TaxCalc_2006

Income Tax Calculator Version 9.0 © 1997-2006, Nithyanand Yeswanth Available for free download at: http://www.ynithya.com/taxcalc/ email: taxcalc@ynithya.com PLEASE ENTER YOUR NAME HERE DISCLAIMER This tax calculator can be used to calculate the approximate tax payable by salaried individuals. This should NOT be used to compute the actual taxes to be paid to the Government. The author is not resposible for any inaccuracies in the tax computed by this calculator. If you find any inconsistency, please let me know and I will try to fix it at the earliest PLEASE READ THESE INSTRUCTIONS CAREFULLY 1 2 3 4 5 6 7 8 This sheet can be used to compute the tax for salaried individuals only Enter the numbers only in the yellow-colored cells. You will not be able to enter data in other cells Do not leave any yellow cell (that expects numbers) blank. This may lead to incorrect calculation. Instead, enter 0 The darker yellow colored cells (with green text) constitute the setup parameters, which you may have to set only once. Ensure that all setup parameters in cells B4 to L4 and V24 to V44 are setup prior to using the calculator Depending on your company policy, change cells B4 to L4 to select elements of your salary that count towards calculation of PF If you are in Delhi, Mumbai, Kolkata or Chennai, change the location to Metro in Cell V24 Enter the PF deduction percentage in cell V27 depending on your company policy. In addition, if your company limits the PF to a certain amount, enter that amount in cell V28. If there is no PF deduction, enter 0% in cell V27 If you have opted for VPF (Voluntary Provident Fund), change cell V31 depending on whether the deduction is done as a percentage of salary or as a fixed amount. If it is done as a percentage, enter the percentage in cell V29. This will apply the same percentage throughout the year. If the percentage changes month to month, enter the percentage for each month in cells AC5 to AC16 (If you leave any of these cells at 0, the default percentage from cell V29 will be taken for that month). If the deduction is a fixed amount, enter the amount for each month in cells AC5 to AC16 If the interest rate on PF is other than 8.5%, change the value in cell V30 If you are claiming exemption on housing loan interest, remember to update cells V33 and V34 (see below for the rules) If you are claiming exemption for medical insurance that includes premium for a dependent over 65 years, change cell V36 If you are claiming exemption for medical treatment for specific diseases for a dependent over 65 years, change cell V37 If you have a permanent physical disability, change cell V38 If you are above 65 years of age, change cell V39. You will get additional exemption If you are a woman, remember to change cell V40. You will get additional exemption If you live in company-provided house, change cell V41 and V42; 20% of salary will be added as perks for cities with more than 4 lacs population and 7.5% for other cities. If rent has been paid (cells S5 to S20), the same will be deducted from this perks amount If you are using company-provided car for office and personal user, change cell V43 and V44 and cells AE5 to AE16; Rs.1,200/- per month will be added as perks if the car engine capacity is less than 1600cc and Rs.1,600/- per month if the engine capacity is more than 1600cc. In addition, if the company provides a driver, update cells AF5 to AF16. Driver perks will be Rs.600/- per month If you are claiming vehicle maintenance exemption update cells AE5 to AE16 to reflect the months in which you had the car If you are claiming vehicle maintenance exemption and if you include driver's salary in the exemption, change cells AF5 to AF16 If you have been out of India during the year, update cells AG5 to AG16 so that conveyance exemption is computed correctly If you have taken any company loans at interest rates lower than that prescribed by the Government, please enter the details in the sheet "Perquisites" You can enter the opening balance in your PF account as at the beginning of the year in cell AA5 and PF loans/withdrawals in cells Z5 to Z16 to calculate the closing balance (including employer's contribution) in your account at the end of the year Update the earnings (cells B5 to L16) with expected earnings during the year. On the deductions side, enter the expected rent payment, Profession Tax and Life Insurance Salary deduction