Filing your income tax return in India doesn't have to be a daunting task. The Income Tax Department has made the process simpler and more transparent with its user-friendly online Income Tax Calculator. This handy tool helps you estimate your tax liability quickly and accurately, allowing for better financial planning.
Here's a step-by-step guide on how to use the Income Tax Calculator:
1. Accessing the Calculator:
Visit the official website of the Income Tax Department of India.
Navigate to the "Tax Tools" section and select "Income Tax Calculator."
(https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator)
2. Inputting Your Information:
Choose the relevant financial year for which you want to calculate your taxes.
Select your age bracket from the options provided.
Choose the appropriate tax regime: Old Regime or New Regime (introduced in Budget 2020).
Enter your estimated total income from all sources. This includes salary, business income, capital gains, rental income, and any other sources of income.
Input any deductions you are eligible for under various sections of the Income Tax Act (e.g., Section 80C, 80D, etc.).
Provide details of any taxes deducted at source (TDS) from your income.
3. Calculating Your Tax Liability:
Once you've entered all the necessary information, click on the "Calculate" button.
The calculator will instantly display your estimated tax liability, including income tax, surcharge, and cess.
It will also show a breakdown of your tax liability under different heads and any refund or tax payable.
Alternatively, you can also check out Business Today's Income Tax Calculator.
Benefits of Using the Income Tax Calculator
Simplicity and Ease: The calculator simplifies tax computation and eliminates manual calculations.
Accuracy: It ensures accurate tax liability estimations based on the latest tax slabs and regulations.
Informed Decision Making: It helps you compare tax liabilities under the old and new tax regimes, enabling informed financial decisions.
Financial Planning: Knowing your potential tax liability in advance allows for better financial planning throughout the year.
Important Note
The Income Tax Calculator provides an estimate based on the information you provide. It's always recommended to consult with a qualified tax advisor for personalised advice and accurate tax filing.
Tax Slabs
The new tax regime helps save Rs 17,500, and standard deductions for salaried employees hiked to Rs 75,000.
Up to 3,00,000: Nil From 3,00,001 to 7,00,000: 5% From 7,00,001 to 10,00,000: 10% From 10,00,001 to 12,00,000: 15% From 12,00,001 to 15,00,000: 20% Above 15,00,000: 30%