Income Tax Calculator: What is Income Tax Calculator and how to use it?
Income Tax Calculator
If you are a salaried man or have any income from other sources, you must pay income tax to the government every year. But how do you know how much tax you have to pay? And how can you save tax by investing in various schemes? This is where an income tax calculator can help you.
An income tax calculator is an online tool that helps you to figure out how much tax you need pay under the old and new tax regimes in India. You would have to enter some basic information such as your annual income and expenses such as rent, home loan EMIs, interest on education loans, tuition fees, investments etc., to get the results.
The income tax calculator also shows you the difference between the old and the new tax regimes, so that you can choose the one that suits you better. The old regime allows you to claim various deductions and exemptions, while the new regime offers you lower tax rates but with fewer deductions.
How to use the Income Tax Calculator for FY 2023-24?
Using the income tax calculator is very easy and quick.
Steps to use Income Tax Calculator:
1. Choose the financial year for which you want to calculate the tax payable. For example, if you want to calculate the tax for income earned in 2022-23, select FY 2023-24.
2. Select your age group as this will determine Income Tax slab you fall in. There are different slabs for different age groups: below 60 years, 60-80 years and above 80 years.
3. Enter the taxable salary. Like salary after deducting various exemptions such as HRA, LTA and so on. (if you want to know your tax liability under the old tax slabs) Or else, just enter your salary i.e salary without availing exemptions such as HRA, LTA, professional tax and so on. (if you want to know your tax liability under the new tax slabs)
4. Enter your income from other sources such as the interest income, rental income, capital gains, etc. You can also enter the losses from these sources to reduce your taxable income.
5. Enter the deductions and exemptions such as 80C investments, 80D medical insurance premium, 80G donations, 80E education loan interest, etc. (if you want to calculate your tax under the old regime)
6. Click on ‘Calculate’ to get your tax liability. You will also be able to see the comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).
You can also get your tax computation on your email by entering your email address.
Direct Calculate Income Tax Link
If you want to directly calculate your income tax without entering any details, you can use this link: https://incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx
This is the official website of the Income Tax Department of India. You can select the assessment year and click on ‘Calculate’ to get your tax liability under both the regimes.
Non-Taxable Income Limit:
The non taxable income limit is the amount of income that is exempt from tax in India. For FY 2023-24, the non-taxable income limit is Rs 2.5 lakh for individuals below 60 years of age, Rs 3 lakh for senior citizens (60-80 years) and Rs 5 lakh for super senior citizens (above 80 years).
However, if your income exceeds Rs 2.5 lakh (or Rs 3 lakh or Rs 5 lakh depending on your age), you have to file an income tax return even if your tax liability is zero after deductions.
Conclusion:
Income tax calculator is a useful tool that helps you plan your taxes and save money by choosing the right regime and investments. It also helps you avoid penalties and interest by paying your taxes on time.
We hope this blog helped you understand what income tax calculator is and how to use it. If you have any questions or feedback, please leave a comment below.
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