details for all months. As and when salary is received, update all the earnings and deductions for that month Enter expected bonus in Cell M19, if bonus for the year has not been paid yet. If paid, enter the actual amount Enter any other earnings related to salary in cell M20 If tax has been deducted outside salary (such as TDS for bank deposit, etc.), enter the amount so deducted in cell E48 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Page 1 of 7 Patni GE Confidential Income Tax Calculator Version 9.0 © 1997-2006, Nithyanand Yeswanth Available for free download at: http://www.ynithya.com/taxcalc/ email: taxcalc@ynithya.com 27 28 29 30 31 32 33 Enter the remaining months in current financial year in Cell E51, to figure out the tax per month You can change the headings for the 4 "Misc" earnings and the 3 "Oth Ded" deductions columns to suit your salary structure Rent can be entered in cells S5 to S16, if deducted through salary; Otherwise enter annual figure in S18 to S20. If you enter rent amount in any cell between S5 to S16 do not enter any amount in cells S18 to S20 and vice-versa Enter expected investments/savings/expenses information in cells L26 to L54 Other exemptions entered in cell L26 is not checked. So, please be sure about the amount entered Enter non-salary related other income (such as from interest) in cell L35 You can enter the details of NSC's purchased during the last 5 years in the "NSC Accrued Interest" sheet to calculate the accrued interest automatically. This interest is exempt under sec 80C Page 2 of 7 Patni GE Confidential Income Tax Calculator Version 9.0 © 1997-2006, Nithyanand Yeswanth Available for free download at: http://www.ynithya.com/taxcalc/ email: taxcalc@ynithya.com TAX RULES & OTHER USEFUL INFORMATION 1 2 3 HRA exemption = minimum of (40% (50% for metros) of Basic+DA or HRA or rent paid - 10% of Basic+DA) Transport allowance is exempt upto Rs.800/- per month provided the person is in India during the month. For people having permanent physical disability, the exemption is Rs.1,600/- per month Vehicle maintenance exemption can be claimed if you use a car for travel to the workplace. In such case, exemption can be claimed for the petrol and vehicle maintenance amounts. The exemption is available to the tune of Rs.1,200/- per month if the engine capacity is less than 1600cc and Rs.1,600/- per month if the engine capacity is more than 1600cc. In case the amount includes driver's salary, there is an additional exemption of Rs.600/- per month. When this exemption is claimed, transport allowance exemption is not available. Medical bills are exempt for self and dependent family, upto Rs.15,000/- per annum LTA is exempt to the tune of ecomony class airfare for the family to any destination in India, by the shortest route. LTA can be claimed twice in a block of 4 calendar years. The current block is from 2002 to 2005 Gratuity, VRS and some such amounts are exempt upto certain limits. If you get any such payment, please find out the exact limit for you from a tax consultant and enter in cell L26 Children's Education allowance is exempt upto Rs.100/- per child per month plus Rs.300/- per child per month for hostel expenses (max of 2 children only) There is an exemption for interest on housing loan. If the loan was taken before Apr 1, 1999 exemption is limited to Rs.30,000/- per year. If the loan was taken after Apr 1, 1999 exemption is limited to Rs.1,50,000/- per year if the house is self-occupied; there is no limit if the house is rented out This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you've paid it or not If you have rented out your house, enter the total income/loss from the house (after deducting property tax and standard maintenance expenses) in cell L33 Medical Insurance (such as Mediclaim) premium is exempt upto Rs.10,000/- per year. If the premium includes that for a dependent who is above 65 years of age, an extra Rs.5000/- can be claimed Deduction in respect of medical treatment of handicapped dependents is limited to Rs.50,000/- per year if the disability is less than 80% and Rs.75,000/- per year if the disability is more than 80% Deduction in respect of medical treatment for specified ailments or diseases for the assesse or dependent can be claimed upto Rs.40,000/- per year. If the person being treated is a senior citizen, the exemption can go up to Rs.60,000/Interest repayment on education