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An Income tax calculator is an online tool that helps you calculate taxes payable based on your income. According to the income slab, a portion of your net income will be paid as tax.
Income tax calculation is simple and easy with our calculator. We ensure you get a precise value of payable tax through our income tax calculator, which calculates as per the latest income tax rates and rules.
Individuals can calculate their Total Income Tax Liability with the help of an online income tax calculator. The calculator take age, income, expenses, applicable tax deductions and existing investments into account for estimating tax liability.
You can use the calculator to estimate your tax liability by following the below-mentioned steps:
Once you complete these steps, you will see a summary of your annual income, investments, taxable income, and the amount of tax payable.
Note: You can enter "0" for any field that does not apply to you.
The Indian Income Tax System is based on levels of income under which individual taxpayers are taxed. Different tax rates apply to individuals as per their income levels.
Here are three categories under which individuals are supposed to pay tax:
Here are three categories under which individuals pay tax:
✓Individuals below 60 years of age
✓Resident Senior Citizens who are 60 to 80 years of age
✓Resident Super Senior Citizens who are more than 80 years of age
1st Option | 2nd Option | ||
Old Income Tax Slab Regime | New Income Tax Slab Regime | ||
Taxable Income | Tax Rates | Taxable Income | Tax Rates |
Up to ₹2,50,000 | NIL | Up to ₹3,00,000 | NIL |
₹3,00,001 - ₹6,00,000 | 5% | ||
₹2,50,001 - ₹5,00,000 | 5% | ₹6,00,001 - ₹9,00,000 | 10% |
₹9,00,001 - ₹12,00,000 | 15% | ||
₹5,00,001 - ₹10,00,000 | 20% | ₹12,00,001 - ₹15,00,000 | 20% |
Above ₹10,00,000 | 30% | Above ₹15,00,000 | 30% |
1st Option | 2nd Option | ||
Old Income Tax Slab Regime | New Income Tax Slab Regime | ||
Taxable Income | Tax Rates | Taxable Income | Tax Rates |
Up to ₹3,00,000 | NIL | Up to ₹3,00,000 | NIL |
₹3,00,001 - ₹6,00,000 | 5% | ||
₹3,00,001 - ₹5,00,000 | 5% | ₹6,00,001 - ₹9,00,000 | 10% |
₹9,00,001 - ₹12,00,000 | 15% | ||
₹5,00,001 - ₹10,00,000 | 20% | ₹12,00,001 - ₹15,00,000 | 20% |
Above ₹10,00,000 | 30% | Above ₹15,00,000 | 30% |
Income Tax Slab | Old Regime Slab Rates for FY 19-20 and FY 20-21 |
₹0 - ₹2.5 Lakhs | NIL |
₹2.5 - ₹5 Lakhs | NIL |
₹5 - ₹10 Lakhs | 20% |
Above ₹10 Lakhs | 30% |
Up to ₹3,00,000 | NIL |
₹3,00,001 - ₹6,00,000 | 5% |
₹6,00,001 - ₹9,00,000 | 10% |
₹9,00,001 - ₹12,00,000 | 15% |
₹12,00,001 - ₹15,00,000 | 20% |
Above ₹15,00,000 | 30% |
Salaried employees get Form 16 from their employers, which details their total salary and taxes deducted. The form may be used as a reference to calculate taxes. Income generated from other sources such as interest on deposits, investments, and rental income have to be incorporated in the tax calculation.
When using the tax calculator, keep the following rebates/deductions/exemptions available under the income tax law in mind:
An income tax calculator can simplify tax estimate and help you account for every possible tax-saving option. You can use this online calculator anytime during the financial year to readjust your tax-saving investments and tax liabilities.
Listed below are a few benefits of an income tax calculator:
The income tax calculator helps calculate tax liability as per the latest income tax slab rates and tax rules.
For resident and non-resident Indians, the following information helps to calculate the actual tax liability at the end of a financial year –
Tax will vary from individual to individual, based on their respective income slab. The total payable tax is calculated after subtracting the deductions and other taxes you may have already paid such as Advance Tax and Tax Deducted at Source (TDS). This number is called the Net Income Tax Liability.
Income from salary is the aggregate of Basic salary, HRA, Transport Allowance, Special Allowance, etc. Salary components like HRA, Rent, LTA, and Telephone bills are exempt from tax. In addition, a standard deduction of ₹50,000 is also exempt from tax.
You cannot avail of these exemptions if you opt for a new tax regime.
