What is the Income Tax Calculator?
An Income-tax calculator is an online tool that helps to evaluate taxes based on a person’s income once the Union Budget for the year is announced. Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax.
Income tax can be paid either as tax deducted at source while disbursement of monthly salary, or through the income tax returns portal managed by the Central Board of Direct Taxes (CBDT). The provision for online payment of taxes is to ensure individuals pay their stipulated dues on any earnings generated from other sources.
Following are the steps to use the tax calculator:
1. Choose the financial year for which you want your taxes to be calculated.
2. Select your age accordingly. Tax liability in India differs based on the age groups.
3. Click on ‘Go to Next Step’
4. Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (if you want to know your tax liability under the old tax slabs)
Or else, just enter your salary i.e salary without availing exemptions such as HRA, LTA, standard deduction, professional tax and so on. (if you want to know your tax liability under the new tax slabs)
5. Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self occupied property.
6. Click on ‘Go to Next Step’ again.
7. In case, you want to calculate your taxes under the old tax slabs,you will have to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.
8. Click on ‘Calculate’ to get your tax liability. You will also be able to see a comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).
Note: Whichever field is not applicable, you can enter “0”.
You can even get your tax computation on your mail.
