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Income Tax Calculator

You can use an income tax calculator online to quickly understand your tax liability. The income tax calculator is a simple tool that gets updated with the latest rules and regulations and shows you your accurate income tax liability for the year. To understand how much income tax you need to pay for the financial year ending on 31st March 2022, use our helpful online calculator.

  • 01

    PERSONAL INFORMATION

  • 02

    ANNUAL INCOME DETAILS

  • 03

    INCOME FROM HOUSE PROPERTY

  • 04

    80C DEDUCTIONS

  • 05

    80D DEDUCTIONS

  • 06

    OTHER DEDUCTIONS

  • 07

    SUMMARY

01 PERSONAL INFORMATION

1/7

Years

How to use Income Tax Calculator   

You firstly would need to enter your birth details.

  1. Further ahead, there will be sections that would require information about your income details such as:
    • Basic salary
    • HRA
    • Interest income
    • Profits from business, etc.
  2. Enter the details as per applicable to you.
  3. Once that is done, you need to add your income from house property
  4. Moving on, you need to add the details of your 80C deductions.
  5. After that, you need to add the details of your 80D deductions.
  6. Then the Calculator will ask you to add the details of any other deductions that you may have.
  7. Once that is done, you shall be able to calculate your income tax as per the latest tax regimes and calculations.

How to Calculate Income Tax FY 2022-23
 

To understand your potential tax liability, you first need to figure out your tax slab. People have to pay taxes based on their annual taxable income. By dividing individuals under income tax slabs, the Government ensures that people do not pay very heavy taxes. Currently, there are two tax regimes available in India, each with different taxations for each slab. Let’s take a look at what they are:

Income Tax Slab for New & Old Regime

Income Tax Slab for Old Regime (FY 2022 – 2023)
For Individuals Below the age of 60 years

Annual Income

Rate of Tax

Up to INR 2,50,000 per year

None

INR 2,50,001 to INR 5,00,000 per year

5% on the amount above INR 2,50,000 (with a full rebate under Section 87A) + 4% cess on income tax

INR 5,00,001 to INR 10,00,000 per year

INR 12,500 + 20% on the income over INR 5,00,000 + 4% cess on income tax

INR 10,00,001 or more per year

INR 1,12,500 + 30% on the income over INR 10,00,000 + 4% cess on income tax


For Individuals Between the age of 60 and 80 years (Senior Citizens)

Annual Income

Rate of Tax

Up to INR 3,00,000 per year

None

INR 3,00,001 to INR 5,00,000 per year

5% on the amount above INR 3,00,000 (With a full rebate under Section 87A)+ 4% cess on income tax

INR 5,00,001 to INR 10,00,000 per year

INR 10,000 + 20% on the income over INR 5,00,000 + 4% cess on income tax

INR 10,00,001 or more per year

INR 1,10,000 + 30% on the income over INR 10,00,000 + 4% cess on income tax


For Individuals Above the age of 80 years (Super Senior Citizens)

Annual Income

Rate of Tax

Up to INR 5,00,000 per year

None

INR 5,00,001 to INR 10,00,000 per year

20% on the amount above INR 5,00,000 + 4% cess on income tax

INR 10,00,001 or more per year

INR 1,00,000 + 30% on the income over INR 10,00,000 + 4% cess on income tax


Income Tax Slab for New Regime (FY 2022 – 2023)  

Annual Income

Rate of Tax

Up to INR 2,50,000 per year

None

Between INR 2,50,001 and INR 5,00,000 per year

5% on the amount above INR 2,50,000 (with a total rebate under Section 87A) + 4% cess on income tax

Between INR 5,00,001 and INR 7,50,000 per year

INR 12,500 + 10% on the income over INR 5,00,000 + 4% cess on income tax

Between INR 7,50,001 and INR 10,00,000 per year

INR 37,500 + 15% on the income over INR 7,50,000 + 4% cess on income tax

Between INR 10,00,001 and INR 12,50,000 per year

INR 75,000 + 20% on the income over INR 10,00,000 + 4% cess on income tax

Between INR 12,50,001 and INR 15,00,000 per year

INR 1,25,000 + 25% on the income over INR 12,50,000 + 4% cess on income tax

INR 15,00,001 or more per year

INR 1,87,500 + 30% on the income over INR 15,00,000 + 4% cess on income tax


Surcharge (applicable for Old & New Tax Regime):

Surcharge is levied over and above the tax subject to marginal relief at following rates if total income exceeds specified limits:

Total Income

Rate of surcharge*

Exceeding INR 50 lakhs but not exceeding INR 1 Cr.

