Income Tax Calculator
Use Our online Income Tax Calculator India to calculate Income tax for AY 2022-23 on the basis of tax slab. Quickly estimate your Income Tax and tax refund amount.
What Is Income Tax?
Income tax can be defined as the total tax that is payable on the income that is earned by an individual in a specific fiscal year. Most governments of different countries impose some kind of tax on the total income earned by individuals and entities that lie within their jurisdiction. It is important to note here that this is the fundamental source of funds for governments through which they finance all kinds of activities.
Hence, all individuals and businesses need to file a tax return each year in order to determine if they are eligible for any refund or owe any tax to the government.
What Are The Income Tax Salary Slabs In India?
India has a slab system on taxes according to the tax rates that are fixed in the budget. When it comes to salaried people, these tax slabs can be divided into three major categories:
- Earners or individuals below 60 years of age
- Senior citizens between the age group of 60 and 80 years
- Senior citizens over 80 years
Income Tax Return
An income tax return is a return you file to determine if you owe any taxes to the government or are eligible for any tax refund. The income tax that you must pay is dependent on some parameters, including the income type, your age, the total amount of your income as well as all the investments that are counted under tax deduction.
It is also noteworthy that employers typically deduct income tax. Hence, if you declare all your taxes in advance, you will not have to apply for any tax refunds at a later stage.
An income tax return can essentially be defined as a tax form that is prescribed by the department of income tax. It typically has a set format in which income figures are used to calculate an individual’s tax liability.
You must file these returns on a yearly basis for the income you have earned as a business or an individual in a specific financial year. In addition to that, there is a specific date before which you must file the income tax return.
If, according to the return, you have paid excess tax in a specific year, you can also be eligible to receive a tax refund. That said, this is subject to the interpretations and calculations of the department. For the fiscal year 2019-2020, the due date by which individuals must file their income tax return is 31st July 2020. For businesses, the due date is 31st October 2020.
A financial or fiscal year can be defined as the complete year in which you must pay your tax liabilities on the total income earned. The financial year in India begins on 1st April in a specific year and goes on till the 31st March of the next year. However, the due date this year has been extended due to the ongoing pandemic.
How To Calculate Income Tax Liability?
Computing your income tax is super easy now as you can simply make use of the online income tax calculator. This online calculator makes it a piece of cake to gauge precisely how much tax you owe in the current financial year.
The income tax in India is calculated in the following manner:
The gross salary that you earn comprises your basic salary, special allowance, HRA, transport allowance as well as other relevant allowances. From this, it is possible for you to claim a tax deduction on certain elements such as telephone bill reimbursement, medical reimbursements, or HRA in case you reside in a rented property.
When it comes to the transport allowance, you get an exemption limit of INR 1600 monthly or INR 19200 yearly.
Hence, you can claim a total tax deduction of INR 19200 in a year.
How To Use Online Income Tax Calculator?
Using the online income tax calculator is super easy and effortless. You can simply visit any online portal of income tax calculator and insert the information asked therein to get the desired results. Please note that you will be required to input your total salary from different sources in order to get accurate results. Hence, it will be better if you already have all the desired details at hand for a quick calculation of your income tax.
Benefits Of Using The Income Tax Calculator
As discussed above, there are a lot of benefits of using the income tax calculator. In this section, we see a few of the most important ones:
The best part about using an online income tax calculator is that it saves a lot of time. You do not have to do any manual calculations that could take you hours to compute. You can simply use this online calculator to calculate your income tax in a matter of minutes.
Another great thing about the online income tax calculator is that you can guarantee accurate results and zero errors. Since the algorithms are already in place in online calculators, you do not have to worry about any mistakes. This means that there are no do-overs needed when you compute your income tax online. Just do it once, and that is it!
Helps Avoid Delays
Finally, an income tax calculator is a perfect aid to avoid delays in filing your income tax return. Since you will have all the details at hand, including the income tax you owe to the government in a specific fiscal year, you can avoid any late fee or unnecessary fines by filing your income tax return in a timely manner.
As is evident, an income tax calculator can prove to be a super beneficial asset for users as it can help you calculate your tax for a specific financial year in a quick and hassle-free manner. What’s more, the results are totally reliable and super accurate. So, you do not have to worry about any mistakes in the final results.