GConnect Income Tax calculator 2016-17 (Assessment Year 2017-18) – calculate Taxable Income and Income Tax and plan for Tax savings
Central government employees have their basic pay increase this year consequent on implementation of 7th Pay commission. Increase in allowances is also expected at any time during this financial year.
However, there is no increase in the income tax exemption limit and income tax structure this year (Financial year 2016-17 and assessment year 2017-18) compared to last year.
These factors call for special attention in the Income Tax front this year. Earlier tax planning might help to tackle this situation to some extent.
As in the previous years, GConnect Income Tax calculator 2016-17 (Assessment Year 2017-18) launched now, will be handy for Income tax Planning purposes.
So, why you are waiting any more? Have hands on experience with this online tool and get to save your Income tax as much as possible.
The following table gives you the information on opportunity for maximum Income tax savings in the case of Salary Income by way of availing various income tax exemption and deductions allowed.
|Type of Income Tax Exemption and deduction||Deduction from Salary Income|
|Section 80C Deductions (PF savings, NPS subscription, investment in tax saving mutual funds etc.||Up to Rs. 1,50,000|
|Additional NPS contribution – deduction allowed under Sec 80CCD (1A)||Up to Rs. 50,000|
|Deductions allowed for Housing Loan Interest under Section 24 in the case of self occupied property **||Up to Rs. 2,00,000 **|
|Medical Insurance under Section 80D||Up to Rs. 50,000|
|Transport Allowance allowed to be deducted under Section 10||Up to Rs. 19,200|
|Rebate of Income Tax up to Rs. 5,000/- if Taxable Income is not more than Rs. 5 lakh under Section 87A||Up to Rs. 50,000|
|Total Income Tax Exemption and Deduction *||Up to Rs. 5,19,200 *|
* This table does not include Income Tax Exemption in respect of HRA, and deductions under Section 80E (deductions for Education Loan), Section 80 (meant for physical disability for self), Section 80 GG (deduction of rent paid when no HRA is paid), Section 80 DD (medical treatment cost of person with disability), Section 80GGc, 80GGA and 80G (Deduction for donation)
** This does not include addtional deduction allowed up to Rs. 50,000 in respect of Housing Loan up to Rs. 35 lakh obtained in the year 2015-16
This table does not include deductions for purpose under Section 80E (deductions for Education Loan), Section 80 (meant for physical disability for self), Section 80 GG (deduction of rent paid when no HRA is paid), Section 80 DD (medical treatment cost of person with disability), Section 80GGc, 80GGA and 80G (Deduction for donation)
How to use GConnect Income Tax calculator 2016-17 (Income Assessment Year 2017-18)
This online tool has three parts. 1. Entry Form, 2. Work Sheet and 3. Income Tax Statement
1. Entry Form
a) Click the Tabs titled as Income, Deductions, Savings, and House loan interest deduction to enter your income and deduction details. After filling up fields relevant to you click ‘Calculate IT’ button. Now all your income, deduction and Income tax details are filled up in the Income Tax work sheet.
b) Point your mouse in the description of Fields (Description that are blue in colour) for detailed explanations in respect of concerned income or deduction.
2. Income Tax Work Sheet:
Income Tax Work sheet which is generated after filling up all income and deduction details and clicking “calculate IT” button contains the following tabs
1. Month wise salary income,
2. One time income such as bonus etc., (Income Others)
3. HRA Exemption and TA Exemption
4. Summary of Deductions allowed under Section 10 and Chapter VIA
5. Section 80C, CCC, CCD savings
6. Gross Taxable Income
7. Taxable Income
8. Balance Income Tax Payable.
3. Income Tax Statement
Check the Income Tax Work Sheet by navigating to all these tabs. Once you have ensured that Income and Tax calculated are correct, click ‘Generate Statement’ Button to get Income Tax Statement along with Work Sheet (in 4 pages). Use “Print Statement” Button in the Statement page to get the same printed.
As far as Salary Income is concerned, this tool gets the monthly value of each type of income in the entry form. This value is used for preparing month wise salary income for the entire year in the Work Sheet.
Note: As Revision of Pay after 7th Pay Commission implementation has been done from August 2016, Pay in pay band and grade pay entered will be used to calculate your salary from March 2016 to July 2016. Like wise, 7th cpc pay entered will be used for Salary from August 2016 to March 2016.
As there is no change in allowances so far values for Transport allowance, HRA etc are taken for calculating Salary throughout the year. In case of change in pay or any other allowances, in the middle of the year due to revision of allowances on 7cpc implementation, promotion, MACP, transfer etc same can be entered in the work sheet in the respective months.
In other words, you can modify all the individual fields in the work sheet to calculate revised tax. The revised tax will be calculated once you click out of the field you modified.