How to Calculate Income tax for Salaried Individuals (Download Excel)

For years, I’ve been running behind my friends to get my income tax calculation done.

To be honest, I had never taken pains to cross-check whether my friend did it right or not. The main reason ,” I thought it is complicated!”

Here’s a simple fix!

The Income Tax Calculation

Income Tax = 10% or 20% or 30% of your Total Taxable Income

Your Total Taxable Income = Total yearly income – Tax exemption on Salary Components – Tax exemption on Investments

The following calculator helps you to calculate your income tax in minutes.

Please note that this calculator best suits salaried individuals

Income tax calculator 2015-2016

Download Now (₹50)

Note: This income tax calculation sheet best suits for salaried individuals.

How to Use the Income Tax Calculator Sheet

Step 1: Keep your latest payslip handy!

Your payslip is the key thing for your Income Tax calculation. Grab your latest payslip, and keep it opened

Step 2: Keep all your investment details handy!

Rent receipts, Fixed deposits, Policy premiums, or whatever, save all of these in a folder or repository where you could easily access from anywhere. You would need to enter the data in the excel sheet that you are going to download in the next step

Step 3: Have all the medical bills for this year beside your computer!

Medical exemption is available upto INR 15000 for a year. If you fail to declare, this amount becomes taxable, and you might want to pay tax for INR 15000.

Step 4: Open the Excel Sheet, and start entering your details!

The Excel sheet is a IT calculator which calculates your income tax in minutes, all you need to do is just enter your salary details in the excel sheet.

FAQs

How to save tax other than 80c?

Section 80C covers almost all the investments for individuals. You may use Section 80D to exempt the interest on your housing loan.

Is it worth paying income tax India?

To be honest, it is our responsibility to pay income tax to our country. The country does a lot to us, come on.

Does this income tax calculator immediately calculates my income tax ?

Yes, it does.

Who can use this calculator?

This income tax calculation sheet is for all salaried individuals in India. Best suits IT professionals.

Related: 3 Things I wish I had known before withdrawing my PF or EPF

Prabha is a User Interface Designer (Software design) + Entrepreneur, and a passionate home organiser. She was a spendthrift until she came across the book 'Millionaire next door'. In fact, this (the book) was her turning point towards frugality and financial freedom. Read more

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10 comments

    nice calculator.. very useful.. but is there any calculator for small business people who’s annual income is around 5 lakhs.

    Hi Prabha,
    Greetings..

    Thanks for your valuable service… i had a query regarding IT calculator as where can i enter School fee details?
    And request you to update the same and if possible new features.

    Thank you,
    Mahender

    The Tuition fee comes under Section 80C which has a maximum limit of 1,50,000 Rs. There is no separate exemption available so far

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