10%

Exceeding INR 1 Cr. but not exceeding INR 2 Cr.

15%

Exceeding INR 2 Cr. but not exceeding INR 5 Cr.

25%

Exceeding INR 5 Cr.

37%

*In case where total income includes any income by way of dividend and capital gains chargeable under section 111A and section 112A of Income Tax Act, the rate of surcharge on the amount of income tax computed in respect of that part of income is restricted to 15%.

Health and education cess at 4% is to be applied on amount of surcharge also.

Once you understand your tax slab based on your income, age and eligible tax deductions, you can use the figures given above to calculate your tax. Let’s assume a 50-year-old man earns INR 9,60,000 per year. He invests in the PPF and purchased life insurance for himself with a premium of INR 2,55,000. Since he falls under the old tax regime, he first needs to calculate his taxable income. After making the eligible deductions, his taxable income works out to INR 8,10,000. Based on his age and taxable income, he needs to pay INR 12,500 + 20% of (8,10,000 – 5,00,000) as income tax. The amount works out to INR 74,500 plus Health and Education cess of INR 2,980 (74,500*4%)

Let’s assume the man did not make any investments or deductions. His taxable income would be the entire INR 9,60,000. As per the income tax slabs in the new regime, he would have to pay INR 37,500 + 15% of (9,60,000 – 7,50,000). In this scenario, the income tax amount works out to INR 69,000 plus Health and Education cess of INR 2,760

Calculate Income Tax for the Old Regime

Under the old tax regime, individuals can claim eligible deductions as per the provisions outlined in Section 80C of the Income Tax Act#. So, money they invest for their future in funds such as the NPS or PPF can get deducted from their taxable income. Before calculating their income tax liability, these individuals must calculate their taxable income. Once they make the deductions, they arrive at the taxable income amount. Based on their age and their taxable income, they can understand which tax bracket they fall under and pay the requisite taxes accordingly.

Calculate Income Tax for the New Regime

The new tax regime does not allow any deductions. It’s helpful for individuals who have not made too many investments, since the tax amount is lower. Here, individuals do not have to work out their taxable income. They simply need to understand which tax bracket they fall under and they can calculate their tax liability with ease.

Income Tax Calculation


We can understand how to calculate an individual’s income tax liability by using an example. Amit, a 45-year-old, earns INR 12,00,000 per year. As per his income break-up, he gets HRA of INR 45,000 per month even though he pays monthly rent of INR 60,000. Additionally, he purchased a life insurance policy for himself, with a premium of INR 3,00,000. He also pays the premiums for health insurance plans for himself and his mother, who is 70. Let’s take a look at how Amit should calculate his income:

Total Income – INR 12,00,000
Standard Deduction – INR 50,000
HRA – INR 45,000
Deduction against Life Insurance Premium – INR 1,50,000
Deduction against Health Insurance Premium – INR 75,000

So, Amit’s total taxable income works out to INR 8,80,000.

His income tax liability is INR 12,500 + 20% of the taxable income above INR 5,00,000
= INR 12,500 + 20% (8,80,000 – 5,00,000)
= INR 12,500 + 20% of 3,80,000
= INR 12,500 + 76,000
=INR 88,500+ INR 3,540 (88,500*4%)

So, the total tax Amit has to pay works out to INR 92,040.

Now, let’s take a look at Varun’s situation. Varun earns INR 12,00,000 per year. He does not make any investments, so he follows the new tax regime. He forgoes the standard deduction and his HRA deduction. His taxable income is INR 7,50,000.

As per the new tax regime, his income tax liability is INR 75,000 + 20% of the income above INR 10,00,000

= INR 75,000 + 20% (12,00,000 – 10,00,000)
= INR 75,000 + 20% of 2,00,000
= INR 75,000 + 40,000
=INR 1,15,000 + INR 4,600 (1,15,000* 4%)

So, the total tax Varun has to pay works out to INR 1,19,600.

