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

An income tax calculator is a simple online tool that calculates how much tax you are liable to pay in a given financial year. Income tax calculator helps you to get an estimate of your tax liability by considering various components such as your age, income, investments, deductions etc.

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

An income tax calculator is a simple online tool that calculates how much tax you are liable to pay in a given financial year. Income tax calculator helps you to get an estimate of your tax liability by considering various components such as your age, income, investments, deductions etc.

Income Tax Calculator

Calculate Income Tax Online

Investment Details

Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.150000 per year.
Maximum deduction is Rs.25,000 per year.
Maximum deduction is Rs.50,000 per year.
Maximum deduction is Rs.5000 per year..
Maximum deduction is Rs.50,000 per year.

Note:
The premium paid towards health insurance policies taken for self, spouse, children or parents is eligible for tax deduction u/s 80D:
The maximum limit for deduction on Health Insurance Premium, Health Insurance Premium for Senior Citizen and Medical Expenditure paid on health of senior citizen cannot exceed ₹ 50,000.
The maximum limit for deduction on Health Insurance Premium and Preventive Health Checkup can not exceed ₹ 25,000
The maximum limit for deduction on Health Insurance Premium for Senior Citizen and Preventive Health Checkup cannot exceed ₹ 50,000
The maximum limit for deduction on Preventive Health Checkup for Self, Family and Parents is ₹ 5,000

Maximum deduction is Rs.50000 per year.

Summary

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Total Investments

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Taxable Income

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Tax Payable

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What is an Income Tax Calculator?

An Income tax calculator is an online tool that helps you calculate taxes payable based on your income after the announcement of the Union Budget. Based on the taxable income bucket you fall under a certain portion of your net annual income needs to be paid as income tax.

Income tax calculation becomes very easy with our tax calculator. We ensure you get a precise value of payable tax through our income tax calculator, which have been updated according to the latest income tax rates and tax rules.

Individuals can calculate their Total Income Tax Liability precisely with the help of an online income tax calculator. Income tax calculator takes into consideration factors such as your age, income, expenses, applicable tax deductions and existing investments to estimate tax liability under the old or new income tax regime.

How to Use the Income Tax Calculator?

To use income tax calculator, follow the steps given below:

a) Select your age bucket. Your applicable tax slab rate will be applied based on your age.

b) Enter your annual income. Your annual income consists of your salary, bonus, and other relevant variable components.

c) Go to ‘Investment Details’ field.

d) Enter your investment amount under section 80C, 80CCC, 80CCD (1)

e) Enter your medical insurance premium paid u/s 80D in case you have a health insurance

f) Enter additional NPS Self Contribution up to 50000 under section 80CCD(1B)

g) Enter employer Contribution for NPS under section 80CCD (2)

Once done, you shall be able to view a summary of your annual income, investments, taxable income, and the amount of tax payable as per the latest tax regimes and calculations.

Note: You can enter "0" for any field that may not apply to you.

Understanding Income Tax Slabs

The Indian income tax system is based on a slab system under which individual taxpayers are taxed. Various tax rates are applied to individuals as per their income levels. To put it another way, the more your income, higher the tax you pay.

Here are three categories under which individuals are supposed to pay tax:

  1. Individuals below 60 years of age
  2. Resident Senior Citizens who are 60 to 80 years of age
  3. Resident Super Senior Citizens who are more than 80 years of age

a) Income Tax Slabs & Rates for Individuals below 60 years:

1st Option 2nd Option
Old Income Tax Slab Regime New Income Tax slab Regime
Taxable Income Tax Rates Taxable Income Tax Rates
Up to Rs 2,50,000 NIL Up to Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 2,50,001 - Rs 5,00,000 5% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Rs 5,00,001 - Rs 10,00,000 20% Rs 10,00,001 - Rs 12,50,000 20%
Above Rs 10,00,000 30% Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

b) Income Tax Slab & Rates for Individuals between 60 years to 80 Years (Senior Citizens)

