With the new Income Tax Return (ITR) forms notified recently for assessment year 2016-17, filers can do an easy check and obtain their annual tax liability on a computer-based calculator hosted by the IT department, as per the media reports.
The calculator works once a filer correctly feeds his basic details and information, as notified for the current assessment year by the government.
Also, the e-filing facility for ITR-1 (for individuals having income from salaries, single house property and other sources) and ITR-4 (for individuals and Hindu Undivided Families (HUFs) having income from a proprietary business or profession) is expected to go online and get enabled this week, the other ITRs will be hosted soon after, a senior IT department officer said.
The Central Board of Direct Taxes had notified the new forms on March 30 and ITRs can be filed till the stipulated deadline of July 31.
Officials said the calculator has been updated and calibrated by the department as per the new announcements made in respect of tax rates in the latest Budget.
The facility can be used by any taxpayer whether individual, corporate or any other entity, to compute their tax liability.
However, there is a word of caution from the tax department that filers should not solely rely on it as complicated cases of ITR have different requirements which may not be addressed by the 'calculator'
"The calculator is only to enable public to have a quick and an easy access to basic tax calculation and does not purport to give correct tax calculation in all circumstances.
"It is advised that for filing of returns the exact calculation may be made as per the provisions contained in the relevant Acts, Rules etc," a disclaimer by the department says.
The official said the calculator has been hosted on the website of the department —www.incometaxindia.gov.in —, for the ease of all who either do an e-filing or manual filing of ITR.
The calculator has been enabled to compute the total tax liability of an individual or any other category of taxpayer under various heads like income from house property, capital gains, profits and gains of business or profession and agricultural income, among others.
A total of nine such ITRs have been notified which include the Sahaj (ITR-1), ITR-2, ITR-2A, ITR-3, Sugam (ITR-4S), ITR-4, ITR-5, ITR-6, ITR-7 and an acknowledgement form called the ITR-V.
People with an income of more than Rs. 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery will now have to disclose these costly assets with the IT department in the new ITRs.