Income Tax Calculator
Every year there are changes in the Income Tax rules of India in the Union Budget. Keeping these changes in mind we come up with our Income Tax Calculator India every year. The latest budget was presented in February 2021 and made the following changes.
There was No major changes in income tax in Budget 2021. The only change was the interest earned on contribution of more than Rs 2.5 Lakh in a year through EPF or VPF would be added to the income and taxed at marginal tax rate.
Also the biggest change in Budget 2020 regarding income tax was introduction of new tax slabs in case you do not want to take benefit of various tax deductions like standard deduction, Chapter VI A deductions, HRA benefit, LTA, home loan interest for self-occupied homes etc. continues.
From last year you have the option to choose on what you want to follow:
Are you worried that you are paying too much in income tax? Are you aware of all the changes in the tax laws? Where should you invest to save taxes? Do you know all tax sections that you can use to save your tax. Download a concise 43 page presentation free to answer all the above questions and save your taxes – legally.
The income tax calculator India calculates the tax outgo using both the above tax slabs and you can choose what suits you.
Sukanya Samriddhi Account, PPF, Senior Citizens’ Savings Scheme are part of small saving scheme sponsored by Government of India. These schemes are quite popular and rightly so because of the safety, higher interest rate offered among other things. We have built calculator for each of them where you can check the maturity amount, loan eligibility, partial withdrawal and more. Click on the links to get the relevant calculator – PPF Calculator, Sukanya Samriddhi Yojana Calculator, Senior Citizens’ Savings Scheme Calculator, NSC Calculator.
You can download the income tax calculator 2021 (for FY 2021-22) in excel by clicking the button below.
The picture below shows how the income tax calculator India for FY 2021-22 (AY 2022-23) looks like. You can edit all cells in Orange colour.
The top cells ask for your name and PAN Number. It’s optional field and is meant in case you want to use it for multiple people.
Date of Birth is mandatory field as the tax slab is different for people aged below 60, between 60 to 80 years and more than 80 years.
The next fields ask information about gross salary income.
There are components in salary which are fully or partially tax exempt. For example HRA is tax exempt if you satisfy certain conditions. You can have the complete list in the post: Must have Tax Free components in Salary.
Input all the other income like Interest income from fixed or recurring deposits. You can also include income from gifts received if its more than Rs 50,000 and from non-relatives.
In case you have home loan, fill up the columns to reflect the same. You get tax benefit on interest under section 24. Budget 2018 onwards there is additional benefit for first time buyers of affordable homes. You can also claim tax benefit on interest paid on home improvement loan.
Many employer (& employers) are confused if they can take advantage of both HRA and Home Loan for saving tax. This seems intuitive as how can you pay for home loan and also live on rent. However just for your information its completely legal to take advantage of both HRA & Home Loan as there are multiple situations where you need to live on rent but still pay home loan. You can read more about this our post – Can I claim Tax Benefit on both HRA & Home Loan?
Fill in the tax deductions you want to claim. It covers Section 80C for investments like EPF, VPF, PPF, SCSS, etc.
Additionally, you can claim tax deduction up to Rs 50,000 by investing in NPS u/s 80CCD(1B). this is in addition to Section 80C.
Section 80C offers more than 10 investments where you can invest to save tax, However many a times you need not actually do this investment as its already covered due to expenses like children tuition fee or automatic EPF deduction for salaried. In case you are new to taxes and investment do read our helpful guide on How to take maximum advantage of Section 80C and choose the best investment to save tax.
There are several cases where you can claim tax deductions like buying medical insurance, etc. Mention the same accordingly.
This section is auto-computed based on your inputs and displays your final tax outgo. There
This section computes the Income Tax with Lower Tax Slab under new Regime announced in Budget 2020. This would help you to determine which tax regime suits you.
In case you want to calculate your income tax without using the Income Tax India calculator, it’s not very difficult. You need to follow following steps using the below example.
Amit is salaried employee with following salary structure.
Everyone hates Taxes and go out in full force to save it – sometime legally and sometimes beyond the law. Fortunately there are still some tax Free incomes & investments. Learn about them here and use it to your advantage.
The table below shows the calculation for gross taxable income from salary.
Component | Amount (Rs.) | Exemption/ Deduction | Old regime | New regime |
---|---|---|---|---|
Basic Salary | 600,000 | – | 600,000 | 600,000 |
HRA | 300,000 | 240,000 | 60,000 | 300,000 |
Special Allowance | 60,000 | – | 60,000 | 60,000 |
LTA | 40,000 | 40,000 (bills submitted) | 0 | 40,000 |
Standard Deduction | – | 50,000 | – 50,000 | |
Gross Total Income from Salary | – | – | 670,000 | 1,000,000 |
Amit had made the following investments to save tax. These will be deducted from the gross income to arrive at net taxable income.
