Monday, 21 January 2019

Official Income Tax Calculator By Income Tax Authority Of India : Calculate your Tax Easy

Official Income Tax Calculator By Income Tax Authority Of India : Calculate your Tax Easy

CcLICK HERE. for income tax calculator

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.

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Income Tax Rates for taxpayers under 60 years of age in FY 2018-2019 and FY 2017-2018

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%

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 medical reimbursements, telephone bills reimbursement. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA, by using this HRA Calculator.

Transport allowance is given to employees as part of their salary to meet travel expenses from residence to work & back. Starting financial year 2015-16, limit of exemption on transport allowance is 1,600 per month or Rs 19,200 per annum. For example - if you receive Rs 2,000 as transport allowance every month, Rs 1600 shall be exempt from tax and remaining Rs 400 per month or Rs 4,800 per annum shall be taxed as salary income.

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. Transport Allowance of Rs 8,000 per month. Special Allowance of Rs 5,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 20,000 and lives in Delhi.

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)

CcLICK HERE. for income tax calculator

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