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Income Tax Calculator – Calculate your Taxes using Income Tax Calculator

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Marg ERP Ltd
MARG ERP Ltd. has its expertise in providing the perfect customized inventory and accounting solutions for all businesses to get GST compliant.

There are five types of income a salaried person can gain. These are Income from salaries, House property (Rentals), Business, capital gains, and any other sources.

Gross Income Calculation

Income from Salary
Income from House Property (Rentals)
Income from Business or Profession
Income from Capital Gains
Income from other sources
Total Gross Income =
  1. Income from Salary – The income you are directly getting by your employer is your salary.
  2. Income from House Property – If you have any rental property (house, office, building, land and etc.) from where you are getting additional income.
  3. Income from Business/Profession – If you run a business or profession apart from your employment, you have to mention the income.
  4. Income from Capital Gains – If you get any profit from mutual funds, stocks, land selling and etc, you have to mention the income. Example: if you bought 1,000 units of any mutual fund at 10,000 rupees, it means 1 unit at 10 rupees. And after 2 years (this year), you are selling at 12000 rupees, which means you got 2 rupees profit from each unit. You have to show your 2000 rupees profit income.
  5. Income from other sources – You have to mention all types of income like interest from savings accounts, FDs and etc. You should mention all the incomes.

Gross Income = Salary + Rentals + Business + Capital Gains + Other Sources

This is not your taxable income, this is your gross income. After calculating gross income, you have to calculate deductions.

Deduction Calculations

Deductions u/s 80C (Limit = 150000)
(PF, PPF, LIC, Housing Loan Principal, NSC, ELSS, Fixed deposit)
Deductions u/s 80 CCD (Limit = 50000)
(National Pension Scheme called NPS)
Deductions u/s 80D
(For Mediclaim Premium)
Deductions u/s 80G
(Donation to NGOs)
Deductions u/s 80 TTA (Limit = 10000)
(Saving Account Interest)
  1. Deductions u/s 80C – You can get 1.5 lacs deductions under section 80C for PF, PPF, LIC policies, for housing loan principal amount, NSC, ELSS, and fixed deposits.
  2. Deductions u/x 80 CCD – If you take a national pension scheme, you can get 50000 rupees deductions.
  3. Deductions u/s 80D – If you take any medical insurance, you can get deductions according to age. Complete details of it, are ahead in the article.
  4. Deductions u/s80G – If you donate to NGOs, you get deductions. The Government has given some rights to some NGOs, if you donate there, you get 100% deductions and from some NGOs, you get 50% deductions. You should be having a proper receipt of NGO Donation to become eligible for deductions.
  5. Deductions u/s 80 TTA – Here, you can get 10000 maximum deductions of interest which you get from your saving account.

HRA (House Rent Allowance)

If you are a salaried person and getting actual HRA from the employer which is mentioned in salary slip. You can get HRA deductions if you are living in a rented house. Suppose you are not getting HRA from the employer, then you can get 5000 rupees monthly deductions u/s 80GG, which is 60000 rupees annually.

Amount of Exemption (The least value) from these 3s.
  1. Actual HRA
  2. Actual Rent Paid – 10% of {Basic Salary + DA (Dearness Allowance)}
  3. 50% of {basic salary + DA} for metro cities OR 40% for non-metro cities

Standard Deductions

From FY 2019-20, every employee can get flat 50000 rupees deduction.

Housing Loan Deductions

There are two things cover in housing loans.

  1. The actual loan amount – You can get a deduction up to 1.5 lacs u/s 80C and you can also claim deductions for Stamp Duty & Registration Fee.
  2. The interest – You can get a deduction up to 2lacs u/s 24(b) for the interest you pay.

Mediclaim Deductions

Age Limit Premium Deductions u/c 80 D

Maximum Deductions

Self, Spouse, Children Parents
Individual and Parent below 60 years 25000 25000 50000
The individual below 60 and parent above 60 25000 50000 75000
Both above 60 50000 50000 100000

Now, you have a complete calculation of Deductions.

Taxable Income = Gross Income – Deductions

What are the slabs for taxable income?

Tax will be charged on taxable income, not in your gross income. Now understand, what is Income tax slabs for taxable income.

Income Tax Slabs Rate of tax
Up to 2,50,000 Rupees Tax-Free Zone
2,50,000 to 5,00,000 Rupees 5% Tax of Total Income
5,00,000 to 10,00,000 Rupees 20% Tax of Total Income
10,00,000 and Above 30% Tax of Total Income

According to income tax slabs, you have to calculate your tax and add 4% Cess on your total income tax.

Important Note: If your tax is below 5lacs, you can get a rebate of 12500 u/s 87A.

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