The Income Tax Department NEVER asks for your PIN numbers, passwords or similar access information for credit cards, banks or other financial accounts through e-mail.
The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information relating to their credit card, bank and other financial accounts.
This calculator allows you to compute your tax liability on mere input of your taxable income ...Read More
After ascertaining the total income,
i.e., income liable to tax, the next step is to compute the tax liability for the year. Tax liability is to be computed by applying the rates prescribed in this regard. For rates of tax, refer "Tax Rate" section. Following table will help in understanding the manner of computation of the total tax liability of the taxpayer.
Computation of total income and tax liability for the year
(*) Rebate under
91 is available to a taxpayer in respect of double taxed income,
i.e., income which is taxed in India as well as abroad.
Note : For provisions relating to Minimum Alternate Tax (MAT) in case of corporate taxpayers refer tutorial on "MAT/AMT".
Click here to view prevalent tax rates
This calculator enables estimation of advance tax installments on the basis of taxable income of a tax payer ...Read More
Advance Tax Calculator
Advance tax is to be calculated on the basis of expected tax liability of the year. Advance tax is to be paid in instalments as given below:
Note: Any advance tax paid on or before 31st day of March shall also be treated as paid during the same financial year.
The deposit of advance tax is made through challan ITNS 280 by ticking the relevant column,
i.e., advance tax.
This calculator allows to calculate the Total Income and Tax thereon alongwith interest under section 234 A/B/C ...Read More
Income and Tax Calculator
Section 80C to
80U provides certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the income remaining is called as Total Income. In other words, GTI
less Deductions (under
section 80C to
80U) = Total Income (TI). Total income can also be understood as taxable income. Following table gives a better understanding of the difference between GTI and TI :
Computation of gross total income and Taxable Income
Note : Inter source losses, inter head losses, brought forward losses, unabsorbed depreciation, etc., (if any) will have to be adjusted (as per the Income-tax Law) while computing the gross total income.
Click here to view the detailed document on Treatment of Income from Different Sources
Click here to view prevalent tax rates
This calculator enables valuation of perquisite for medical facility provided to an employee by his employer in India or outside India ...Read More
Treatment of medical facility provided by the employer to employee is as follows:
Medical facility In India
Note: Fixed medical allowance given by employer to employee is fully chargeable to tax.
Medical facility outside India
Expenditure incurred by the employer on medical treatment of employee is taxable subject to the conditions given below:-
This calculator enables calculation of taxable and exempt portion of Transport allowance given to an employee by his employer ...Read More
This calculator enables calculation of taxable and exempt portion of Children Education and Hostel Allowance given to an employee by his employer ...Read More
Children education and hostel allowance
Children education allowance (by whatever name called) is exempt upto Rs. 100/- per month per child up to a maximum of two children.
Further, any allowance granted to an employee to meet the hostel expenditure on his child (whatever name called) is exempt upto Rs. 300/- per month per child up to a maximum of two children.
House rent allowance received by an employee is taxable. However exemption is available under section 10(13A). This calculator enables calculation of taxable and exempt portion of HRA ...Read More
House Rent Allowance Calculator
House rent allowance received by an employee is taxable. However exemption is available under
section 10(13A). The exemption is based on certain set of conditions.
Exemption for House rent allowance is regulated by
rule 2A. The least of the following is exemption from tax:
a. an amount equal to 50 per cent of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40 per cent of salary where the residential house is situated at any other place;
b. house rent allowance received by the employee in respect of the period during which the rental accommodation is occupied by the employee during the previous year; or
c. the excess of rent paid over 10 per cent of salary.
The taxable HRA is a part of income from salaries. While filing Income-tax return, the same should be shown under the income from salary.
Profits and Gains of the profession on presumptive basis u/s 44ADA Section 44ADA is a presumptive taxation scheme.
Profits and Gains of the profession on presumptive basis u/s 44ADA
Section 44ADA is a presumptive taxation scheme. It is applicable to a resident Individual or Partnership Firm (other than LLP) engaged in the specified profession. This scheme can be opted only if the gross receipts of the eligible assessee from the specified profession during the relevant previous year do not exceed Rs. 50 lakhs. However, the limit of Rs. 50 lakhs shall be increased to Rs. 75 lakhs if the amount or aggregate of the amount of cash received during the previous year does not exceed 5% of the total gross receipts of such year. The presumptive income shall be 50% of the total gross receipts of the year from such profession.
An assessee opting for this scheme shall be exempted from maintenance of books of account related to such profession as required under Section 44AA and get them audited as required under
Section 44AB. Further, unlike other taxpayers where advance tax is payable in four instalments, the assessee opting for this scheme can pay 100% of advance tax in a single instalment on or before March 15 of the previous year.
The following professions are specified for this scheme:
Alternate Minimum Tax (AMT) Alternate Minimum Tax (AMT) is payable by a non-company assessee whose regular tax on total income is less than 18.5% (or 9% in case of IFSC unit or 15% in case of co-operative society) of ‘Adjusted total income’. ...Read More
Alternate Minimum Tax (AMT)
Alternate Minimum Tax (AMT) is payable by a non-company assessee whose regular tax on total income is less than 18.5% (or 9% in case of IFSC unit or 15% in case of co-operative society) of 'Adjusted total income'. 'Adjusted total income' is computed by adding to the taxable income various deductions claimed by the assessee.
However, an individual or a Hindu undivided family (HUF) or an association of persons (AOP) or a body of individuals (BOI), or an artificial juridical person (AJP) is not liable to pay AMT if adjusted total income does not exceed Rs 20 lakhs. Further, the provisions of AMT don't apply in the case of an assessee who opts for an alternative tax regime of
The tax liability as per the provisions of AMT shall be the higher of the following:
(a) Tax payable on total income computed as per normal provisions of the Act;
(b) Tax payable on the adjusted total income computed at the rate of 18.5% or 9% or `15%, as the case may be.
The tax computed as per normal provision or as per AMT shall be further increased by the applicable surcharge and health & education cess before comparing the higher of the two. The excess tax liability arising due to AMT can be claimed as a credit in subsequent years.
Minimum Alternate Tax (MAT)
Minimum Alternate Tax (MAT) is payable by companies whose tax on total income is less than 15% (or 9% in case of IFSC unit) of 'book profit'. 'Book profit' is computed by making specified additions and deletions to the profits determined as per the statement of profits of the company. MAT is payable even if the total income of a company is
nil or it has tax losses. The excess tax liability arising due to MAT can be claimed as a credit in subsequent years.
The tax liability under MAT shall be higher of the following:
(c) Tax on the total income of the company computed at the applicable rate of 25% or 30%or 40% or a special tax rate
(d) Tax on book profits computed at the rate of 15% or 9%, as the case may be.
The tax computed as per normal provision or as per MAT shall be further increased by the applicable surcharge and health & education cess before comparing the higher of the two. It is to be noted that the provisions of MAT don't apply in the case of an assessee who opts for an alternative tax regime of
Section 115BAA and