Jun 6, 2009

Income Tax Calculator (PY 2008-09, AY 2009-10)

I’ve already talked about how to calculate your income tax liability in an earlier post.However, some of you might not be interested in calculating your tax liability on your own, or don’t want to put unnecessary effort in understanding complexities & intricacies of tax laws. DON’T WORRY. There's an easy way out.

Photo by Felix Idan

Income Tax Calculator (PY 2008-09 & AY 2009-10):

Here's a ‘TAX CALCULATOR’ by “The Money Quest” which will provide you with a correct estimation of your income tax liability for the financial year 2008-09 (Assessment Year 2009-10).

Notes / Instructions for Using Tax Calculator:

1. The calculator is meant only for tax calculations of residents individuals. In other words, it is not applicable for non-residents.

2. It is presumed that there is no agricultural income.

3. This calculator is meant to calculate tax provided you know your GTI (i.e. Gross Total Income). GTI includes all your taxable income under various heads of income (Salary, House Property, Income from Business & Profession, Capital gains and Income from other sources) after excluding all your exempt income (i.e. income which is not taxable) and also after set off and carry forward of losses of current year & earlier assessment years.

4. Please note that LTCG on equity shares or equity oriented mutual funds on which securities transaction tax has been paid are exempt from tax u/s 10(38) and therefore doesn't form part of long term capital gains (LTCG). So, ensure that you exclude it from GTI also.

5. Please also note down that "Incomes subject to special rates of tax" is to be included under GTI and also to be mentioned separately under the relevant column in the tax calculator.

6. In the “Tax Payer Status” column, please enter 1 for senior citizens [i.e., if you’re an individual (man / women) above 65 years at any time during the year 2008 – 09 (Apr 2008 – Mar 2009)], 2 for Women and 3 for other individuals.
Before filing your tax returns for the current assessment year (AY) 2009-10 (PY 08-09), make sure to cross-check your tax liability with the help of this calculator.

I’ve tried my best to make this income tax calculator hundred per cent accurate for application under different scenarios of income. Still, if you notice any bug, just leave a comment in the comment box below and I’ll do my best to make the necessary correction in the tax calculator.

Finally, can you answer this money teaser?

Suppose your ‘Taxable Income’ / ‘Net Income’ is Rs 10 lakh and your employer offers you a bonus of Rs 30,000. Will you accept the offer? Why or why not?
UPDATE (July 16, 2009): For answer to the money riddle, see Amazing Facts about Income Tax Rates. And, if you’re looking for a tax calculator to calculate your tax liability for the current financial year 2009-10 (AY 2010-11), go to TAX CALCULATOR FY 2009-10.

Also see:

1 comment:

  1. AnonymousMay 28, 2010

    I am in a retail trade and my turnover for the FY 2009-2010 is 1500000 and profit@11% = 1,65000 RS.Now if I file return under Section 44 af DO I Need to maintain books of Accounts or any receipts of sale or Bills or purchase.
    Thx in advance


You’re welcome to post a comment if you’d like to air your views, or if you’ve any further question to ask, but please stick to the topic and don’t forget to write your name.