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I built this command-line tax calculator as a side project. This script determines: - When you're made an offer for a given CTC, how much will you take home e
by kartickv 8y ago
I built this command-line tax calculator as a side project.
This script determines:
- When you're made an offer for a given CTC, how much will you take home every month?
- If you want a certain amount of take-home pay every month, what CTC should you ask for?
This is for Indians.
This script handles:
- Differing tax treatments for employees and consultants. The latter are eligible for presumptive taxation under section 44AD.
- Health and education cess
- Surcharge
- GST
- PF and pension
- Section 80C investments
- Professional tax
- kranner 8y agoSection 44ADA, not 44AD. 44AD is for businesses and has a presumptive taxable income of 8% of gross income. 44ADA is for (eligible) individuals and has a presumptive taxable income of 50% of gross income.
- kartickv 8y agoYou can change the 50% to the 8% by editing that parameter in the code. According to my CA, individuals might be eligible for both depending on what they do. It's not just for businesses. If you're providing a service, like a freelance programmer, it's 50%. But if you're building your own product, it's 8%. Or some such distinction. In any case, the script supports both; just change the parameter.
- jpatokal 8y agoFor the non-Indians in the audience, what is "CTC"?
- webbrahmin 8y agoCost to Company ie what an employee costs a company. It is also sometimes used in place of salary although incorrectly.
- victor106 8y agoCost To Company When I was in India a number of years ago, this term got thrown around a lot. I had no idea what it meant. It basically means what is the total cost to a company for hiring you. Not just the salary they pay you but other costs like insurance, stock options, other benefits etc.,
- kartickv 8y agoSorry for that. As the other comments point out, it's used inconsistently. The way I've used it here is to include the employer's contribution to pension and provident fund (retirement savings), not just the employee contribution.
- godzilla82 8y agoI am not sure if you have handled this or even if it is possible to handle the fact that the "basic" component of the salary is not a fixed percentage of the CTC. So two people with same CTC can have different "basic". This basic component also determines the max exemptions you can claim for e.g. under HRA. Also, employers themselves try to structure the basic and the HRA components to reduce the tax burden of their employees by modifying the basic. Exemptions under HRA have to be declared by the employer.
- kartickv 8y agoGood point. The comments at the top of the file say what's handled and what's not, and HRA is not. About basic, yes, that's a pain.
- godzilla82 8y agoSorry, dont want to sound too negative, but the tax calculator is so simple it doesn't handle even the most basic stuff. I am guessing you have never paid tax at the income tax website. I would suggest you to go the income tax website and see the inputs that the calculator takes.
- kartickv 8y agoI did look at that and many other tax calculators, and some are so complex that people don't know what to put in. It's intimidating. I built this for my needs. If you want it to handle HRA, or LTA, or income 1 crore and above, etc, that's an entirely reasonable point of view, and I'd welcome a pull request if you have the time.
- godzilla82 8y agoBut am I correct in my assumption that you have never paid taxes yet? :) Any one who has ever been on a payroll will know that the basic component is dynamic. Also I don't know anyone who does not claim any exemptions!
- amirathi 8y agoNice work! Do consider slapping a simple UI and hosting it somewhere online. You'll be surprised how many organic visits it'll get a year or two from now. Bonus points if the website copy overlaps well with search keywords :)