loan (taken for higher education from a university of self only) is completely tax exempt Donations given for certain charities are tax exempt. Some are exempt to the tune of 50%, whereas others are 100%. Please enter the actual amount exempt, in cell L41 If you do not get HRA, but have rented a house, an exemption is available. This will be calculated as minimum of (25% of total income or rent paid - 10% of total income or Rs.24,000/- per year) Donations for certain scientific research and rural development are exempt. Please enter the actual amount exempt in cell L44 Interest earned from all sources is to be included in cell L35. All interest income is fully taxable If you have a permanent physical disability (including blindness), you can take an exemption of Rs.50,000/- per year Investments up to 1 lac in PF, VFP, PPF, Insurance Premium, Housing loan principal repayment, NSC, ELSS, etc. are deductible from the taxable income under sec 80C (there is no limit on individual items, so all 1 lac can be invested in NSC, for example) Surcharge on Income tax is applied at 10% of the tax amount, if the taxable income is more than Rs.10,00,000/Education cess is calculated at 2% on total tax payable For the current year, Govt. prescribed rate of interest for PF is 9.5%. If the employer pays interest higher than this, the differential interest earned is treated as perquisites 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Page 3 of 7 Patni GE Confidential Income Tax Calculator Version 9.0 © 1997-2006, Nithyanand Yeswanth Available for free download at: http://www.ynithya.com/taxcalc/ email: taxcalc@ynithya.com HOW TO GET AN UPDATE / CONTACT ME 1 2 3 4 5 6 7 8 9 10 This tax calculator constantly gets updated to fix errors found as well as to add new features This may also be changed when there are changes in tax rules that affect income tax computation The latest version of this tool will be available for free download from the Internet at http://taxcalc.ynithya.com/ Please check back frequently (at least once every 2 months) to see that you have the latest version. You can compare the version number at the top of this instructions page. However, if you have subscribed, you will automatically receive updates You can also send a blank e-mail to taxcalc@ynithya.com with only the subject line as "SEND TAXCALC" and you will automatically receive the current version of tax calculator within a day or two If you want me to send you an updated version automatically, whenever I update, please send a blank e-mail to taxcalc@ynithya.com with only the subject as "SUBSCRIBE" If you find any inaccuracy in the calculation or want clarification on some aspect of the tax calculator, please send an e-mail to taxcalc@ynithya.com with subject as "CLARIFICATION" and I will try to reply within a week If you are already on my list and no longer want to get updates, send a blank e-mail to taxcalc@ynithya.com with only the subject as "UNSUBSCRIBE" While sending e-mail, please ensure that the subject line is exactly as given here (without the quotes), because the processing is done automatically Since I am not a chartered accountant or a tax consultant, I am not in a position to answer specfic queries related to taxation. You will have to contact a tax consultant for your specific queries Page 4 of 7 Patni GE Confidential 4/24/2008 Income Tax Projections for Financial Year 2005-06 PLEASE ENTER YOUR NAME HERE Earnings Deductions LTA N Misc N Misc N Bonus N Misc N Total 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Limited 0 0 0 0 0 0 0 0 Limited 0 0 0 Limited 0 0 0 0 0 0 0 0 0 Limited 0 0 0 0 0 0 0 0 0 PT PF 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 VPF 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 IT 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Rent Life Insur. 