Tax deduction calculator

Some of the investments you make and expenses you incur in a year are eligible for tax deduction. Use this worksheet to find how much deduction you can claim.

     Print Edition: February, 2010

Some of the investments you make and expenses you incur in a year are eligible for tax deduction. Use this worksheet to find how much deduction you can claim.

1. Investment and expenses under section 80C
Investment/ExpenseMonthly

Annual

EMPLOYEE PROVIDENT FUND
  
FAMILY PENSION FUND
  
PUBLIC PROVIDENT FUND
  
SENIOR CITIZENS' SAVINGS SCHEME
  
NATIONAL SAVINGS CERTIFICATES
a)
  
b)
  
c)
  
FIVE-YEAR FIXED DEPOSITS
a)
  
b)
  
c)
  
EQUITY-LINKED SAVINGS SCHEMES
a)
  
b)
  
c)
  
LIFE INSURANCE
a)
  
b)
  
c)
  
ULIPS
a)
  
b)
  
c)
  
PENSION PLAN
  
HOUSING LOAN REPAYMENT
  
TUITION FEES OF CHILDREN (MAXIMUM TWO)
a)
  
b)
  
TOTAL (MAXIMUM RS 1 LAKH)
  
Some of these payments would be monthly while others might be annual. You must fill the annual figure.
2. House rent under section 10 (13A)
Least of the following:
Annual
HOUSE RENT ALLOWANCE RECEIVED
 
50 PER CENT OF BASIC SALARY (40 PER CENT IN NON-METROS)
 
ACTUAL RENT PAID, LESS 10 PER CENT BASIC SALARY
 
TOTAL
 
3. Medical expenses under sections 80D, 80DDB and 80U
MEDICAL INSURANCE
a) For self and family
 
b) For parents
 
SUFFERING FROM DISABILITY (SELF)
50,000
MAINTENANCE OF DISABLED DEPENDANT
50,000
MAINTENANCE OF DEPENDANT WITH SPECIFIED ILLNESS
40,000
TOTAL
 
4. Loan repayment under sections 80E and 24(B)
INTEREST PAID ON LOAN
a) EDUCATION LOAN
 
b) HOUSING LOAN
 
TOTAL
 
5. Contributions under sections 80G and 80GGC
DONATIONS TO ELIGIBLE ORGANISATIONS
a)
 
b)
 
CONTRIBUTION TO A RECOGNISED POLITICAL PARTY
 
TOTAL
 
GRAND TOTAL (ADD THE TOTAL DEDUCTIONS OF ALL FIVE SECTIONS)
 

Taking note

  • The premiums paid for life insurance policies for self, spouse or children are eligible for deduction under Section 80C.
  • Medical insurance premium for self and family is deductible up to Rs 15,000 a year. If the taxpayer is a senior citizen, the deduction is Rs 20,000.
  • If one pays for the medical insurance of parents, one can claim an additional deduction of up to Rs 15,000. If they are senior citizens, the deduction is up to Rs 20,000.
  • Irrespective of the amount spent on a disabled or an ill person, deduction is available under Sections 80DD, 80DDB and 80U.
  • In case of severe disability, the deduction is higher. If the sick dependant is a senior citizen, the deduction is Rs 60,000 under Section 80DDB.
  • Only Rs 1.5 lakh of the interest paid on a housing loan is deductible in a year if the house is self-occupied.
  • In case the house is rented, there is no limit on the deduction for the interest paid on the loan.
  • In case one does not get house rent allowance but pays rent, one can claim deduction of up to Rs 2,000 a month under Section 80GG.
  • Interest paid on an education loan is deductible only if it is taken for full-time education in a recognised institution based in India.
  • The deduction for the interest paid on education loan under Section 80E can be availed of for eight years from the year of starting the repayment.

The tax equation
Your Gross Income – Deductions = Your taxable income

Once you have calculated the total deduction available to you, subtract this sum from your gross income. The income should include the following:

  • Income from salary
  • Income from business or profession
  • Short-term capital gains (except from equity, equity funds)
  • Rental income
  • Interest income
  • Income from other sources
Male Taxpayers
Annual net taxable income (Rs)
Tax (Rs)
As per cent of net taxable income
3,00,000
14,000
7
5,00,000
54,000
10.8
8,00,000
1,44,000
18
12,00,000
2,64,000
22
Female Taxpayers
Annual net taxable income (Rs)
Tax (Rs)
As per cent of net taxable income
3,00,000
11,000
5.5
5,00,000
51,000
10.2
8,00,000
1,41,000
17.6
12,00,000
2,61,000
21.75
Senior Citizens (above 65 yrs)
Annual net taxable income (Rs) Tax (Rs)
As per cent of net taxable income
3,00,000
6,000
2
5,00,000
46,000
9.2
8,00,000
1,36,000
17
12,00,000
2,56,000
21.33

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close