Income Tax Calculator
An income tax calculator is a simple online tool which can help you calculate taxes payable on your income. We have updated our income tax calculator according to the latest income tax rates & rules, so you may calculate your tax with accuracy and without worry. If you wish to know more about FY 2021-22 (AY 2022-23) income tax slabs click now.
How to use Income Tax Calculator
You firstly would need to enter your birth details.
- Further ahead, there will be sections that would require information about your income details such as:
- Basic salary
- Interest income
- Profits from business, etc.
- Enter the details as per applicable to you.
- Once that is done, you need to add your income from house property
- Moving on, you need to add the details of your 80C deductions.
- After that, you need to add the details of your 80D deductions.
- Then the Calculator will ask you to add the details of any other deductions that you may have.
- Once that is done, you shall be able to calculate your income tax as per the latest tax regimes and calculations.
Frequently Asked Questions
Individuals need to file Income Tax Returns (ITR) on or before the 31st August of the current financial year.
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.
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)
|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%|
|Deductions/exemptions not allowed*||Deduction amount (₹)|
|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
Yes. Section 10(10D) exemption continues for a life insurance policy under both new and old tax regime.
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.
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.
These investments are still eligible for tax benefit under the old tax regime.
No. It will apply from financial year 2020-21.
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.
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.
Articles Related to Income Tax Calculator
How To File Income Tax Returns Online
It is important to how to file ITR on time, to avoid last minute stress and penalties. Once you have filed your ITR, the income tax verification form is generated by the IT department so that taxpayers can verify the validity and legitimacy of e-filing.
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.
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