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More Tax this year:
As promised last month, the GConnect online Income Tax Calculator with save option is launched today. We mentioned in our previous article (Should we pay more income tax this year?) that salary of a Central Government Employee as on July 2012 has increased at least 20% over the salary that he/she received in the month of June-2011 due to increase in the dearness allowance and annual increment. However, there is no substantial increase in the Income tax slab. Consequently we will end up paying more income tax than last year.
Under this circumstances it becomes imperative to estimate our tax liability for this financial year as early as possible so that whatever income tax we need to pay, we can pay the same in small installments right from now. Also we can find out exemptions that we could get out of prudent tax planning in the earlier stage of this year so that we can plan for the same..
Uses of GConnect Online Income tax Calculator with save option:
- We have discussed various options that are available under Chapter VIA of Income Tax Act for saving Income tax in the GConnect Income Tax Calculator itself. Just move your mouse over the the relevant deduction under Chapter VI A. The tool tip containing full details of the relevant deduction would be provided in a box that appears once you move your mouse over all deductions.
- Further, Income tax department’s detailed write-up available for the relevant deduction under Chapter VIA, Income/loss on house property, HRA exemption, Agricultural income exemptions, Deductions under Section 80C, Tax treatment of NPS contribution by employer and employer etc can be downloaded then and there by clicking on the link provided for the same in GConnect income tax calculator
- For easy user experience, this time GConnect has launched GConnect Income Tax Calculator with save option ahead of Income Tax calculator without save option. This login version for saving income and deduction details of users who intend to save those details, would avoid repetitive data entry. Gathering all details of income and deduction at one point of time may not be possible. So whatever details you get can be entered in this tool and saved for later use. When you get all the details of your income and deduction, you have your income tax statement ready for submission to your employer. For example you know what is your salary as on March 2012, GPF deduction, LIC premium etc but you do not know how much is principal portion and interest poriton of Housing Loan EMI you are paying and how much is the premium for Health Insurance you have planned to take this year. GConnect income tax calculator with save option would be a fitting tool for this situation. Login in to the tool and enter the details you have in your hand now and save those for future use. Once you get the other details enter those also for getting the final income tax statement.
GConnect Income tax Calculator for tax planning:
This tool would be also much useful for tax planning. For example you can estimate the final income tax liability by entering actual amount of your salary and notional value for each item of savings and deduction. By this method the optimum amount of savings/investment/expenses to be made for a particular deduction for paying minimum income tax can easily be calculated.
New features in GConnect Income Tax Calculator 2012-13
We are fine-tuning this tool each year, and as usual new features added this year are:
1. Income Tax calculator for all years: There is no need for switching over to income tax calculator for previous years when you want check up the detail of your previous year’s income, deductions, tax paid etc. This new version has the provision to switch over to online tool for previous years without making any additional login. Just select the year for which to need to calculate or want to see the saved values, using the drop-down menu provided on the top of the tool.
2. Now you can calculate income or loss on house property in the Income Tax calculator itself instead of of using a separate calculator provided by GConnect for this purpose. This feature was long awaited by many of the users as they wanted to save details of their house property such as income earned out of house property, annual property tax amount, Interest paid on property etc in the GConnect online income tax calculator tool itself as these details form part of our income and deductions each year. Now, we have made suitable provisions for saving these values also.