Phone NumberTo Buy: 1800-258-5899 (9 am to 6 pm)

|

Emailcustomerservice@canarahsbclife.in

|

Locate BranchLocate Branch

Income Tax Calculator AY 2021-22

Whether you choose to pay your income tax online or offline, you need to estimate your income tax liabilities beforehand, especially if you are salaried. However, future income is rarely accurately predictable. So, you estimate your possible taxes once in the beginning and then once more at the end of the financial year.

Also, you need to deposit the advance tax, which should be at least 90% of your tax liability. While this amount will be counted at the end of the financial year, advance tax estimates benefit you in the following two ways:

Income Tax Calculator AY 2021-22

Income Tax Calculator
  • Saves you from a sudden large liability at the end of the financial year
  • You can plan your investments for the year ahead

An income tax calculator can help you estimate your tax liability in advance as well as later in the financial year.

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 cannot 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

Annual Income

0

Total Investments

0

Taxable Income

0

Tax Payable

0

×

Get a Call Back

Do you want us to call back Please fill the form below

Get a Call Back

Annual Income (In Lacs)

Our Recommended Plans

TERM Insurance PLAN

TERM Insurance PLAN

Whole life cover option available

Increase your life cover with changing life stages

Return of premium & in-built protection options

Multiple premium payment options

Avail tax benefits on premiums paid as per tax laws

Invest4G

Invest 4G

8 funds and 4 portfolio strategies to invest

Loyalty additions and wealth booster

Return of Mortality Charge is available on Maturity under all three cover Options

Flexibility of switching between the fund options to take benefits of market movements or change in risk preference

Smart Junior Plan

Smart Junior Plan

Guaranteed* lump sum payouts for child's education

Multiple policy term options

Addition of regular annual bonuses

Flexible premium payment terms

Tax benefits

What is an Income Tax Calculator?

A simple online tool, an income tax calculator can help you calculate your tax liabilities for any particular financial year. Calculating the payable tax on your income becomes super easy with this tool. We ensure you get a precise value through our income tax calculator, which has 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. Using information like your annual income, any additional income, allowances, and applicable tax deductions, the tool can reflect the actual tax liability of a person.

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 calculation.

When using the 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.

How to Use the Income Tax Calculator?

Using the income tax calculator is simple if you have your basic calculations in place, then follow the following steps:

  1. Select your age group as tax liability in India differs based on the taxpayer’s age.
  2. Enter your Gross Annual Income, consisting of your salary, profits, and income from various sources.
  3. Now you must enter details of your tax-saving investments under section 80C of the Income Tax Act, including the sub-sections 80C, 80CCC, 80CCD (1), 80D, and 80CCD.

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.

How does an Income Tax Calculator help you?

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 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 Total Income Tax Liability?

Calculating income tax liability becomes easy with the income tax calculator that is regularly updated according to the latest income tax 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.

Two Income-Tax Slabs Applicable for AY 2021-22

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.

Tax Slabs AY 2021-22

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.

FAQs

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 depends on 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 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 regime, deductions are not applicable. Thus, you simply take the taxable income amount and use the new 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 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, 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.

Call BackCall Back Pay PremiumPay Premium
Chat
Back to top