Apna Plan Income Tax Calculator 2019-20

Calculate your exact tax liability for FY 2019-20 with rebates and deductions

Module A: Introduction & Importance

The Apna Plan Income Tax Calculator 2019-20 is a sophisticated financial tool designed to help Indian taxpayers accurately compute their tax liability for the financial year 2019-2020. This calculator incorporates all the tax slabs, rebates, and deductions as per the Income Tax Act of 1961, including the significant changes introduced in Budget 2019.

Understanding your exact tax liability is crucial for several reasons:

1. Financial Planning: Helps in budgeting your finances by knowing your exact tax outgo
2. Tax Saving: Identifies opportunities to reduce tax burden through legitimate deductions
3. Compliance: Ensures you meet all legal requirements and avoid penalties
4. Investment Decisions: Guides your investment choices based on tax implications
5. Rebate Utilization: Helps maximize benefits from Section 87A rebate (up to ₹12,500 for income ≤ ₹5 lakh)

Module B: How to Use This Calculator

Follow these step-by-step instructions to get accurate tax calculations:

1. Enter Annual Income: Input your total annual income from all sources (salary, business, capital gains, etc.)
   • Include basic salary, allowances, bonuses, and perquisites
   • Exclude any income that’s already tax-exempt (like LTA, medical reimbursements up to limits)
2. Select Age Group: Choose your age category as it affects tax slabs:
   • Below 60 years (standard slabs)
   • 60-80 years (higher basic exemption limit of ₹3,00,000)
   • Above 80 years (highest exemption limit of ₹5,00,000)
3. Choose Tax Regime: Select between:
   • Old Regime: Allows deductions under Sections 80C, 80D, HRA, etc.
   • New Regime: Lower tax rates but no deductions (introduced in Budget 2020 but optional for FY 2019-20)
4. Enter Deductions: Input total eligible deductions:
   • Section 80C: Up to ₹1,50,000 (PF, LIC, ELSS, etc.)
   • Section 80D: Medical insurance premiums (up to ₹25,000 for self, ₹50,000 for seniors)
   • Section 24: Home loan interest (up to ₹2,00,000)
   • Other deductions under Chapter VI-A
5. HRA Details: For House Rent Allowance calculation:
   • Enter annual HRA received from employer
   • Enter annual rent paid (for actual HRA exemption calculation)
6. View Results: Click “Calculate Tax” to see detailed breakdown including taxable income, tax payable, surcharge, cess, and effective tax rate

Module C: Formula & Methodology

Our calculator uses the exact methodology prescribed by the Income Tax Department for FY 2019-20 (AY 2020-21). Here’s the detailed calculation process:

1. Gross Total Income Calculation

GTI = Income from Salary + Income from House Property + Income from Business/Profession + Capital Gains + Income from Other Sources

2. Deductions Under Chapter VI-A

Total Deductions = Sum of all eligible deductions under Sections 80C to 80U

3. Taxable Income

Taxable Income = Gross Total Income – Total Deductions – HRA Exemption – Other Exemptions

4. HRA Exemption Calculation (Minimum of):

1. Actual HRA received
2. 50% of salary (for metro cities) or 40% (for non-metros)
3. Actual rent paid minus 10% of salary

5. Tax Calculation (Old Regime)

Income Range	Below 60	60-80 years	Above 80
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5%	Nil	Nil
₹5,00,001 to ₹10,00,000	20%	20%	Nil
Above ₹10,00,000	30%

6. Surcharge (Old Regime)

Total Income	Surcharge Rate
₹50,00,001 to ₹1,00,00,000	10%
Above ₹1,00,00,000	15%

7. Health & Education Cess

4% of (Income Tax + Surcharge)

8. Rebate Under Section 87A

₹12,500 or 100% of tax (whichever is lower) for taxable income ≤ ₹5,00,000

Module D: Real-World Examples

Case Study 1: Salaried Individual (Below 60, Old Regime)

• Annual Income: ₹9,50,000
• Age: 35 years
• Deductions: ₹1,50,000 (80C) + ₹25,000 (80D) = ₹1,75,000
• HRA: ₹2,40,000 (₹20,000/month)
• Rent: ₹2,16,000 (₹18,000/month in Delhi)

Calculation:

1. HRA Exemption: min(2,40,000; 50% of 7,20,000=3,60,000; 2,16,000-72,000=1,44,000) = ₹1,44,000
2. Taxable Income: 9,50,000 – 1,75,000 – 1,44,000 = ₹6,31,000
3. Tax: (2,50,000×0) + (2,50,000×5%) + (1,31,000×20%) = ₹36,200
4. Cess: 4% of 36,200 = ₹1,448
5. Total Tax: ₹37,648

Case Study 2: Senior Citizen (60-80, Old Regime)

• Annual Income: ₹7,20,000 (Pension + Interest)
• Age: 65 years
• Deductions: ₹1,50,000 (80C) + ₹50,000 (80D for seniors) = ₹2,00,000
• Interest Income: ₹80,000 (from FDs)

