The much awaited Tax Calculator for financial year 2010-11 has been released by ynithya on his site. Feel free to download the same and use for better planning of your hard earned money. I have been using his tax calculator which is in the form of Microsoft Excel (xls) for over 3 years now and I must admit, this is one of the best ways to keep track of your tax liability. You can make appropriate adjustments towards investments to save the max on tax! Instead of cribbing about tax planning later in the financial year, it is better to start now and make wise investments.
The tax calculator has been very illustrative with various components of your salary like Basic, HRA, Professional tax, Conveyance etc., It automatically calculates the PF and takes into consideration for rebate under section 80C. Also if you have opted for VPF even that will be consider. Best part of this tax calculator is that you can enter HRA/Home loan, Insurance, Mutual funds, Infrastructure bond etc., details in appropriate places, it adjusts your tax amount accordingly and there by with a monthly break up. If tax is getting deducted at source, you have an option to mention that as well for the calculation purpose and change the remaining number of months for TDS deduction.
With the help of this tax calculator, you upfront know what all you investments you need to focus on. If you are living in a Metro city, you can update that information too to avail 50% of basic towards HRA. Just to let you folks know, apart from regular 1 lac deduction u/s 80C, there is a provision to invest another 20k in infrastructure bonds. So, you can make a max of 1.2k exemption from income under section 80C. Go ahead plan your systematic investments right away and you don’t need to feel the urgency towards the end of the financial year. You can download the tax calculator here.
This tax calculator can be used for tax planning to calculate the approximate tax payable by salaried individuals. This should NOT be used to compute the actual taxes to be paid to the Government. The author/publisher is not responsible for any inaccuracies in the tax computed by this calculator. If you find any inconsistency/inaccuracy, please do let the author know at the earliest.