0 0 0 0 0 0 0 0 0 0 0 0 0 Medical Conveyance Oth Ded 0 0 0 0 0 0 0 0 0 0 0 0 0 Tot Ded 0 0 0 0 0 0 0 0 0 0 0 0 0 Net 0 0 0 0 0 0 0 0 0 0 0 0 0 Include for PF? April May June July August September October November December January February March Total Perks Bonus Other Earnings Gross Basic Y DA Y Convey N HRA N Ch. Educ N Medical N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Produced 0 0 15000 0 0 0 Produced 0 0 0 Produced 0 0 0 0 0 0 0 Produced 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Tax Computation Gross Salary Profession Tax Exemptions under section 10 & 17 Gross Salary after Section 10 & 17 exemptions Accommodation/Car Perquisites Income chargeable under head 'Salaries' House property / other income or loss Other income Gross Total Income Deductions under chapter VI-A Deductions under sec 80C Net taxable income Tax Slabs Tax rate Appl Amt Balance 00000 - 100000 0% 0 0 100001 - 150000 10% 0 0 150001 - 250000 20% 0 0 > 250001 30% 0 Tax on Income Surcharge on Income Tax Tax including Surcharge Education Cess Total Tax Liability Total Income tax paid from salary Tax paid outside of salary Income tax due Remaining months in year 0 0 0 0 0 0 0 0 0 0 0 0 Tax 0 0 0 0 0 0 0 0 0 0 0 0 12 Tax refund 0 Exemptions under section 10 & 17 HRA Exemption (Sec 10 (13A)) Transport Exemption (Sec 10(14)) Other exemptions under Sec 10 (10) (gratuity, etc.) Medical Bills Exemption (Sec 17(2)) Children's Education Allowance Exemption (sec 10 (14)) LTA exemption (Sec 10(5)) Vehicle Maintenance (petrol/maint. Bills) (Sec 10 (14)) Total Exempted Allowances Other income House/property income or loss (enter loss as negative) Interest on housing loan (for tax exemption) Other income (interest, etc.) Deductions under Chapter VI-A Medical Insurance Premium (sec 80D) Medical for handicapped dependents (Sec 80DD) Medical for specified diseases (Sec 80DDB) Higher Education Loan Interest Repayment (Sec 80E) Donation to approved fund and charities (sec 80G) Rent deduction (sec 80GG) only if HRA not received Deduction for permanent disability (80U) Any other deductions Total Deductibles Rebate under Chapter VIII Dedn under Pension scheme (sec 80C) NSC (sec 80C) Public Provident Fund (sec 80C) Employees Provident Fund & Voluntary PF (sec 80C) Children's Education (sec 80C) Housing loan principal repayment (sec 80C) Insurance premium (sec 80C) Infrastructure Bonds & others (MF, ULIP, etc.) (sec 80C) Total Investments SETUP PARAMETERS Metro/Non-metro (M or N) Exempt limit (of Basic+DA) PF/VPF deductions PF as a percentage of "Salary" PF limited to Rs. (if there is a max. limit for deduction) VPF as a percentage of "Salary" Interest rate on PF/VPF VPF as "Percentage of salary" or "Fixed amount"? (P or F) For Housing Loan House self-occupied? (Y or N) Loan taken after Apr 1, 1999? Miscellaneous Sr. citizen included in medical insurance premium? (Y or N) Sr. citizen included in medical treatment u/s 80DDB? (Y or N) Have permanent physical disability? (Y or N) Are you a senior citizen (age above 65 years)? (Y or N) Male or Female Do you live in Company provided accommodation? (Y or N) If living in Co. acco, is population of your city > 4 lacs? (Y or N) Using company provided car? (Y or N) Vehicle cubic capacity > 1600cc? (Y or N) M 50% 12.00% 0 0.00% 8.5% P Y Y N N N N M N Y N N Free Download from http://taxcalc.ynithya.com/ (Version 9.0) Patni GE Confidential © 1997-2006, Nithyanand Yeswanth (taxcalc@ynithya.com) 4/24/2008 Perquisites Valuation for Income Tax Projections PLEASE ENTER YOUR NAME HERE PERQUISITES VALUE OF LOANS TAKEN FROM THE COMPANY Housing Loan 0 Vehicle Loan 0 PC Loan 0 Soft Loan 0 Salary Loan 0 Education Loan 0 Phone Loan 0 Marriage Loan 0 Other Loan 0 CLA Loan 0 Other Loan 0 Original Loan Amount Loan Taken In Month/Year Loan Closed Month/Year No. of instalments Co. interest rate EMI Original Loan Amount Loan Taken In Month/Year Loan Closed Month/Year No. of instalments Co. interest rate EMI Prescribed interest rate 100 0.00% 0 0 50 4.00% 0 0 36 0.00% 0 0 36 4.00% 0 0 10 0.00% 0 0 36 0.00% 0 0 15 0.00% 0 0 36 0.00% 0 0 50 0.00% 0 0 36 4.00% 0 0 50 0.00% 0 0 Second Loan Details (if loan of same type is taken again during the year) -- see Instructions below 100 0.00% 0 10.00% 50 4.00% 0 10.00% 36 0.00% 0 13.00% 36 4.00% 0 13.00% 10 0.00% 0 13.00% 36 0.00% 0 13.00% 15 0.00% 0 13.00% 36 0.00% 0 13.00% 50 0.00% 0 13.00% 36 4.00% 0 13.00% 50 0.00% 0 13.00% Total value of Perquisites for the year 0 Free Download from http://taxcalc.ynithya.com/ (Version 9.0) Patni GE Confidential © 1997-2006, Nithyanand Yeswanth (taxcalc@ynithya.com) 4/24/2008 Accrued Interest for NSC PLEASE ENTER YOUR NAME HERE NSC Accrued Interest Calculation Certificate No. Date of Purchase Amount invested 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Accrued Interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Total Accrued Interest 0.00 Free Download from http://taxcalc.ynithya.com/ (Version 9.0) Patni GE Confidential © 1997-2006, Nithyanand Yeswanth (taxcalc@ynithya.com)