1st Option 2nd Option
Old Income Tax Slab Regime New Income Tax slab Regime
Taxable Income Tax Rates Taxable Income Tax Rates
Up to Rs 3,00,000 NIL Up to Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 3,00,001 - Rs 5,00,000 5% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Rs 5,00,001 - Rs 10,00,000 20% Rs 10,00,001 - Rs 12,50,000 20%
Above Rs 10,00,000 30% Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

c) Income Tax Slabs & Rates for Individuals above 80 Years (Super Senior Citizen)

Income Tax Slab Old Regime Slab Rates for FY 19-20 and FY20-21 New Regime Slab Rates for FY 20-21
Rs 0.0 - Rs. 2.5 Lakhs NIL NIL
Rs 2.5 - 3.00 Lakhs NIL 5% (tax rebate u/s 87a is available)
Rs 3.00 - 5.00 Lakhs NIL
Rs 5.00 - 7.5 Lakhs 20% 10%
Rs 7.5 - 10.00 Lakhs 20% 15%
Rs 10.00 - 12.50 Lakhs 30% 20%
Rs 12.50 - 15.00 Lakhs 30% 25%
> Rs 15.00 Lakhs 30% 30%

Income Tax Deductions Available

Salaried employees are often issued Form 16 from their employers, which details out the total salary and taxes deducted on it. While Form 16 can become a reference point for you to calculate taxes, income generated from other sources like interest on deposits, investments, and rental income, have to be all incorporated in the tax calculation.

When using the tax calculator, keep the following rebates/deductions/exemptions available under the income tax law in mind:

  1. Under Section 87A, individuals with income below Rs. 5 Lakh can claim a tax rebate of up to Rs. 12,500.
  2. Under Section 80C, you can claim a deduction of up to Rs. 1.5 Lakh through investment in any tax-saver Fixed Deposit, PPF, NSC, ULIP, or ELSS on the interest income.
  3. Under Section 80CCD (1B), one can claim a deduction of up to Rs. 50,000 for money deposited in the NPS.
  4. Under Section 80D, deduction of up to Rs. 25,000 is available on medical insurance premium bills. It is Rs. 50,000 for senior citizens.
  5. Under Section 80G, donations made to a charitable organisation are eligible for deduction from taxable income.
  6. Under Section 80E, you can claim a 100% deduction for up to 8 years on the interest on an education loan.
  7. Under Section 80TTA/80TTB, the interest income from savings accounts is eligible for tax waivers up to Rs. 10,000 and up to Rs. 50,000 for senior citizens.
  8. Under Section 80GG, the income spent towards paying house rent (house rent allowance) is allowed as a deduction.

Benefits of Using Income Tax Calculator

An income tax calculator can simplify your tax estimate and help you account for every possible tax saving option. The best part is that you can use this online ITR calculator anytime during the financial year to readjust your tax-saving investments and tax liabilities.

Here are all the benefits of an income tax calculator:

  1. Easy to use
  2. Available anytime
  3. Simplifies tax calculation
  4. Helps you identify deduction options
  5. Advance calculation of possible tax liability

How to Calculate Income Tax?

Income tax calculator helps calculate tax liability with ease and 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 –

  1. Annual income from salary or profits
  2. Income from other sources like investments, rental income, etc.
  3. Tax deductions and exemptions applicable
  4. House rent allowance and transport allowance

Income tax is calculated for different individuals based on their respective tax slabs. Finally, the total payable tax is calculated after subtracting the deductions and other taxes that 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 Tax Calculation Example

Income from salary is the aggregate of Basic salary, HRA, Transport Allowance, Special Allowance etc. Your salary components such as HRA, Rent, LTA, Telephone bills etc are exempt from tax. In addition, a standard deduction of Rs 50,000 is also exempt from tax. You cannot avail of these exemptions if you opt for new tax regime.

We can understand income tax calculation with the help of an example.