Benefits of Filing Income Tax Online


Every individual who earns more than the basic exemption limit must file their Income Tax Returns (ITR). Even if your taxable income is less than the exemption limit, you need to file a nil return. Today, you can file your ITR online. Let’s take a look at the benefits of filing your ITR online:

  • You can complete the process quickly at your convenience
  • Online filing allows faster electronic refunds
  • You can get instant confirmation of filing and real-time updates on your ITR status
  • The process is completely safe and very secure
  • ITR serves as income and address proof and can be used to apply for visas, loans and insurance
  • Online ITR filing helps you avoid any late fee or penalty since you can do it well before the cut-off date by yourself

Eligibility Criteria to File Income Tax
 

The individuals who are eligible to file income tax returns in India include:

  • Hindu Undivided Family (HUF)
  • Associations of Persons (AoP)
  • Resident citizens
  • Local authorities
  • Corporate firms
  • Companies
  • Body of Individuals (BoI)
  • Artificial Juridical Persons
  • Charitable and Religious Trusts

Income Tax Exemptions for Salaried Individuals
 

Let’s take a closer look at the income tax exemptions salaried individuals can enjoy under the old tax regime:

  • Standard deduction or INR 50,000

  • House Rent Allowance or HRA

  • Leave Travel Allowance or LTA for domestic travel only

  • Work-related expenses including telephone bills

  • Deductions under various sections of the Income Tax Act, 19611, such as:

    • Sections 80C and 80CCD(1) for contributions to NPS, life insurance premium, ELSS, tuition fee, tax-saving FDs, etc.
    • Section 80D for health insurance premiums
    • Sections 80C, 24B and 80EEE or 80EEA against repayments for their home loan
    • Section 80E for education loan interest payments
    • Section 80G for contributions to valid charitable organisations
    • Section 80TTA for the interest accrued on a savings account

Frequently Asked Questions

1 When can you file your income tax returns?

Individuals need to file Income Tax Returns (ITR) on or before the 31st August of the current financial year.

2 What is the difference between exemption and deduction?

Income tax exemptions are restricted to particular sources of income and are not applicable on the total income. For instance, agricultural income is exempted under tax. You can also get tax exemption by re-investing long-term capital gains arising from a property sale in a real estate property or specified bonds within a certain time period.

3 What are the major tax provisions introduced in the budget for Individual taxation?

FM introduced a new tax regime for Individuals and HUFs for income <₹ 15 lakh. It provides for new tax slabs with reduced tax rates without allowing for deductions (80C, 80CCC, 80D, 80G, interest from housing loan, etc)/exemptions (LTA, HRA, Standard deduction of salary, etc)

4 What are the different tax slabs and tax rates under the new tax regime?

Total Income per annum Tax Rates
Upto ₹ 2.5 lakh Nil
Above ₹ 2.5 lakh up to ₹ 5 lakh 5%
Above ₹ 5 lakh up to ₹ 7.50 lakh 10%
Above ₹ 7.50 lakh up to ₹ 10 lakh 15%
Above ₹ 10 lakh up to ₹ 12.50 lakh 20%
Above ₹ 12.50 lakh up to ₹ 15 lakh 25%
Above ₹ 15 lakh 30%

5 Which are the deductions/exemptions not available under the new tax regime?

Deductions/exemptions not allowed* Deduction amount (₹)
80C investments 1,50,000
House Rent allowance (HRA) As applicable
Leave Travel Allowance (LTA) As applicable
Housing Loan interest 2,00,000
Medical insurance premium 50,000
(considered for self and parents<60 yrs.)
Standard deduction of salary 50,000
Savings bank interest 10,000

*All chapter VI-A deductions and specific exemptions u/s 10 are not available

6 Whether section 10(10D) exemption is available in the new tax regime?

Yes. Section 10(10D) exemption continues for a life insurance policy under both new and old tax regime.

7 How will the new tax regime work for an individual?

While computing your tax liability, in the new tax regime you will have to forgo the deductions/exemptions stated in Q.3 above and apply new tax slabs and reduced tax rates as stated in Q.2 above.

8 Is the new tax regime optional? Can I change the option once selected for any financial year?

Yes.

a) For individuals without business income, option can be selected every financial year.

b) For individuals with business income, one time option to select the new tax regime from financial year 2020-21. Once option chosen it cannot be changed.

9 Is tax planning still required since FM has announced a lower tax rate without deductions/exemptions?

Yes, certainly. Though FM has provided an optional new tax regime, an individual has to weigh the old tax regime and new tax regime, to optimize tax savings and creation of wealth through investments for meeting his future needs.

Tax planning is one of the important aspects of financial planning. Taking control of your own finances is a key to wealth creation. This can be achieved by taking tax benefits (deductions/exemptions) available under the Income tax law, which further leads to creation of an asset pool for your future.

The investment in life insurance, pension and health insurance is imperative to fulfill your financial goals such as children’s education, marriage, your own retirement needs, life and health eventualities of your family.

