View Full Version : Income tax calculation tool

11-10-2013, 03:42 PM
It is seen from the IT calculator that rebate of Rs. 2000 (for income less than Rs. 5,00,000) is deducted from total of net Income tax + Education cess. For ex: IT 11461 + EC 344 - 2000 = 9805. This seems to be quite confusing since the amount of IT and EC has to be compiled separately while accounting the same in Govt Depts. Will it not be correct if the rebate of Rs. 2000 is deducted from IT and then on the balance EC is worked out. Viz: 11461 - 2000 = 9461 + 3% EC 284 = 9745. This needs urgent clarification as provisional IT statement has to be submitted by 31st October.:confused:

15-10-2013, 03:16 PM
your query sounds logical, but Section 87A provides for only Rs.2000 as rebate at the maximum. As per your calculation rebate would exceed Rs.2000/- in the case of taxable income exceeds Rs.220000/-. We feel that rebate has to be deducted from the total income tax payable i.e (IT+EC)- Rebate

GConnect Team

21-10-2013, 11:22 AM
if i go here, http://law.incometaxindia.gov.in/DIT/Xtras/taxcalc.aspx i get the cess on the tax payable after deducting 2000. For example, my taxable income is 492074 and the tax payable is 28023 with Cess.

21-10-2013, 02:32 PM
1.My query has in fact been addressed to by tax calculator of Income Tax Dept. The cess is worked out only after deducting 2000 from the IT payable. It is therefore suggested that the IT tool of Gconnect be rectified accordingly.
2.The IT relief calculator may please be updated so as to calculate relief for the previous financial years upto and including 2012-13 and for 2013-14

22-10-2013, 01:08 PM
As suggested by our member dad, GConnect IT tool has been corrected now. We thank dad and venkatcustoms for pointing out this issue