Income Tax Calculator

As per the Finance Act, 2017 for Indian Residential Individuals (Male, Female, Senior Citizen & Super Senior Citizen)

* Year

* Individual Type

* Income From Salary

Income From House

Income from Other Sources

Deduction u/s 80C

Deduction u/s 80D

Deduction u/s 80G :

Donation With 100% without any limit

Donation With 50% without any limit

Other Deductions

Income Tax Calculator - Frequently Asked Questions

1. What is Income-Tax ?

It is a tax levied by the Government of India on the income of every person. The provisions governing the Income-tax Law are given in the Income-tax Act, 1961.

2. When do I have to pay the taxes on my income ?

The taxes on income can be finalized only on the completion of the previous year. However, to enable a regular flow of funds and for easing the process of collection of taxes, Income-tax Act has provisions for payment of taxes in advance during the year of earning itself or before completion of previous year. It is also known as Pay as your earn concept. Taxes are collected by the Government through the following means:

Voluntary payment by taxpayers into various designated Banks such as Advance tax, Self-Assessment tax, etc.
Taxes deducted at source
Taxes collected at source

3. What is considered as salary Income ?

Section 17 of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.

4. Is pension income taxed as salary Income ?

Yes. However, pension received from the United Nations Organization is exempt.

5. I am an NRI. Am I required to file income tax return in India ?

NRI or not, any individual whose income exceeds Rs.2,50,000 (for FY 2016-17) is required to file an income tax return in India. Please note that for an NRI, income earned or accrued in India is taxable in India.

6. Is it mandatory to e-file income tax return ?

A significantly large number of returns are e-filed and gradually the income tax department is hoping to bring all returns online. In any of the following cases the Income Tax Department has made it mandatory to e-file your Return. You want to claim an income tax refund :

Your taxable income is more than Rs 5,00,000
ITR-3, 4, 4S, 5, 6, 7 have to be mandatorily e-filed.
Paper returns can only be filed by those who are above 80 years of age or by an individual or HUF whose income does not exceed Rs 5,00,000 and who has not claimed any refund in the return of income.

7. Penalties for non-filing income tax return ?

Under section 271F, the assessing officer may levy a penalty of Rs 5,000 when you have not filed your return. (applicable uptil FY 2016-17)

8. Penalties for non-filing an income tax return from FY 2017-18 ?

Penalty of Rs 5,000 is applicable if Return for FY 2017-18 is filed after due date (31st July 2018) but by 31st December 2018.
Penalty of Rs 10,000 is applicable if Return for FY 2017-18 is filed after 31st December 2018 but by 31st March 2019.
Note: Penalty is limited to Rs 1,000 for those with income up to Rs 5 lakhs.

9. What is an Assessment Year? What is the difference between an Assessment Year and Previous Year ?

A.Y. is the year in which you file return. It is the year in which the income that you have earned in the Financial Year that just ended will be evaluated. For instance, if you have had an income between 1 April 2016 and 31 March 2017, 2017-18 will be the A.Y. As the word ‘previous’ means ‘coming before’, hence it can be simply said that the Previous Year is the Financial Year preceding the Assessment Year. e.g., for Assessment Year 2017-2018 the Previous Year should be the Financial Year ending 31st March 2017.

10. Who is a resident of India ?

If you have spent more than 182 days in India for that F.Y. then you are considered as a resident irrespective of your citizenship or,
If you were in India for 60 days or more during that Financial Year and have been in India for 365 days or more during 4 previous years immediately preceding the relevant Financial Year.

11. What is considered as Income ?

If you are a salaried person, your salary from your employer will be treated as income. On the other hand for a businessman, the net profit will be considered as income. In all there are five heads for income as follows:

Salary
Income from house property
Income from business/profession: This applies for entrepreneurs and small business people who don't get a regular salary income. Some examples are doctors, lawyers, etc.
Capital gains such as profit from sale of house, land, gold, etc.
Income from other sources such as interest received on bank deposits, winnings from lotteries or game shows, etc.

12. Why should I pay Income Tax ?

When your income exceeds the threshold limit set by the Income Tax department that is exempt from taxes, you will have to pay tax on the excess income you earn. It is calculated for the period from April 1 to March 31. This period is referred to as a Financial or Previous year. The tax money garnered is used for the country's development.

13. Do I need to pay tax on gifts received ?

Gift received in cash, which exceed Rs. 50,000, are taxable. However, gift tax is not applicable in the following situations:

Gifts in cash or kind whose value is less than Rs. 50,000
Gifts received on marriage day from friends or relatives
Gifts received from relatives as defined under the act

14. What are Capital Gains ?

Capital gains are gains made by selling capital assets, such as equities, property, land, gold, etc. Under Indian Income Tax laws, you need to pay Income Tax on capital gains. The tax calculation is dependent on whether you have held the asset for a long term or short term as defined by tax laws.

15. What are receipts? Are all receipts considered as Income ?

A receipt is your entire income before tax deductions. Not all receipts are considered as income. Basically, they are of two kinds:

Capital receipt: This is the income earned by selling the source or asset. For example, income earned from selling a property, gold, etc.
Revenue receipt: Income from source such as salary, interest accrued on deposits, rent from property is termed as revenue receipt.

16. If I have paid more tax when filing my returns, will it be refunded ?

Yes, the excess amount will be refunded by cheque or direct credit into your bank account.

17. What are donations ?

If you make any donations to certain qualified institutions or causes, you can claim a tax benefit on the donated amounts. Depending on the receiver of the donation, your donation would qualify either for 100% deduction or 50% deduction.

18. Can NRIs claim rebate under section 87A ?

No, this rebate is only allowed for Residents.

19. Can this rebate be claimed by anyone ?

This rebate is only allowed to individuals. HUFs or firms, or companies cannot claim this rebate.

Advisory : Information relates to the law prevailing in the year of publication / as indicated. Viewers are advised to ascertain the correct position / prevailing law before relying upon any document.

Disclaimer : The above calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances. It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc.