Thursday, 13 January 2011

Calculate Your Income Tax Liability Automatically

This quick and easy tax calculator helps you to calculate your income tax liability automatically with giving your income and few details. The end of the financial year is almost at the doorstep. This is the right time to recalculate your tax liability. In case of employees the employer is deducting TDS (Tax deducted at source) and should not be much worry about the calculation of income tax. But you can also make this calculation easily and can double check the accuracy of TDS deducted by the employer and if you have any other source of income (passive income) you can add it up and recalculate the tax. Here we are giving some income tax details and a window for calculating your tax automatically.

How to use this Tax Calculation window

In first step you select the Assessment year (Assessment year is year after financial year, suppose 2011-2012 is the assessment year of financial year 2010-11)

Second step select the category such as Male (Gents less than 65 years), Female (Ladies less than 65 years and Senior citizen (both Gents and Ladies who have completed 65 years of age)

In the first box you can give gross salary (you can calculate the gross salary from the pay slips or from form 16)

In the Second input box give all exemptions under section 10 such as Transport allowance, LTC, HRA and all other permissible items up to the allowed limit.

In the third box give entertainment allowance (as per exemption limit) and professional tax

If you have income from any other sources such as rent, interest, Capital gain, income from business etc. ,input the total taxable amount of that income in the fourth box

In the Fifth input box give the total exemptions under sections 80C to 80U such as all permissible investments (80C), Pension Fund (80CCC), New Pension Scheme (80CCD), Infrastructure Bond (80CCF), Mediclaim (80D), Donations (80G), Rent paid(80GG) etc.

And in the final step Click on Calculate to get your Tax liability for the year.

To know the Tax rate see the table below

Following table shows the ax rates for Gents, Ladies and Senior Citizen for the financial year 2010- 2011 (Assessment year 2011-2012) with an illustration of a person in each category with a taxable income of Rs. 900000.

Taxable Income = Total income – All admissible deductions and exemptions

Tax rate for Gents (Age is less than 65 Years)

Taxable Income up to Rs. 160000Nil160000Nil
Income from 160000 to 50000010%34000034000
Income from 500000 to 80000020%30000060000
Income more than 800000030%10000030000
Education Cess (3% of Tax)3720
Total Tax to be paid127720

Tax Rate for Ladies (Age is less than 65 Years)

Taxable Income up to Rs. 190000Nil190000Nil
Income from 190000 to 50000010%31000031000
Income from 500000 to 80000020%30000060000
Income more than 800000030%10000030000
Education Cess (3% of Tax)3630
Total Tax to be paid124630

Tax Rate for Senior Citizen (Both ladies and Gents completed 65 years)

Taxable Income up to Rs. 240000Nil240000Nil
Income from 240000 to 50000010%26000026000
Income from 500000 to 80000020%30000060000
Income more than 800000030%10000030000
Education Cess (3% of Tax)3480
Total Tax to be paid119480

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