How Does This Simple Income Tax Calculator Help Salaried Employees Understand Their Taxes?

Simple Income Tax Calculator for Salaried Employees

Here is a simple income tax calculator designed for salaried employees.

Thank you for the feedback. The restriction on the PPF limit has been removed. I am attaching the revised Tax Calculator.

Thanks,
Benny Thadathil

Hi Vinayak Patel, I am new here. Why is investment in long-term infrastructure bonds (up to ₹20,000) not considered in the calculation sheet?

Regards,
Vinayak Patel
HRD
[Phone Number Removed For Privacy Reasons]

Hi Benny, could you please confirm if the Children's Education Allowance (Rs. 100 per child per month) is being deducted from the Gross Salary in the calculator?

Thanks.

Hi Benny, thanks for this.

I have the following remarks.

Medical Insurance Premium Exemption

I just want to make sure how you have arrived at the limit of Rs. 40,000 under section 80D (Medical insurance premium). In my opinion, Rs. 35,000 is the maximum amount exempted here.

1. Rs. 15,000 towards premium paid for self and family.
2. Additional deduction of Rs. 15,000 for premium paid for parents. If parents are senior citizens, the deduction available is Rs. 20,000 instead of Rs. 15,000.

Hence, a salaried employee can claim a maximum exemption of Rs. 35,000 under section 80D. Exemption for Rs. 40,000 is available only in cases when the employee himself is a senior citizen (over 60 years of age), but generally in India, this is the retirement age of a salaried employee.

Exemption Under Section 80CCF

Exemption under section 80CCF for Rs. 20,000 is no longer available from F.Y. 2012-2013.

Rajiv Gandhi Equity Saving Scheme

Investment in the Rajiv Gandhi Equity Saving Scheme needs to be included; an exemption is available for 50% of the investment made up to Rs. 50,000 (this exemption is available for individuals having an annual income below 10 lakhs).

Also, an additional deduction (under section 80TTA) up to Rs. 10,000 per annum (towards bank interest received) needs to be updated.

Thanks

I'm new to this as I'm a fresher, but please clarify my doubts on this calculation. There are some other allowances that my company is giving, and they have told me that even these allowances are tax-exempt. I didn't find the appropriate cells to fill in these forms in the document you have provided. So, I entered these details in the other allowances section. The problem I am facing is that these allowances are not being deducted in the calculations that you have done. Could you please fix this up?!

Thanks!

Regards, Rahul.

How much data can we enter in this, and how do we use it? Do we need to generate a separate sheet for each employee, or will the same sheet allow us to update and append data for other employees as well?