Calculation:

1. Taxable Income: 7,20,000 – 2,00,000 = ₹5,20,000
2. Tax: (3,00,000×0) + (2,20,000×20%) = ₹44,000
3. Rebate u/s 87A: ₹12,500 (since income ≤ ₹5,00,000)
4. Net Tax: ₹31,500
5. Cess: 4% of 31,500 = ₹1,260
6. Total Tax: ₹32,760

Case Study 3: High-Income Professional (New Regime)

• Annual Income: ₹18,50,000
• Age: 42 years
• Regime: New (no deductions)

Calculation:

1. Taxable Income: ₹18,50,000 (no deductions in new regime)
2. Tax: (2,50,000×0) + (2,50,000×5%) + (5,00,000×10%) + (8,50,000×15%) = ₹2,05,000
3. Surcharge: 10% of 2,05,000 = ₹20,500
4. Cess: 4% of (2,05,000 + 20,500) = ₹9,020
5. Total Tax: ₹2,34,520

Module E: Data & Statistics

Comparison of Tax Liability: Old vs New Regime (FY 2019-20)

Income Range	Old Regime Tax (₹)	New Regime Tax (₹)	Difference (₹)	Better Option
₹5,00,000	12,500	0	12,500	New
₹7,50,000	37,500	25,000	12,500	New
₹10,00,000	75,000	50,000	25,000	New
₹15,00,000	2,25,000	1,25,000	1,00,000	New
₹20,00,000	4,00,000	2,75,000	1,25,000	New

Tax Collection Statistics FY 2019-20

Category	Amount (₹ Crore)	Growth over FY18-19
Gross Direct Tax Collection	12,33,671	5.43%
Corporation Tax	5,56,363	-1.29%
Personal Income Tax	6,04,246	17.29%
Securities Transaction Tax	13,062	5.10%
Total Refunds	1,85,070	23.06%
Net Direct Tax Collection	10,48,601	0.84%

Source: Income Tax Department Annual Report 2019-20

Module F: Expert Tips

Maximizing Tax Savings in FY 2019-20

1. Optimize Section 80C:
   • Invest in ELSS funds (3-year lock-in) for potentially higher returns than traditional options
   • Combine PPF (₹1.5L limit) with 80C for long-term tax-free growth
   • Consider NSC (National Savings Certificate) for guaranteed returns
2. Leverage HRA Exemption:
   • If paying rent to parents, ensure proper rent agreement and payment proofs
   • For metro cities, 50% of salary is exempt (vs 40% for non-metros)
   • Include rent paid for office space if working from home
3. Medical Insurance Benefits:
   • Section 80D allows ₹25,000 for self/family, additional ₹25,000 for parents
   • For senior citizen parents, limit increases to ₹50,000
   • Preventive health check-up (₹5,000) included in 80D limit
4. Home Loan Advantages:
   • ₹2,00,000 deduction on interest (Section 24) for self-occupied property
   • ₹1,50,000 on principal (Section 80C)
   • First-time buyers get additional ₹50,000 under Section 80EE
5. Capital Gains Planning:
   • Use Section 54 to save LTCG tax by reinvesting in residential property
   • Section 54EC allows investment in specified bonds (₹50L limit)
   • Harvest losses to offset gains (tax-loss harvesting)

Common Mistakes to Avoid

• Ignoring Form 16 Details: Always verify TDS deducted matches your calculations
• Missing ITR Deadline: File before July 31 to avoid penalties (₹5,000 if filed by Dec 31)
• Incorrect HRA Claims: Ensure rent receipts and landlord PAN (for rent > ₹1L/year)
• Not Verifying 26AS: Cross-check all TDS entries with your Form 26AS
• Overlooking Advance Tax: Pay by due dates (15% by Jun 15, 45% by Sep 15, etc.)
• Wrong Regime Choice: Compare both regimes before selecting (use our calculator)

Documentation Checklist

• Form 16 (from employer)
• Bank statements showing interest income
• Investment proofs (for 80C deductions)
• Medical insurance premium receipts
• Home loan interest certificate
• Rent receipts and agreement (for HRA)
• Capital gains statements (for shares/property)
• Form 26AS (tax credit statement)

Module G: Interactive FAQ

What is the standard deduction for salaried employees in FY 2019-20?

The standard deduction for salaried employees in FY 2019-20 is ₹50,000. This was introduced in Budget 2018 to replace the previous transport allowance (₹19,200) and medical reimbursement (₹15,000) exemptions. The standard deduction is automatically applied to your salary income before calculating taxable income.

Note: This deduction is only available under the old tax regime. The new regime introduced in Budget 2020 doesn’t allow this deduction.

How is the Section 87A rebate calculated for FY 2019-20?

The Section 87A rebate for FY 2019-20 provides tax relief to individuals with net taxable income up to ₹5,00,000. Here’s how it works:

• Maximum rebate amount: ₹12,500
• Eligibility: Taxable income ≤ ₹5,00,000
• Rebate amount: Lower of (a) 100% of income tax or (b) ₹12,500
• Available to: All individual taxpayers (not HUFs or companies)

Example: If your taxable income is ₹4,80,000 and calculated tax is ₹11,200, you’ll get full ₹11,200 rebate, making your net tax ₹0.