Basic Salary: Rs.1,00,000 per month

HRA: Rs.50,000 per month

Special allowance: Rs.21,000 per month

Leave Travel Allowance: Rs.20,000 per year

Rent Paid: Rs.25,000 per month

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 3,60,000 2,40,000 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 -
Gross Total Income from Salary 16,50,000 20,72,000

To calculate Income tax, include below-mentioned income from all sources:

  • Income from salary
  • Rental income or interest paid for a home loan
  • Income from your business (profession, business, or freelancing)
  • Income from capital gains (Income generated from selling house or shares)
  • Income from other sources (Income generated from a fixed deposit account, savings account, or bonds)

Interest earned from Savings Account: Rs.12,000

Interest earned from Fixed Deposit: Rs.8,000

PPF: Rs.50,000

ELSS: Rs.20,000

LIC Premium: Rs.9,000

Medical Insurance: Rs.12,000

EPF Contribution: Rs.1,44,000 (Rs 1,00,000 *12% *12 = 1,44,000)

Component Maximum Deduction Eligible investments/expenses Amount claimed
Section 80C Rs.1,50,000 PPF Rs 50,000 + ELSS Rs 20,000, LIC Rs 9,000 + EPF Rs 1,44,000 Rs 1,50,000
Section 80D Rs.25,000 (self) Rs.50,000 (parents) Rs 12,000 Rs 12,000
Section 80TTA 10,000 Rs 8,000 Rs 8,000

Calculation of Gross Taxable Income in India under Old Regime

Component Amount Total
Income from Salary 16,50,000
Income from Other Sources 20,000
Gross Total Income 16,70,000
Deductions
80C 1,50,000
80D 12,000
80TTA 8,000 1,70,000
Gross Taxable Income 15,00,000
Total tax on above (including cess) 2,73,000

Calculation of Gross Taxable Income in India under New Regime

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) 3,79,704
Component Percentage Deduction Taxable amount
0 to 2,50,000 Exempt from tax 0
Rs 2,50,000 to Rs 5,00,000 5% (5% of Rs 5,00,000 less Rs 2,50,000) 12,500
Rs 5,00,000 to Rs 7,50,000 10% (10% of Rs 7,50,000 less Rs 5,00,000) 25,000
Rs 7,50,000 to Rs 10,00,000 15% (15% of Rs 10,00,000 less Rs 7,50,000) 37,500
Rs 10,00,000 to Rs 12,50,000 20% (20% of Rs 12,50,000 less Rs 10,00,000) 50,000
Rs 12,50,000 to Rs 15,00,000 25% (25% of Rs 15,00,000 less Rs 12,50,000) 62,500
More than Rs Rs 15,00,000 30% (30% of Rs 20,92,000 less Rs 15,00,000) 1,77,600
Cess 4% of total tax (4% of Rs 12,500 + Rs 25,500+ Rs 37,500 + Rs 50,000 + Rs 62,500 + Rs 1,77,600) 14,604
Total Income Tax Rs 3,79,704

Tax Exemptions that Are Disallowed Under New Tax Regime

1. Leave travel concession (LTC) applicable for salaried employee

2. House Rent Allowance (HRA) applicable for salaried employee

3. The standard deduction applicable for persons in employment against salary income cannot be claimed when the taxpayer who opts for section 115BAC.

4. Deductions under Section 80C like Life Insurance Premium, Sum Paid towards deferred annuity plans, your contributions towards EPF, PPF, Superannuation Scheme, SSY, NSC, ELSS Mutual Funds, Tuition Fees, Principal Payment towards your home loan, Tax Saving FDs, SCSS, Contribution to NPS Tier 2 by Central Government Employees, NPS contribution by you (Under Section 80CCD(1) and Section 80CCD(1B).

5. Deduction under Section 80D: Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurers to effect or keep in force an insurance on the health of a specified person.

6. Section 80DD: Deduction in respect of maintenance including medical treatment of a dependant who is a person with a disability.

7. Section 80DDB: Expenses actually paid for medical treatment of specified diseases and ailments.

8. Section 80E: Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education.

9. Section 80EE: Interest payable on loan taken up to Rs. 35 lakhs by the taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value doesn’t exceed Rs. 50 lakhs.