10 Does my investment in insurance and pension still be eligible for tax benefit?

These investments are still eligible for tax benefit under the old tax regime.

12 What is the taxability of dividend received in the Budget proposal?

Currently dividend is tax free in the hands of the recipient. However, it will be taxed in the hands of recipient from financial year 2020-21.

13 Whether there is any TDS on dividend income in Budget proposal?

Yes. Companies distributing dividend to its shareholders will be deducting TDS @10% for dividend exceeding ₹ 5000.

TDS will be reflected in Form 26AS as well.

14 What details do I need to provide while e-filing my ITR?

When you e-file you’re ITR, you need to provide the following details:

  • PAN

  • Aadhaar number

  • Permanent address

  • Bank account details for the financial year, including the account where you would like to receive refunds, if any

  • Form 16 and other documents to prove your sources of income

  • Details regarding your deductions, such as a premium certificate

  • Proof of tax paid, including TDS payment records

15 Does everybody have to file their income tax returns?

Individuals who earn more than the basic tax exemption amount must file their income tax returns. A 25-year-old who earns INR 2,70,000 has to file a NIL tax return since their taxable income is below the limit, but their income amount is over the exemption limit.

 

16 How much tax should I pay on my salary?

The amount of tax you need to pay depends on your age, your annual income and whether you’d like to use the old tax regime and claim deductions or follow the new tax regime.

 

17 What is the maximum non-taxable income limit?

For individuals below 60, the maximum non-taxable income is INR 2,50,000. Under the old tax regime, the maximum non-taxable income for individuals between 60 and 80 is INR 3,00,000. For citizens over 80, the maximum non-taxable income is INR 5,00,000. Both the old and new tax regimes allow a complete rebate up to INR 12,500 for income up to INR 5,00,000.

18 Does the income tax calculator calculate TDS?

Generally, no the income tax calculator will not calculate TDS. However, you can use the income tax calculator to understand your tax liability and then check your TDS amounts to understand if you should claim a refund or pay any difference.

 

19 What is the limit of deduction under Section 80C?

Under Section 80C#, you can claim a maximum deduction of INR 1,50,000.

20 What is the Income Tax Certificate?

The income tax certificate is a document that the Government of India provides stating that you have paid all your taxes and that you do not have any pending tax liability.

21 How does income tax affect my credit score?

Technically, your income tax does not directly impact your credit score. But, when you file your ITR on time and regularly, you can use the document to help get a loan. Once you start repaying your loan, you can build your credit score.

1. Tax benefits/deductions are subject to provisions of the Income Tax Act, 1961. Tax Laws are subject to change from time to time.

#. The customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.

The tax calculations stated above are a broad understanding of the Income Tax Provisions and therefore is not specific advice in regard to your personal tax and investment matters. Kindly contact your tax consultant for exact calculation of your tax liabilities. The above mentioned tax benefits are subject to changes in the tax laws.

This interactive does not constitute an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. HDFC Life Insurance Company Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the interactive.

The information being provided through this interactive is provided for your assistance/ information only and is not intended to be and must not alone be taken as the basis for an investment decision (“Information”). The recipient/ user assume the entire risk of any use made of this Information. Each recipient /user of this interactive should make such investigation as it deems necessary to arrive at an independent decision while making an investment and should consult his own advisors to determine the merits and risks of such investment. The investment discussed or views expressed may not be suitable for all investors. HDFC and its affiliates, group companies, sales staff, financial consultants, officers, directors, and employees may have potential conflict of interest with respect to any recommendation, related information or opinions.

This Information should not be reproduced or redistributed or passed on directly or indirectly in any form to any other person or published, copied, in whole or in part, for any purpose. This Information is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject HDFC and its affiliates/ group companies to any registration or licensing requirements within such jurisdiction. The distribution of this Information in certain jurisdictions may be restricted by law, and persons in whose possession this Information comes, should inform themselves about and observe, any such restrictions. The Information given in this interactive is as of the date of this report and there can be no assurance that future results or events will be consistent with this Information. This Information is subject to change without any prior notice. HDFC reserves the right to make modifications and alterations to this statement as may be required from time to time. However, HDFC is under no obligation to update or keep the Information current.

Neither HDFC nor any of its affiliates, group companies, directors, employees, sales staff, financial consultants or representatives shall be liable for any damages whether direct, indirect, special or consequential including health, physical well being, lost revenue or lost profits that may arise from or in connection with the use of the Information. Past performance is not necessarily a guide to future performance.

ARN: ED/02/22/27580