Amit also had Rs 20,000 from interest from fixed deposits with banks.
The table below shows the Net Taxable Income for Amit
Nature | Old Tax Regime | New Tax Regime |
---|---|---|
Income from Salary | 670,000 | 1,000,000 |
Income from Other Sources | 20,000 | 20,000 |
Tax Deduction | -175,000 | 0 |
Total Taxable Income | 515,000 | 1,020,000 |
Old Regime:
Tax Slab | Calculation | Tax |
---|---|---|
up to Rs 250,000 | Tax Exempt | 0 |
Rs 250,000 to 500,000 | 5% || (5% * (500,000 – 250,000) | 12,500 |
Rs 500,000 to 1,000,000 | 20% || (20% *(515,000 – 500,000) | 3,000 |
Income Tax | – | 15,500 |
Cess | 4% || (4% of 15,500) | 620 |
Total Tax Payable | – | 16,120 |
New Regime:
Tax Slab | Calculation | Tax |
---|---|---|
up to Rs 250,000 | Tax Exempt | 0 |
Rs 250,000 to 500,000 | 5% || (5% * (500,000 – 250,000) | 12,500 |
Rs 500,000 to 750,000 | 10% || (10% * (750,000 – 500,000) | 25,000 |
Rs 750,000 to 1,000,000 | 15% || (15% * (1,000,000 – 750,000) | 37,500 |
Rs 1,000,000 to 1,250,000 | 20% || (20% * (1,020,000 – 1,000,000) | 4,000 |
Income Tax | – | 79,000 |
Cess | 4% || (4% of 79,000) | 3,160 |
Total Tax payable | – | 82,160 |
As you can see the tax liability changes hugely depending on what tax regime you choose. So you should plan carefully. You can also check the official Income Tax website for calculating your income tax.
As you can see with the above income tax calculation, salary components and salary structure plays a very important role in how much income tax you pay. We have come up with some optimised salary structure using which you pay NO income tax even with CTC of more than Rs 20 Lakhs.
Budget 2020 had introduced the new Vs old tax slabs. Below are the tax slabs
Following changes were made in Budget 2019 applicable for FY 2019-20:
You can download the Income Tax Calculator in Excel for FY 2019-20 from the link below.
Budget 2018 has made some changes to Income tax for individual. There has been no changes in the income tax slab, however there have been some changes related to salaried/pensioner tax payers and senior citizens.
In Budget 2017, the finance minister has made little changes to this. We highlight the changes and give you the new tax calculator for FY 2017-18 [AY 2018-19].
In Budget 2016, the finance minister has made little changes.
The tax slabs have remain unchanged but there have been some changes in terms of Transport Allowance, Medical Insurance benefits and exemption for Physically challenged tax payers.
We have incorporated the 3 changes that happened in Budget 2014 (presented on July 10, 2014)
The finance minister, P Chidambaram in his Budget 2013-14 kept the income tax rates unchanged. The table below shows the summary of tax slabs for FY 2013-14.
There are two minor changes:
Below is the Income Tax Slab for FY 2012-13. A significant difference is there is no more distinction between men and women as far as taxes are concerned.
Below is the Income Tax Slab for FY 2011-12.
You should do the calculation using our income tax calculator and check yourself. In most cases if you do tax saving investments and get salary components tax deduction, you should follow the old tax slab.
You may find both Tax Deduction and Tax exemption terms used interchangeably. But technically both terms have different meaning.
Tax Deduction means you can deduct those from your income. This could be investments like PPF, etc that you do under section 80C. This is tax deducted up to Rs 1.5 lakhs.
Tax Exemption means the income is not taxable like interest earned on PPF.
NRIs (Non-resident Indians) and foreigners have to pay income tax in India on income accrued in India.
For certain high-income tax payers, the government of India has introduced surcharge. As of FY 2021-22 the surcharge is as follows:
Less than Rs 50 Lakh – No Surcharge
Rs 50 lakh to 1 crore – 10%
Rs 1 crore to 2 crores – 15%
Rs 2 crores to 5 crores – 25%
More than Rs 5 crores – 37%
All tax payers have to pay 4% of Income Tax as health and Education cess. This cess is said to be used for the above purpose.
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Is this a free tool? And can we use it for multiple employees?
SIR, HOW CAN I CALCUTATE 20 EMPLOYEE IT IN SINGLE SHEET
Sir please Explain about State Govt Employee Contribution in NPS .Tax Exemption all 3 sections.. Please sir..