Tag: income tax

Income Tax Calculator 2009-2010

The new budget didn’t change much in tax computation, the slabs were raised by 10,000, so after the change, the new slabs are Rs.240,000 for senior citizens, Rs.190,000 for women and Rs.160,000 for others. Surcharge of 10% on personal tax has been removed.

“Plan early and start early”. That’s the saving mantra. So download Nithya’s Tax Calculator and figure out how much you will need to pay as taxes, and how much can you save.

Also Read: Tax Saving made easy. Simple guide to save income tax.

Disclaimer: The information on the site is to be used only as a resource. Nothing published on this site should be considered as investment advice.  I advise users to check with certified experts before taking any investment decision. I do not guarantee the accuracy, adequacy or completeness of any information and am not responsible for any errors or omissions or for the results obtained from the use of such information. You are solely responsible for making your own investment decisions.

Start planning for taxes now

January marks the start of a new year, but it also marks the last quarter of the financial year. Its that time of the year where you have to start planning for taxes. I have been getting some queries as to how can one save tax, so this post is an answer to that. Its always a good idea to start early and start investing, for retirement and tax saving. We’re more concerned about the later, so lets get on with the ways you can do so.

Home Loans
Your interest paid on home loans is eligible for tax deduction. So you can save upto Rs 1,50,000 per year this way.

Section 80D
Medical Insurance Premiums: This is a must have really. I suggest everyone should get a mediclaim aka the medical insurance. According to Section 80D, you get a rebate upto Rs. 15,000 on the premiums. So its really worth it.

Section 80C Deductions
These are pretty famous ones, and used the most to save tax upto Rs 1,00,000. The tax saving instruments under Section 80C are:
Provident Fund or Public Provident Fund: Provident Fund (PF) or Public Provident Fund (PPF) is a nice way to save tax, if you are salaried chances are your employer is already deducting some amount towards PF, it has a good rate of interest and the amount of money deducted from your salary, equal amount is also added by the employer towards your Employees Provident Fund (EPF) account. So the simple math is that if you pay say Rs 4,000 annually towards your PF account your employer also pays Rs 4,000 annually, so that gives you Rs 8,000 plus 8.5% interest, which is really good.
Life insurance premium: Another must have. Everyone should have a life insurance. And whatever amount you pay towards the premium, is tax deductible. So get a insurance policy with a premium which satisfies your tax saving requirements. You can use a tax calculator to get your taxable amount. These days its usually the Unit Linked Inusrance Policy (ULIP) which are most in use. They are far better than the traditional insurance policies because the amount of money you pay towards the inusrance premiums you are alloted some units, which has certain value and which differs from insurance company to insurance company. So your unit will give you the value it will have after some years down the line, which is an added bonus to your policy maturity value.

Other than the ones mentioned above there are some more ways to save tax, such as Equity Linked Saving Schemes (ELSS) namely the mutual funds, National Savings Certificates (NSC).

So plan however you want to save tax and start early. Mind you some of the options are linked to the share markets, so it might not yield instant money, but in the long run its definitely worth a shot. So if you have a risk appettite, go for the ELSS.

Disclaimer: The information on the site is to be used only as a resource. Nothing published on this site should be considered as investment advice.  I advise users to check with certified experts before taking any investment decision. I do not guarantee the accuracy, adequacy or completeness of any information and am not responsible for any errors or omissions or for the results obtained from the use of such information. You are solely responsible for making your own investment decisions.

Income Tax Calculator 2008-2009

If you are wondering how to calculate your income tax, don’t worry, Nithya has an answer to that, with his superb tax calculator. I made a blog post for the last financial year too about the 2007-2008 Income Tax Calculator, so here is the new version of that for the 2008-2009 financial year. Get Nithya’s Tax Calculator and fill up the excel sheet with the various inputs you need to provide and it will calculate the tax. Its covers all the aspects of it and works great. I was not that aware about income tax last financial year, so I didn’t plan well. This time though, and with the help of this tax calculator, I’ve been able to plan my investments to save tax. Thanks a lot Nithya!

Here are the Income Tax Rates in India:

* No income tax is applicable on all income up to Rs. 1,50,000 per year. (Rs. 1,80,000 for women and Rs. 2,25,000 for senior citizens)
* From 1,50,001 to 3,00,000 : 10% of amount greater than Rs. 1,50,000 (Lower limit changes appropriately for women and senior citizens)
* From 3,00,001 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 + 15,000 (Rs. 12,000 for women and Rs. 7,500 for senior citizens)
* Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 + 55,000 (Rs. 52,000 for women and Rs. 47,500 for senior citizens)

Surcharge

A 10% surcharge (tax on tax) is applicable if the taxable income (taking into consideration all the deductions) is above Rs. 10 lakh (Rs. 1 million). The limit of 10 lacs was increased to Rs. 1 crore (Rs. 10 million) with effect from 1st June 2007 for corporate assessees.

Education Cess

All taxes in India are subject to an education cess, which is 3% of the total tax payable.

Also Read: Tax Saving made easy. Simple guide to save income tax.

Disclaimer: The information on the site is to be used only as a resource. Nothing published on this site should be considered as investment advice.  I advise users to check with certified experts before taking any investment decision. I do not guarantee the accuracy, adequacy or completeness of any information and am not responsible for any errors or omissions or for the results obtained from the use of such information. You are solely responsible for making your own investment decisions.

Know your taxes – Income Tax Calculator 2007-2008

Its February, and March is nearby, and most of us salaried employees are going to be fazed by the term “INCOME TAX”. Well most of us really don’t know the real deal when it comes to computing tax, and I was no different, and this being the first year that I was under taxation, so I started some online research as to what and how much tax do we need to pay. So I found this pretty cool tax calculator made my Nithyanand. I’d like to thank this person for making this pretty useful utility. So for those who want to know how much are they going to be taxed, you can go over to the website and download the tax calculator from there. Its in Microsoft Excel format and you just need to fill in the details. It has some sheets in the bottom with first being instructions, which are quite detailed and I’m sure you won’t have much problem in using it. Don’t forget to configure the details on the bottom right in the IT 2007-08 sheet.

Get Nithya’s Tax Calculator http://www.ynithya.com/taxcalc/

Some important points regarding Income Tax for the financial year 2007-08:

Tax Rates
In India, Individual income tax is a progressive tax with three slabs.
* No income tax is applicable on all income up to Rs. 110,000 per year. (Rs. 145,000 for women and Rs. 195,000 for senior citizens)
* From 110,001 to 150,000 : 10% of amount greater than Rs. 110,000 (Lower limit Rs. 145,001 for women and 1,95,000 to senior citizens)
* From 150,001 to 250,000 : 20% of amount greater than Rs. 150,000 & less than Rs.2,50,00(Rs 4,000+20% above amount 1,50,000 for Individual, For women: Rs. 500+20% above Rs 1,50,000 & 20% on above amount 1,95,000 to 2,50,000 For senior citizens, the lower limit is Rs. 195,000)
* Above 250,000 : 30% of amount greater than Rs. 250,000 + Rs. 24,000 (Rs. 20,500 for women and Rs. 11,000 for senior citizens)

Education Cess
All taxes in India are subject to an education cess, which is 3% of the total tax payable.

Source: Wikipedia