1. February 3, 2011 CASE STUDY ON: TAX CALCULATOR ANKIT GHOSH: 1012756 AMRUTHA p v: 979072 BHAGYASHREE BINJAWADAGI: 004494 MALLIKARJUN KOTAGI: 1004513 MOHAN KUMAR:984203

2. February 3, 2011 THE SOFTWARE SUPPORTS:- – Authentication to user. – Reading employee information. – Calculation of PF, Total 80C deductions, Total 80D deductions and taxable income amount. – It also displays the employee information. FEATURES OF THE SOFTWARE:-

3. February 3, 2011 -The software takes two inputs from user that is username and password. -It compares this username and password with the one stored in memory using if-else statement. -If username and password match then user gets authentication and can see the entire calculations else the software will show access denied. AUTHENTICATION TO USER :

4. February 3, 2011 UI for Module UI for Input Module All the employee details needed for tax calculation are read from the employee. Tax calculation depends on details like assessment year, age, gross salary and various exemptions which are deducted from gross salary.

5. February 3, 2011 UI for Module

6. February 3, 2011 UI for Module

7. February 3, 2011 UI for Module Pseudo code for exemptions calculation PF is computed as 12% of Basic Pay. IF location is a Metro region THEN HRA is computed as 50% Of Basic Pay. ELSE HRA is computed as 40% of Basic Pay. Total 80c deductions. Total 80d deductions. Home loan exemptions

8. February 3, 2011 UI for Module To calculate taxable income TaxableIncome (TI) = GrossPay – [80C Excemptions + 80D Excemptions + Donations + HRA + Home loan Interest] Income slabsGeneral category (age<60) Senior citizens (60>=age<80) Very senior citizens (age>=80) Up to Rs 2,50,000Nil Rs 2,50,001 to Rs 3,00,000 10%Nil Rs 3,00,001 to Rs 5,00,000 10% Nil Rs 5,00,001 to Rs 10,00,000 20% Above Rs 10,00,000 30% Income tax slabs and rates

9. February 3, 2011 UI for Module If (age < 60) if (TI > 0 && TI <= 2,50,000) then tax = 0 else if (TI > 2,50,000 && TI <= 5,00,000) then tax = (TI - 2,50,000) * 0.1 else if (TI > 5,00,000 && TI <= 10,00,000) then tax = 25,000 + (TI - 5,00,000) * 0.2 else tax = 1,25,000 + (TI - 10,00,000) * 0.3 If (age > 60 && age <= 80) if (TI > 0 && TI <= 3,00,000) then tax = 0 else if (TI > 3,00,000 && TI <= 5,00,000) then tax = (TI - 3,00,000) * 0.1 else if (TI > 5,00,000 && TI <= 10,00,000) then tax = 20,000 + (TI - 5,00,000) * 0.2 else tax = 1,30,000 + (TI - 10,00,000 ) * 0.3 If (age>80) if (TI > 0 && TI <= 5,00,000) then tax = 0 else if (TI > 5,00,000 && TI <= 10,00,000) then tax = (TI - 5,00,000) * 0.2 else tax = 1,00,000 + (TI - 10,00,000) * 0.3 Pseudo code

10. February 3, 2011 UI for Module

11. February 3, 2011 UI for Module Exemptions Description Exemptions under 80c(Max limit<1,50,000): Here the deduction is allowed from your gross total income. You can reduce/minimize the taxable income by investing your money into-Life insurance, home loan principle, PF(12% of basic salary), saving scheme, etc. deductions = (life_insurance+home_loan_principle+PF+savings)<1,50,000 taxable_income = gross_total_income-deductions Exemptions under 80d(No limit): Health insurance premium, donations if any. deductions = health_insurance_premium + donations taxable_income = gross_total_income-deductions

12. February 3, 2011 Exemptions under HRA: An employee can claim exemption on his HRA under the income tax act if he stays in a rented house and is in receipt of HRA from his employer. 1. Actual house rent allowance received from your employer 2. Actual house rent paid by you minus 10% of your basic salary 3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro. Exemptions under home loan interest:

13. February 3, 2011 REQUIREMENTS OF UI TAX CALCULATOR Error in the calculation leads to payment of excess or reduced tax Simple user interface needed Accessible only to authenticated user Benefits also needed to be calculated along with tax Exemptions needed to be included

14. February 3, 2011 BENEFITS Easier to get your taxes done right Benefits and exemptions are also included in the calculations Produce accurate and precise results. Not much maintenance required, updated once in a year

15. February 3, 2011 THANK YOU