Income Tax Calculator FY 2022-23 (AY 2023-24)

There are a few sources of income which are fully exempted from income tax in India. Incomes listed under Section 10 (1) of the Income Tax Act are not taxable in India. Some of them are:

No income tax is payable for total taxable income up to Rs 5 lakh in both the old and new tax regimes. If senior citizens or super senior citizens choose the new tax regime, they will have to forego the benefit of the higher exemption ceiling. Under the new optional regime, the higher exemption limit of Rs 3 lakh for senior citizens and Rs 5 lakh for super senior citizens will no longer be available. The baseline exemption ceiling for all taxpayers would remain at Rs 2.5 lakh under the new tax regime.

It is not necessary to file an income tax return if your income is less than the current taxable threshold. Experts recommend filing your ITR with a NIL return if you have a PAN (Permanent Account Number) card and an income that is below the taxable level. This is to inform the IT department that you did not have any taxable income in a given year.

Individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax should file their income tax returns, according to Section 139 (1) of the Income Tax Act. Here are a few details that you need while e-filling your income tax returns:

Assessment year (AY) 2021-22 has two options available as tax slab rates – new and old regime. The new tax regime allows for lower tax liability for those taxpayers who do not invest in tax-saving options. Here are the tax rates under both old and new regimes:

4% Health and Education Cess is applicable on the total tax payable amount after the slab rates.

The income tax calculation for the financial year 2020-21 (AY 2021-22) depends on your taxable income and the tax slab regime you want to follow.

Income Tax Calculation as per Old Regime

If you have invested in tax-saving options or have a running home loan, you can use the old tax regime. In this case, you will follow the process of deducting the tax-saving investment and loss from house property from your taxable income first. Then calculate tax as per the old slab rates on the remaining amount.

Income Tax Calculation as per New Regime

Under the new tax regime, deductions are not applicable. Thus, you simply take the taxable income amount and use the new tax slab rates to estimate tax.

You can

Also Read - save tax through investments in life insurance plans, ELSS funds, ULIP plans, NPS, PPF, Sukanya Sammriddhi Accounts, and similar investments. These investments will help you reduce your taxable income by up to Rs. 1.5 lakhs. Further, if you have health insurance cover for family and parents, you can save up to Rs 75,000 more. Contribution to notified welfare funds and institutions also qualifies for deduction under section 80G.

The standard deduction for AY 2021-22 is Rs. 50,000 raised from Rs. 40,000 in the 2019 Union Budget. However, this deduction is not allowed in the new tax regime.

The limit for income tax deduction from gross total income under section 80C is Rs. 1.5 lakhs. Which include the contributions made under section 80C, 80CCC, 80CCD(1). In the case of a senior citizen, the limit may go up to Rs. 2 lakhs for certain transactions such as repayment of home loan principal amount.

No, tax deduction under section 80C is still available after the 2020 budget. However, if you have not invested in the options available under the section, you now have the option of using a lower tax slab rate. The new rates are also called the new tax regime and it lowers the tax outflow for taxpayers who do not invest in 80C instruments.

Minimum taxable income remains at Rs. 2.5 lakhs for the year 2021. However, with new standard deductions in place, you can enjoy zero tax outflows for an annual income of up to Rs. 5 lakhs.

Final filing dates for AY 2020-21 ITR were extended to 31st May 2021, due to the unprecedented situation of lockdown across the country. However, if you missed the deadline, you could still file the return, albeit with a penalty of up to Rs. 10,000 and interest on the payable tax amount.

Yes, under the new tax regime standard deduction under section 87A is not applicable. The new tax regime aims to offer tax relief to those taxpayers who do not invest in tax-saving plans. However, you can still claim the deductions if you are investing in such instruments under the old regime.