Income Tax Calculator
An Income-tax calculator is an online device that helps to assess taxes based on a individual income when the Union Budget for the year is announced. The people falling under the taxable income bracket are prone to pay a specific portion of their net yearly income as tax. Income tax may be paid either as tax withdraw at source while payment of monthly salary or through the income tax returns portal which is managed by the (CBDT) Central Board of Direct. The services for online payment of taxes is to make sure the individuals pay their specified dues on any earnings which is created by other sources.
The Income Tax calculator given on this page is lined up with the updates announced in the Union Budget for the FY 2023-24 and AY 2024-25.
How To Use Online Income Tax Calculator?
Follow these steps to use the income tax calculator:
- Firstly, you need to select the assessment year for which you want to calculate the payable tax.
- In the second step, select your age. Income tax in India is different for different age groups.
- Click on the ‘income field’. You need to enter the details of your gross salary. You also need to fill up other details like yearly income from other sources along with annual interest paid on housing loans for the self-occupied property.
- Enter the details of various tax deductions. You have to provide the details of interest on an educational loan along with deposits on the savings account.
- Next provide the details of HRA exclusion such as basic salary, Dearness Allowance, House Rent Allowance, and total rent paid per year.
- Lastly, select if you live in a metro city and then click the calculate button to see the results.
How to Understand Income Tax Slabs?
The Indian Income-tax works on the base of a slab system and the tax is imposed accordingly. Slab means the different tax rates which is charged for different income ranges. In simple words it means the more your income, the more tax you need to pay. These slabs of income tax are amended every year during the budget announcement. Moreover, these slab rates are separated for different taxpayers. According to the Income-tax of India, there are three divisions of “individual “taxpayers. They are:
- Person below the age group of 60, both residents and non-residents.
- Resident Senior citizens – in the age group of 60 to 80 years.
- Resident Super senior citizens – more than the age group of 80 years.
How can we Calculate the Total Income Tax liability?
An individual can discover the total tax payable with the help of the online Income Tax calculator. Such tools take into consideration the following points to show the accurate tax liable of a resident or non-resident at the end of the year –
- Annual income from salary or profit.
- Income from other sources such as rental income, investment etc.
- Any tax deductions.
- Transport allowance and house rent.
Entering the accurate data in favour of the above-mentioned points will reveal the total tax liability of individuals. Minus the taxes which is already paid through TDS (Tax Deducted at Source), the remaining could be deposited online through the official portal Challan 280. If in any event taxes paid crosses the total liability then the difference is compensated by the government in 30 days.
Exclusion on Total Income Tax
SECTION 87A: Individual with income below Rs. 5 lakh is qualified for a tax rebate of up to Rs. 12,500.
SECTION 80C: Refund of up to Rs. 1.5 Lakh in any tax-saver fixed deposits, PPF, NSC etc.
SECTION 80 CCD (1B): Tax deduction of up to Rs2 lakh for money deposited in the (NPS) national pension system.
SECTION 80D: Rs. 25,000 tax deductions on medical insurance premium bills. For senior citizen it is Rs. 50,000.
SECTION 80G: Donations made to charitable organizations is fully free from tax.
SECTION 80E:Education loan enjoys aninterest of 100% tax refund for up to 8 years.
Section 80TTA/80TTB: Interest income from savings accounts is qualified for tax waivers up to Rs. 10,000. Alltypes of interest income up to Rs. 50,000 are fully waivered from tax calculations for senior citizens.
SECTION 80GG: Tax deduction on income spent towards paying HRA (House Rent Allowance)