Income Tax Department

House Rent Allowance Calculator​

​House rent allowance received by an employee is taxable. However exemption is available under section 10(13A). The exemption is based on certain set of conditions.

Exemption for House rent allow​ance is regulated by rule 2A. The least of the following is exemption from tax:

    a.   an amount equal to 50 per cent of salary, where the residential house is situated at Bombay, Calcutta, Delhi or Madras and an amount equal to 40 per cent of salary where the residential house is situated at any other place;

    b.   house rent allowance received by the employee in respect of the period during which the rental accommodation is occupied by the employee during the previous year; or

     c.   the excess of rent paid over 10 per cent of salary.

The taxable HRA is a part of income from salaries. While filing Income-tax return, the same should be shown under the income from salary.​

​​Income and ​Tax Calculator​

​​Section 80C to 80U provides certain deductions which can be claimed from Gross Total Income (GTI). After claiming these deductions from GTI, the income remaining is called as  Total Income. In other words, GTI less Deductions (under section 80C to 80U) = Total Income (TI). Total income can also be understood as taxable income. Following table gives a better understanding of the difference between GTI and TI :

Computation of gross total income and Taxable Income

Note : Inter source losses, inter head losses, brought forward losses, unabsorbed depreciation, etc., (if any) will have to be adjusted (as per the Income-tax Law) while computing the gross total income. ​

Click here to view the detailed document on Treatment of Income from Different Sources

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​Deferred Tax Calculator

Deferred Tax is the tax effects of Timing Difference. The whole concept of deferred tax is depend on timing difference. Before proceeding further we need to understand the meaning of Accounting Income and Taxable Income.

Accounting income (loss) is the net profit or loss for a period, as reported in the statement of profit and loss, before deducting income tax expense or adding income tax saving.

Taxable income (tax loss) is the amount of the income (loss) for a period, determined in accordance with the tax laws, based upon which income tax payable (recoverable) is determined.

As per AS-22 Timing differences are the differences between taxable income and accounting income for a period that originate in one period and are capable of reversal in one or more subsequent periods.

In Simple words, Timing Difference is those items of Expense/Income which creates difference between Accounting Income and taxable Income of a period and subsequent period.

​​Tax Calculator​

After ascertaining the total income, i.e., income liable to tax, the next step is to compute the tax liability for the year. Tax liability is to be computed by applying the rates prescribed in this regard. For rates of tax, refer "Tax Rate" section. Following table will help in understanding the manner of computation of the total tax liability of the taxpayer.

Computation of total income and tax liability for the year

(*) Rebate under sections 90, 90A and 91 is available to a taxpayer in respect of double taxed income, i.e., income which is taxed in India as well as abroad.

Note : For provisions relating to Minimum Alternate Tax (MAT) in case of corporate taxpayers refer tutorial on "MAT/AMT".

Click here to view prevalent tax rates