Innovation In Taxation

Income Tax Calculator (ITC)

Designed & Developed By Dhanya Kumar KV

Note: This app doesn't record or store your data remotely, so feel free to play with this app without any worries.

ITC Goal:- Majority of tax payers should feel - Proud to be a taxpayer; I pay less tax compared to existing & new tax regime.

Click here for existing & new tax regime calculator. Click here for KPMG’s individual income tax rates around the world.

According to Economic Times article, 5.5 crore people filed tax returns in 2018-19, 3.3 crore are taxpayers i.e. 2.5% of 134 crore population. ITC aims to bring 25% of the population under taxation i.e. 33 crore citizens may be eligible for taxation.

Multi-level tax slabs (0 - 35), 11 cess types and maximum of 35% tax on income. This ITC can also be used for domestic companies income tax.

Constituency Development and Modernization (CDM) fund should be equally allocated to elected MPs for development and modernization of their constituency. This initiative is called Smart Constituencies Mission (SCM) programme. CDM fund should not be used to promote any religion and/or caste.

Tax deductions like PF, PPF, SSY and NPS are not eligible for income below ONE crore.

Women (35Y-50Y age) with 0, 1 or 2-child (boy & girl) gets R3 upto ₹5,000 per annum for 5 years. This is to encourage Population Control in India.

Educated unemployed citizens with marital status 'Single' and age between 23Y and 28Y gets upto ₹10,000 per year. Age, Highest Education & Percentage Obtained decides the R3 amount for Educated Unemployed. This is NOT a perfect solution to unemployment problem in India but to encourage higher education and reduce college dropouts.

Sr. Citizen (Retired Or Unemployed): Age 55 and above, no tax for income below 5 lakh.

Foreign income is added to total income if the expatriate lived abroad for less than 181 days otherwise EOI cess applicable on funds transfered to bank accounts in India.

Tax Deducted at Source (TDS) is deducted at Bank not by employer. It's similar to Pay-As-You-Go model, so take-home pay is higher during Summer & Monsoon seasons when compared to Winter season. Benefits - promotes family tourism during summer holidays, more money in pocket to pay school/college admission fee and for agricultural investments.

Centralized Income TAx Ledger System (citals) exposes APIs to banking, passport, govt saving schemes, PAN, rent/lease agreement and aadhar systems to collect the information and pre-populate ITC fields.

Authorized Tax Return Reviewers (ATRR) table aims to create thousands of job opportunities for B.Com and CA graduates. Marc Andreessen famously said that “Software is eating the world”. Govt should it. We need software to reduce human errors, prevent corruption & help us in AI/ML, not to eat our jobs.

Surcharge (Z) is to recover the loss due to vandalism, lockdown and/or to meet next-year tax-revenue target set by Minister of Finance of India. People expect a lot from budget session so it's better to announce the Surcharge Chart in April 2nd week.

Sushma Swaraj Pension Yojana (SSPY) aka Small Savings & Pension Yojana (SSPY) is applicable for tax payers whose annual total income is below 3 lakh. The SSPY fund is built with monetary contribution extended by tax payer and the Govt (upto ₹6000). SSPY benefits: The fund thus built accrues a 9% rate of interest. Govt Contribution to SSPY account is calculated using the formula:

Govt Contribution Amount = minimum(maximum(1200,2 x (tax liability)), 6000) - (extra cess amount)

Govt contribution is applicable only if the tax payer has contributed a minimum of ₹1200 to his/her SSPY account in previous calendar year. Govt contribution to SSPY account not applicable for Sr. citizens (Age 60 and above). SSPY account can be converted into APY account when the tax payer becomes Sr. Citizen (Age 60 and above) and SSPY corpus amount is more than ₹1.7 lakh. Tax payer can either choose Low Income Rebate or Govt contribution to SSPY account.

Finally, Pay Attention To Percentage Of Your Total Income Paid To Income Tax Department, Govt Of India. I tried my best to balance the interest of tax payers and tax revenue. I hope Government Of India welcomes Innovation In Taxation. Thank You.

Income & Other Details

  • Birth Year
  • Gender
  • Marital Status
  • Number Of Childrens
  • Education
  • Percentage Obtained
  • Income from Salary
  • Income from Bank Interest
  • Income from House Property
  • Capital Gains
  • Income from Dividends
  • Income and Gains Of Business or Profession
  • Agriculture Income
  • Winnings from Lottery, Puzzles, Competition etc
  • Income From Other Sources
  • Expats Income In Rupees (Year-)
  • Duration Of Stay Abroad during
  • Last Year Taxable Amount (Year )

Investments, Expenses & Other Details

  • Annual House Rent Paid
  • Home Loan Interest Paid (Max ₹)
  • Education Loan Interest Paid (Max ₹)
  • Contribution to Govt Donation Drives
  • Atal Pension Yojana (APY)
  • National Pension Scheme (NPS)
  • Sukanya Samriddhi Yojana (SSY)
  • Public Provident Fund (PPF)
  • Provident Fund (PF)
  • Eco-Friendly Investments
  • Tax Return Reviewer Fee (Max ₹0)
  • Tax Return Reviewer PAN

Tax Percentage Class :

Your tax liability ₹ is % of your total income.
A Total Income In India
B Total Overseas Income
C Total Income (A or A+B)
D Total Deductions
E Taxable Amount
F Standard Tax On (E) @ %
G Total Cess On (E) @ %
H Total Cess On (B) @ %

Rebate / Reward / Refund (R3)

I Low Income
J Educated Unemployed
K Population Control
L 100K+ Growth
M Sr. Citizen (Retired or Unemployed)
N Eco-Friendly Taxpayer

Standard Cess'

O Border Security & Control (BSC)
P Natural Disaster Assistance (NDA)
Q Sewage Treatment & Air Purification (SAP)
R Highways, Airport & Train (HAT) connectivity
S External Debt Of India (EDI)
T Constituency Development and Modernization (CDM)
U Jai Jawan, Jai Kisan (J3K)
V Health & Education (HAE)
W Scientific Research & Development (SRD)
X Embassy Of India (EOI) - Services & Assistance
Y Clean Energy & Swach Bharat (CSB)

Surcharge

Z Additional Surcharge

Authorized Tax Return Reviewer (ATRR)

Prepares and reviews tax returns for individuals and businesses.

Income Self B.Com/ CA-CPT CA-IPC CA
Bank Interest & Salary Income (BISI) Only. No Limit.
Below 5 lakh
5 to 36 lakh
36 lakh to 1 crore
Above 1 crore