Source: Income Tax Department

Can I claim both HRA and home loan benefits simultaneously?

Yes, you can claim both HRA (House Rent Allowance) and home loan benefits simultaneously under certain conditions:

1. Different Properties: You must be living in a rented house (for HRA) while owning another property (for which you’re paying the home loan)
2. Genuine Rent Agreement: Must have valid rent agreement and payment proofs
3. Home Loan Property: The owned property should not be self-occupied (or should be deemed let-out)
4. Distance Requirement: The rented and owned properties should ideally be in different cities (though not strictly mandatory)

Tax benefits you can claim:

• HRA exemption (minimum of actual HRA, 50%/40% of salary, or rent paid minus 10% of salary)
• Home loan interest deduction (up to ₹2,00,000 under Section 24)
• Principal repayment deduction (up to ₹1,50,000 under Section 80C)

Important: The Income Tax Department may scrutinize such claims, so maintain proper documentation.

What are the key differences between old and new tax regimes for FY 2019-20?

Feature	Old Regime	New Regime
Tax Slabs	3 slabs (5%, 20%, 30%)	6 slabs (0%, 5%, 10%, 15%, 20%, 25%, 30%)
Basic Exemption	₹2.5L (₹3L for seniors, ₹5L for super seniors)	₹2.5L for all
Deductions	Allowed (80C, 80D, HRA, etc.)	Not allowed (except 80CCD(2) and 80JJAA)
Standard Deduction	₹50,000	Not available
Rebate u/s 87A	₹12,500 (income ≤ ₹5L)	₹12,500 (income ≤ ₹5L)
Surcharge	10% (₹50L-₹1Cr), 15% (>₹1Cr)	Same as old regime
Cess	4%	4%
Best For	Those with significant deductions	Those with income up to ₹15L without many deductions

Note: For FY 2019-20, the new regime was optional. Taxpayers could choose between old and new regimes each year.

How are capital gains taxed in FY 2019-20?

Short-Term Capital Gains (STCG):

• Equity Shares/MF: 15% tax if sold within 12 months
• Debt MF: Taxed at your slab rate if sold within 36 months
• Property: Taxed at slab rate if sold within 24 months

Long-Term Capital Gains (LTCG):

• Equity Shares/MF:
  • ₹1L exemption per year
  • 10% tax on gains above ₹1L (without indexation)
  • Grandfathering for shares acquired before 31/01/2018
• Debt MF/Property:
  • 20% tax with indexation benefit
  • 10% tax without indexation (for property)

Exemptions Available:

• Section 54: Reinvest in residential property (for LTCG from property)
• Section 54EC: Invest in specified bonds (₹50L limit, 5-year lock-in)
• Section 54F: Reinvest in residential property (for LTCG from non-property assets)

Important: LTCG from equity shares/MF became taxable from FY 2018-19 after the ₹1L exemption was introduced.

What documents should I keep for income tax purposes?

Maintain these documents for at least 6 years (assessment period + 1 year):

Income Proofs:

• Form 16 (from employer)
• Bank statements showing interest income
• Rental income statements (if applicable)
• Capital gains statements (from broker for shares/MF)
• Business income records (if self-employed)

Investment Proofs:

• 80C: PPF passbook, LIC premium receipts, ELSS statements, tuition fee receipts
• 80D: Medical insurance premium receipts
• 80G: Donation receipts (with PAN of donee)
• Home loan: Interest certificate from bank, principal repayment statement

Deduction Proofs:

• HRA: Rent receipts, landlord’s PAN (if rent > ₹1L/year), rent agreement
• Education loan: Interest certificate from bank
• Disability certificate (for 80U deductions)

Other Important Documents:

• Form 26AS (tax credit statement)
• AIS (Annual Information Statement) from income tax portal
• Previous years’ ITR acknowledgments
• PAN card copy
• Aadhaar card copy

Digital copies are acceptable, but ensure they’re clearly legible and properly organized.

What happens if I don’t file my ITR by the due date?

Missing the ITR filing deadline (July 31 for most taxpayers) has several consequences:

Late Filing Fees (Section 234F):

• ₹5,000 if filed by December 31
• ₹10,000 if filed after December 31 (but before assessment completion)
• ₹1,000 if total income ≤ ₹5,00,000

Other Penalties:

• Interest on Tax Due (Section 234A): 1% per month on unpaid tax
• Loss Carry Forward: Cannot carry forward losses (except house property loss)
• Delayed Refunds: Processing of any refund claims will be delayed
• Prosecution: Possible for willful tax evasion (rare for genuine delays)

Exceptions:

• No late fee if you don’t need to file ITR (income below basic exemption)
• No penalty if you have no tax liability (but still recommended to file)

Important: Even if you miss the deadline, file your ITR as soon as possible to minimize penalties and maintain compliance.