Let us understand income tax calculation with the help of an example:
Component | Amount | Deduction | Taxable Amount as per Old Regime | Taxable Amount New Regime |
Basic Salary | ₹12,00,000 | - | ₹12,00,000 | ₹12,00,000 |
HRA | ₹6,00,000 | ₹1,80,000 | ₹4,20,000 | ₹6,00,000 |
Special Allowance | ₹2,52,000 | - | ₹2,52,000 | ₹2,52,000 |
LTA | ₹20,000 | ₹12,000 | ₹8,000 | ₹20,000 |
Standard Deduction | - | ₹50,000 | ₹50,000 | ₹50,000 |
Gross Total Income | ₹18,30,000 | ₹20,22,000 |
To calculate Income tax, include below-mentioned income from all sources:
✓Interest earned from Savings Account: ₹12,000
✓Interest earned from Fixed Deposit: ₹8,000
✓PPF: ₹50,000
✓ELSS: ₹20,000
✓LIC Premium: ₹9,000
✓Medical Insurance: ₹12,000
✓EPF Contribution: ₹1,44,000 (Rs 1,00,000 *12% *12 = 1,44,000)
Component | Maximum Deduction | Eligible Investments/Expenses | Amount Claimed |
Section 80C | ₹1,50,000 | PPF ₹50,000 + ELSS ₹20,000, LIC ₹9,000 + EPF ₹1,44,000 | ₹1,50,000 |
Section 80D | ₹25,000 (self) ₹50,000 (parents) | ₹12,000 | ₹12,000 |
Section 80TTA | ₹10,000 | ₹12,000 | ₹10,000 |
Component | Amount | Total |
Income from Salary | ₹1842000 | |
Income from Other Sources | ₹20,000 | |
Gross Total Income | ₹1862000 | |
Deductions | ||
80C | ₹1,50,000 | |
80D | ₹12,000 | |
80TTA | ₹10000 | ₹172000 |
Gross Taxable Income | ₹1690000 | |
Total tax on above (including cess) | ₹332280 |
Component | Amount | Total |
Income from Salary | ₹20,72,000 | |
Income from Other Sources | ₹20,000 | |
Gross Total Income | ₹20,92,000 | |
Total tax on above (including cess) | ₹4,90,464 | |
Component | Percentage Deduction | Tax Amount |
₹0 - ₹3,00,000 | Nil | 0 |
₹3,00,001 - ₹6,00,000 | 5% | ₹15,000 |
₹6,00,001 - ₹9,00,000 | ₹15,000 + 10% of total income exceeding ₹6,00,000 | ₹45,000 |
₹9,00,001 - ₹12,00,000 | ₹45,000 + 15% of total income exceeding ₹9,00,000 | ₹90,000 |
₹12,00,001 - ₹15,00,000 | 90,000 + 20% of total income exceeding ₹10,00,000 | ₹1,50,000 |
Above ₹15,00,000 | ₹150,000 + 30% of total income exceeding ₹15,00,000 | ₹177600 |
Cess | 4% of total tax (4% of ₹15,000 + ₹45,000+ ₹90,500 + ₹150,000 + ₹171,600) | ₹13104 |
Total Income Tax | ₹340704 |
Listed below are some tax exemptions that are not allowed anymore under the new tax regime:
From the Assessment Year 2021-22 (Financial Year 2020-21), you can choose a tax regime.
The tax-regime options seem to be only an experiment to assess the popularity of tax-saving investments. Your tax liabilities can be almost identical under both regimes if you select your slabs according to the conditions above.
For example, if you have a taxable income of ₹10 Lakhs in the FY 2023-24, your maximum tax-saving investments could be about ₹2 lakhs including sections 80C and 80D. Thus, your taxable income will be ₹8 lakhs and tax liability around ₹72,500 under the old regime. However, if you do not invest under section 80C and use the new regime to estimate your tax, your liabilities will be about ₹75,000.
Without tax-saving investments and deductible allowances, your tax liability under the new tax regime would be lower. However, if you have invested money in tax saving investments such as voluntary provident fund, life insurance plans, home buying - the old tax regime can offer lower taxes.
If your total taxable income in the FY 2023-24 is ₹15 lakhs here’s how it’ll play out without any tax-saving investments:
New Regime | Old Regime | ||||
Total Taxable Income | ₹15,00,00h | Total Taxable Income | ₹15,00,000 | ||
Tax Saving Investments | NA | Tax Saving Investments | 0 | ||
Total Income (₹) | Rates | ₹15,00,000 | Total Income (₹) | Rates | ₹15,00,000 |
₹0 - ₹3,00,000 | Nil | 0 | Up to ₹2,50,000 | 0 | |
₹3,00,001 - ₹6,00,000 | 5% | ₹15,000 | ₹2,50,001 to ₹5,00,000 | 5% | ₹12,500 |
₹6,00,001 - ₹9,00,000 | 10% | ₹30,000 | ₹5,00,001 to ₹7,50,000 | 20% | ₹50,000 |
₹9,00,001 - ₹12,00,000 | 15% | ₹45,000 | ₹7,50,001 to ₹10,00,000 | 20% | ₹50,000 |
₹12,00,001 - ₹15,00,000 | 20% | ₹60,000 | ₹10,00,001 to ₹12,50,000 | 30% | ₹60,000 |
Above ₹ 15,00,000 | 30% | 0 | ₹12,50,001 to ₹15,00,000 | 30% | ₹75,000 |
- | Above ₹15,00,000 | 30% | 0 | ||
Total Tax Liability | ₹1,50,000 | Total Tax Liability | - | ₹2,47,500 | |
Surcharge | Nil | Surcharge | |||
Health & Education Cess | 4% | ₹6,000 | Health & Education Cess | ₹9,900 | |
Tax Payable | ₹1,56,000 | Tax Payable | ₹2,57,400 |
However, if you have the following investments or expenses, you can lower your income tax outflow under the old regime:
These expenses and investments help you reduce your taxable income, thus, reducing the total applicable tax.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.In comparison to non-senior citizens, senior and super-senior citizens are given a higher exemption limit. The income ...
Read ArticleAccording to Indian income tax laws, you are not liable to pay income tax if your annual income is below Rs.2.50 lakhs ...
Read ArticleThe deadline for filing your income tax return is 31st July which falls after the end of the financial year for which you want ...
Read ArticleThere 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:
Annual Income | Tax Rate(New Regime) | Tax Rates(Old Regime) |
---|---|---|
Up to INR 2,50,000 | Nil | Nil |
INR 2,50,001 to INR 5,00,000 | 5% | 5% |
INR 5,00,001 to INR 7,50,000 | 10% | 20% |
INR 7,50,001 to INR 10,00,000 | 15% | 20% |
INR 10,00,001 to INR 12,50,000 | 20% | 30% |
INR 12,50,001 to INR 15,00,000 | 25% | 30% |
Above INR 15,00,000 | 30% | 30% |
Deductions from Gross Total Income & Allowances NA Allowed | NA | Allowed |
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.
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.
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.