Income Tax Computation

Base = 1,080,000
House Rent Allowance = 432,000
Leave Travel Allowance = 24,000
Special Allowance = 816,000
Provident Fund (Employer’s Contribution) = 21,600
Meal Allowance = 26,400
Bonus = 240,000
Gratuity = 51,948

Please help me with

  1. Tax calculation
  2. Inhand per month
  3. Simple investing techniques (We have bought a flat and my dad pays loan of 33k per month)

Hey @Shaggy

To calculate your tax liability, please refer to Quicko’s Income Tax Calculator. Here you can enter details about your income, deductions, exemptions and your tax liability will be calculated under both, old and the new regime.

Regarding the home loan, a deduction on interest on the home loan under section 80EEA can be claimed by the person who is paying it, in this case, your father. Read more about it here.

Alternatively, in case of further queries, feel free to write to us here

I have already went through above tool. It requires me to have good knowledge. Hence i do not feel above tool is usefull at all for people who do not want to involve themselves in these Calculations…

I will really appreciate it if you can tell me answers to below questions

  1. How much will i get inhand
  2. What can i do to reduce tax.

Hi @Shaggy,

We recommend you check with your employer regarding your take-home salary.
You can plan and make tax-saving investments and payments during the year to optimize your tax liability.

Check out this video to help you understand and plan your taxes

Hope this helps :slight_smile:

1 Like

This was helpful. Thanks

1 Like

I above calculator where should i enter special allowance?

Hey @Shaggy,

You can add other allowances under Income Details > Salary Income > Other Taxable Allowances in the Income Tax Calculator.

My STCG is 4,19,500
My intraday profit is : 1,27,500
Contribution to PPF : 1,70,000

could someone please help me know my tax liability??

Hey @Vinay_Sharma, you could calculate your tax liability using the following tool:

How do someone calculate tax for incomes from mutual funds only (and not direct stocks)?

There are Equity/Debt, and both have Growth/Dividend. If I have 1/2 funds of all these types, how will it be calculated?

Is it for profits only? Or, is it for loss as well? Will tax be -ve then?

Or is it for the sum of all, and not per individual schemes? What happens if sum is -ve?

What are the rates? Same as regular income slabs or different?

If I made some profit, but don’t redeem it, is it taxable?

Also, if I do redeem it and invest it immediately in a new one, will it still be taxable?

Is there any tax on dividend?

@AkashJhaveri @Laxmi_Navlani @Divya_Singhvi can you?

Hi @ztvusbqpvrco

Sales of Equity shares shall be taxable @15% if short term and @10% if long term. However, sale of debt funds shall be taxed at slab rates.

Tax shall be on profits only. Tax shall be levied on net profits only and tax cannot be -ve.

Unrealised profits cannot be taxed. However if you redeem it shall be taxable even if you invest the amount immediately.

Yes dividend received shall be taxable at slab rates from FY 2020-21.

1 Like

Thank you @Divya_Singhvi . Just 2 quick questions.

So there are the following options:

  1. Debt Short Term
  2. Debt Long Term
  3. Equity Short term
  4. Equity Long Term

So when you tax is on net profit only (I’m assuming it means total profit - total loss), do I calculate this across all 4 of these categories? Or, net only with debt short, or only within debt long, etc.?

And the link said loss can be carried forward for at most 8 years. I hope it doesn’t happen, but in case I am in the situation where one year’s loss is not adjusted by profit/loss in next 8 year, what are the rules for 9th year?

Hi @ztvusbqpvrco

The tax liability is based on the duration so the net shall be separate in the case of Short term debt and Equity and separate in the case of Long term Debt and Equity. However, you can setoff Long term capital gains against the short-term losses, not vice versa.

If the losses are not set off within the next 8 years they will lapse. For further clarification, you can refer to the below article.
Hope this helps :slightly_smiling_face:

It definitely helps a lot. Much appreciated :smile:

1 Like

What kind of taxes do Mutual funds pay? For example if a MF sells a equity holding do they pay STCG and LTCG?

Hi @d.r, this might help

My question is different. I am asking about any tax implication when a mutual fund sells a holding (do mutual funds pay STCG and LTCG when they sell any holding). What you’ve shared is about the tax implication of when someone sells a mutual fund unit.

@Kaushal_Soni @Sakshi_Shah1 @AkashJhaveri @Divya_Singhvi @Laxmi_Navlani @Saad_C can you help with this?

Hello @d.r,

As per section 10(23D) any income arising in the hands of a Mutual Fund (subject to conditions u/s 10(23D) of constitution of mutual fund being fulfilled) shall be exempt.

So, as per the above provisions, a mutual fund is not required to pay capital gain taxes when they transfer/sell any holding.

Hope it helps!