tax slabs.

Income Tax Rates for taxpayers under 60 years of age in FY 2019-2020 and FY 2018-2019

Income Slab Tax Rate
Up to Rs.2,50,000 No Tax
Rs.2,50,000 - Rs.5,00,000 5%
Rs.5,00,000 - Rs.10,00,000 20%
Rs.10,00,000 and beyond 30%

Income Tax Rates for taxpayers above 60 years but below 80 years of age in FY 2019-2020 and FY 2018-2019

Income Slab Tax Rate
Up to Rs.3,00,000 No Tax
Rs.3,00,000 - Rs.5,00,000 5%
Rs.5,00,000 - Rs.10,00,000 20%
Rs.10,00,000 and beyond 30%

Income Tax Rates for taxpayers above 80 years of age in FY 2019-2020 and FY 2018-2019

Income Slab Tax Rate
Up to Rs.5,00,000 No Tax
Rs.5,00,000 - Rs.10,00,000 20%
Rs.10,00,000 and beyond 30%

Additional tax to be paid on income tax:

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Click here to understand income tax slabs in detail.

How to calculate income tax? (See example)

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:

  • Income from Salary (salary paid by your employer)
  • Income from house property (add any rental income, or include interest paid on home loan)
  • Income from capital gains (income from sale purchase of shares or house)
  • Income from business/profession (income from freelancing or a business or profession)
  • Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)

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