10. Section 80EEA: Interest payable on loan taken by an individual, who is not eligible to claim deduction under section 80EE, from any financial institution during the period beginning from 1st April 2019 ending on 31st March 2020 for the purpose of acquisition of a residential house property whose stamp duty value doesn’t exceed Rs. 45 lakhs.

11. Section 80EEB: Interest payable on loan taken by an individual from any financial institution during the period beginning from 1st April 2019 and ending on 31st March 2023 to purchase an electric vehicle.

12. Section 80GG: Rent paid for furnished/unfurnished residential accommodation

13. Section 80G: Deduction in respect of donations to certain funds, charitable institutions etc

14. Section 80GGA: Deduction in respect of certain donations for scientific research or rural development

15. Section 80GGC: Deduction in respect of contributions given by any person to political parties

16. Section 80JJA: Deduction in respect of profits and gains from business of collecting and processing of bio-degradable waste

17. Section 80TTA: Interest on deposits in savings account with a banking company, a post office, co-operative society engaged in the banking business, etc.

18. Section 80TTB: Interest on deposits with a banking company, a post office, co-operative society engaged in the banking business, etc. for senior citizens

Two Income Tax Slabs FY 2021-22 (AY 2022-23)

From the Assessment Year 2021-22 (Financial Year 2020-21), you have a choice of tax slabs you can follow. Though the choices may sound confusing, it is simply based on your investment habits.

  1. If you are investing money on tax saving options you can follow the old tax regime and claim deductions, including loss from house property in the same financial year
  2. If you do not invest in tax-saving investments and want to continue investing in your preferred options, you can follow the new tax regime

The tax-regime options seem to be only an experiment to assess the popularity of tax-saving investments. As your tax liabilities can be almost identical under both regimes if you select your slabs as per the conditions above.

For example, if you have a taxable income of Rs 10 Lakhs in the FY 2020-21, your maximum tax-saving investments could be about Rs. 2 lakhs including section 80C and 80D. Thus, your taxable income will be Rs. 8 lakhs and tax liability around Rs. 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 Rs 75,000.

Income Tax Slabs FY 2021-22 (AY 2022-23)

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

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.

How Does Income Tax Slabs Work?

If your total taxable income in the FY 2020-21 had been Rs 15 lakhs here’s how it’ll play out without any tax-saving investments:

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 12,500 12,500
INR 5,00,001 to INR 7,50,000 +25,000 +50,000
INR 7,50,001 to INR 10,00,000 +37,500 +50,000
INR 10,00,001 to INR 12,50,000 +50,000 +75,000
INR 12,50,001 to INR 15,00,000 +62,500 +75,000
Above INR 15,00,000 - -
Total Tax Payable (before Cess*) 187,500 262,500

* 4% health and education cess applicable on the payable income tax amount

However, if you have the following investments or expenses, you can lower your income tax outflow under the old regime:

  • Life insurance premiums
  • Provident or Pension fund investments
  • New Pension Scheme Tier-I subscription
  • Investment in Equity Linked Savings Schemes (ELSS) from mutual funds
  • Unit Linked Insurance Plan (ULIP) investments
  • Child’s school/college tuition fees
  • Health insurance premium payment for family
  • Principal and interest repayment on home loan
  • Interest payment on education loan
  • Paid rent for a residential house
  • Medical insurance premium or treatment expenses for a senior citizen parent

These expenses and investments help you reduce your taxable income, thus, reducing the total applicable tax.

Income Tax Calculator FAQs

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:

  1. Agricultural Income
  2. Income from provident funds
  3. Income from gratuity
  4. Scholarship
  5. Awards or rewards by Government
  6. Gifts received from relatives
  7. Capital Gains
  8. Tax-free interest income from banks or post office

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:

  1. Bank account details
  2. PAN details
  3. Rent receipts for claiming HRA
  4. Salary or Pay slips
  5. Form 16
  6. Deductions claimed under Section 80
  7. Tax payment details such as TDS and advance tax payments
  8. Income proof for income received from investments like Fixed Deposits, savings account

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.

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 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.

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