The government has changed the income tax rules for FY 2018-19. Now there would be a standard deduction of ₹40,000 for salaried person. The Following income tax calculator factors the changed rule. This the excel version of the income tax calculator. I have made this calculator on Google Spreadsheet. To use it as excel file, just download it as excel extension. The method is given below. Meanwhile, you can also use this excel based calculator online as well.
How To Download Income Tax Excel Calculator
The calculator you see above is the embedded file of Google spreadsheet. You can very easily download this spreadsheet as an excel file. You have to follow these steps.
- Click on the ‘File’ Menu
- Select the ‘Download As’ option.
- Choose the Microsoft Excel. It is the first option.
- Save the file to your computer.
You can use the saved file as and when required.
How To Use The Income Tax Calculator
The calculator is simple and self-explanatory. However, the first time user may face some difficulties. Hence, I have explained every field in detail.
Type of Income
In this field, you have to tell whether you do a job or self-employed. If you have a job and get a salary, you would get the benefit of the Standard Deduction. The government gives standard deduction benefit of ₹40,000.
In this field, you have to tell your income. It should be your taxable income. When you deduct all the exemption from the gross income, the resultant income would be your taxable income. This taxable income should be entered here. The section 8 of form 16 has this value.
Section 80C Deductions
The section 80C of the income tax act gives the benefit of tax deduction against some specified investment. These specified investments are EPF, PPF, ELSS, ULIP, Insurance, NSC etc. This tax deduction is limited to 1.5 Lakh.
In the given field you have to enter the aggregate amount of the section 80C investments. Note, the calculator would not take account of any investment which is above the 1.5 Lakh.
Extra Voluntary NPS
The government has given an extra tax benefit to the NPS investment. If you invest in NPS scheme, other than the mandatory contribution, There would be an extra tax deduction. You can claim the deduction of up to 50 thousand under this rule.
The government gives an extra tax deduction for the medical insurance. Under section 80D, you can claim a tax deduction for medical insurance. This deduction is limited to ₹20 thousand. For senior citizens, the limit is 50 thousand.
Home Loan Interest
Home loan Interest gets an extra tax deduction. This can go up to ₹2 lakhs. you must mention it as this can reduce your tax liability considerably.
Learn Tax Details according to Slabs
This calculator tells you the applicable income tax according to the latest income tax slab of FY 2018-19. Your income is divided into different slabs. The tax is calculated for each slab. The aggregate tax of different slabs makes your income tax. To know the income tax, slab-wise, Download the file and make the hidden rows visible.
You would also get the tax rebate in case your income is 3.5 lakhs or less. The government gives a rebate of ₹2,500. However, this rebate wouldn’t be more than your tax liability. Before 2017. this rebate was 5000 and for the income of up to ₹5 lakhs.
The government also charges Cess on the income tax payer. The cess is applicable to your income tax. Hence, you have to pay it only if there is an income tax liability. In fact, cess is calculated as the percentage of the payable income tax. The calculation is done at the end after applying rebate or surcharge.
As of now, the Cess is 4% of the income tax. The cess is collected for the education and Health schemes.
Using this calculator, you would easily know the income tax. After this, your next step should be the tax planning so that you can easily reduce your tax outgo. There are many ways of tax saving. Also, It is prudent to pay tax on time, to avoid the penalty. Finally, you would have to also file income tax return. By filing return, you can get back the excess tax paid to the government.