Recently, Mr. Vijaykumar has developed Income Tax Calculator for Fin. Year 2015-16 for Salaried Employee on Monthly Salary Basis. This utility for salaried individuals to compute Income Tax on salaries in simple way.
Efficient tax planning enables you to reduce tax liability to the minimum. This is done by legitimately taking advantage of all tax exemptions, deductions & rebates. Tax Planning is NOT tax evasion which is illegal under laws. It involves planning of income & investments. Tax Planning can be practiced easily. Often staff gives estimated declaration at FY starting to minimize tax liabilities but could not save till FY end; and faces burden in last months. Better start investing from the beginning of FY to get interest & appreciation from April.
Tax deduction on monthly basis (employer's corner): Normally employer estimates total income of employee & calculates I-Tax, estimated tax is to be divided by 12 months & avg tax from monthly salary is to be deducted. Hence raise saving plans in advance considering the pay hike & send the correct proofs to payroll. Ensure the document delivery within the pay roll's time frame.
If employee resigns: An employee resigns or otherwise leaves the service, only the salary due and payable up to the date on which he leaves service shall be considered and tax shall not be deducted from the future salary.
Download Income Tax Calculator FY 2015-16