Article contains Income tax calculator for salaried employees for Financial Year (F.Y.) 2020-21 or Assessment Year (A.Y.) 2021-22 in Excel Format.
As we begin the new financial year, there was a demand for extension of FY 2019-20 to June 30, 2020, owing to the COVID – 19 outbreaks. However, the Government has not announced any changes, which aptly reminds us of Sir Benjamin Franklin’s famous words, “Only two things are certain in life, death and taxes.” During this lock down period, those who have amassed wealth for their future generations and those who earn their livelihood on a daily basis have come to a common ground. Though the world is open for everyone to live with their own choices, in today scenario, no one can walk freely as they wish. We all have different options to live here, however it is our choice to choose the way our life. As Bible reminds all have to be wise and prudent in selecting their choices. In the example of ten virgins – Five of them took their lamps, and took no oil with them, other five took oil in their vessels with their lamps. It simply indicates, be vigilant in selecting your choices. “Therefore keep watch, because you do not know the day or the hour”.
Through the Finance Bill 2020, Hon’ble finance minister Smt. Nirmala Sitharaman introduced a new taxation structure in India, Option A, Live today! lower tax rates for those who don’t want to have tax saving plans, and giving more cash flows to their hands. On the other side, option B, with higher tax rates for those who have tax saving plans. This make you to take the call on your own taxation. While Option A looks nice and easier, is this giving a lower tax benefit? Tax payers have to be more cautious and practical in selecting their choices.
Wishing you a smart and successful Financial Year and a Prudent tax planning!
Salient features of Income tax calculator for salaried employees- F.Y. 2020-21
1. Useful for the salaried employees of government and private sector.
2. Private sector employees can use their Flexi allocation option and link it to the tax planning.
3. Tax and rebate/deduction calculation for all type if income including agriculture income, to arrive at the annual tax liability.
4. Marginal relief on surcharge, where income crosses the prescribed limits.
5. Automated HRA exemption/Sec 80GG deduction calculation based on the salary and rent payments.
6. Validation on the limits of Chapter VI A deduction, Housing loan interest set off.
7. Best tax regime suggestion for the tax payers.
8. Highlights of tax changes when the taxable income crosses 50 Lakh/1 Crore.
How do you select the tax regime/method?
New tax regime is simple; Tax rates are lower than the old regime. This is a better option for those who do not have tax plans, not paying rent or not having any housing loans.
The Old tax regime can be used for all those have tax saving investments, pay rent, have housing loans and so on.
It is Interesting that the National pension scheme contribution through employer is deductible under both the regime. A tax free, long term, investments.
However, suggest for you to check the better option before taking a final decision on the tax method/regime. Do check which exemptions and deductions you are eligible for. Then do the calculations on whether your tax liability will be lower in the new regime or the old one.
When do you select the option? Income tax act allows you time till your personal tax return filing in 2022, however you will have to communicate your option to the employer in April/May, the same can be changed before they finalise the tax plans with the actual proof validation before the financial year closure.
Ronald Reagan said “The taxpayer: that’s someone who works for the federal government, but doesn’t have to take a civil service examination”.
Be a proud tax payer.
Author Bio
wrong formulas. Please upload correct sheet.
new regime formulas are incorrect
Binney Sir, Form 16 Format Last year extra attached file, current year not available. viren.doshi@steelsmith.co.in
sir, Form 16 Format Last year extra attached file, current year not available
Pls share income tax calculator for salaried person in excel for FY 2021-2022
please send me excel for income from salary and salary calculation for F.Y. 2020-21
supriya.mohite@rrcventures.com
Benny sir, Plz attach Form-16 tab in the calculation sheet and mail me dg.pankaj@gmail.com
Your sheet is helpful for our Govt. sector
Hi Benny.. I think the New regime formulas are not properly linked. If you add any amount in income from other sources it does not take it into account.
Please add Form-16 tab too. Very useful
Sir, Tax rate is wrongly mentioned in slab..7.5 to 12 @15% instead of 7.5 to 10@15%. Please correct the tax working sheet.
Please mail excel sheet for it calculation on salary comparative under old & new tax regime
Thank you so much very helpful excel sheet.
Benny Chetta, Thanks a lot. Following from last fy onwards.
Dear Sir, As per last yer you have added Form16 part on excell sheet this year not available, If possible please be aded, This is help out all of us.
sir,
let me know the method of income tax calculation for year 2020-21.
please send me excel for income from salary and salary calculation. jaydeep.jnv@gmail.com
In this excel form 16 not included why ?
Please provide me the excel sheet calculating tds on salary automatically
amitrathva2@gmail.com
sir, Form 16 Format Last year extra attached file,current year not available
Please provide me the excel sheet calculating tds on salary automatically on
rajashreerutu@gmail.com
Please provide me the excel sheet calculating tds on salary automatically. On prashant.lanjewar74@gmai.com
Thank you so much for sharing excel sheet.
Thanks for all the help, by giving us this helpful excel sheet.
Thanks for sharing