Income Tax Calculator

Individuals and Hindu Undivided Families falling under certain income tax slabs are liable to pay income tax every financial year. For this, you should know how to calculate income tax. While you can do a manual assessment, this may lead to errors. Bajaj Housing Finance brings you a simple digital income tax calculator that you can use with ease. This online tax calculator is an easy and convenient tool designed to give an approximate figure of how much tax you need to pay. The income tax liability it determines depends on the inputs you enter such as your income, exemptions, and deductions.

Use the easy tax calculator to save time and help you with your taxes. An online income tax calculator is simple to use and easy to access. All you need to do is choose the assessment year you need to calculate income tax for. Enter or select basic details like your gender and whether you are a senior citizen or a super-senior citizen. Enter your income, deductions, and HRA exemptions. Submit all the required details. That’s it! The I-TAX calculator will process the information and give you results in seconds.

An income tax calculator is an easy digital tool that helps you determine your income tax liability for a given financial year. It takes into consideration factors like your age, overall income, deductions, and payments towards home loans, and calculates your tax payable accordingly.

Calculating your tax liability manually is a complex process, mainly due to the various tax laws associated. This is why using a tax calculator for I-Tax calculation can be a smart way to save time and minimise errors too. You can also access it from any computer or smart device, making it the most convenient way to know the tax you owe to the government.

To compute your income tax using an online tax calculator, usually you need to follow the following steps.

• Choose the assessment year to calculate the tax
• Select your age and gender (The tax rate may differ if you are a senior citizen or super senior citizen)
• Click on the ‘income field’ button and enter the details of your gross income with no deductions. Also, make sure you fill in the data of the following.

• 1. Your gross income from other sources such as income from rent
  2. Interests paid on a housing loan

• If you are claiming deductions under the following sections, fill in the relevant details.

• 1. 80CCD (1B)
  2. 80C
  3. 80D
  4. 80E
  5. 80G
  6. 80GG
  7. 80TTA
  8. 80TTB
  9. 87A

In this step, also make sure you provide the details of the interests paid if you have an education loan. Further, mention the deposits on your savings account.

• Here, fill in the details of exemption in HRA such as your basic salary, HRA, DA and gross rent you have paid annually
• In the last step, select your location and click on the calculate button

Here is a breakdown of the two tax regimes and their income tax slab rates, as per Union Budget 2022-23.

For Citizens Under the Age of 60:

For Senior Citizens With Ages Over 60 But Below 80:

While determining the total income tax payable through online I-Tax calculation, enter the accurate data about the following in the tax calculator.

• Your gross yearly income from profits/salary
• Income from investments, rent, and other sources
• Tax exemptions if they are applicable
• Transport allowance and house rent

Once you fill these, you will be able to see your total income tax liability. If TDS is automatically deducted from your salary, you can check form 26AS which functions as a TDS calculator.

Simply subtract the TDS from the total income tax liability to get the amount you need to submit online via Challan 280. If you pay more than the total tax liability, the government reimburses the difference within a month of filing your income tax.

In case you file the IT returns after the due date, you will have to pay a penalty under section 234F and interest under section 234A. The due dates can vary on the basis of your source of income. If you are employed and are earning a salary, your due date of filing income tax returns is July 31 of the assessment year.

An easy way to save on taxes is to make investments. At Bajaj Housing Finance, we help you fulfil your financial and personal goals by offering a home loan and loan against property at affordable interest rates.

How is Income Tax Calculated?

Learning how to calculate income tax is an important skill to have. Here is how income tax is calculated:

• Calculate or ascertain your gross income from your salary, house property, or capital gains
• Calculate your net taxable income by subtracting exemptions and deductions such as deductions on investments and insurance.

To compute the tax, calculate eligible gross exemptions and gross income tax for the financial year. Exclude any credits you may be eligible for. You should know about various components of income tax before you calculate your tax. Income tax is calculated on taxable income based on the applicable income tax slab. The easiest way to arrive at an accurate figure is to use the income tax calculator to calculate your income tax.

Which Income is Not Taxable in India?

Several types of income are exempt under the Income Tax Act 1961. These are known as tax-free income sources. Here are a few of these that you should be aware of:

• Agricultural income
• Dividend income from shares and mutual funds
• Payment received on voluntary retirement or during separation
• Money received from government-recognized provident fund
• Any amount of gratuity received by a government employee
• Any payment in commutation of pension
• Receipts from Hindu Undivided Family
• Share from a partnership firm or LLP
• Certain sources or receipts earned by NRIs
• Income and receipts earned by foreigners in India

If you are eligible for income tax, use the IT calculator to determine the income you are liable to pay.

What is the Maximum Non-Taxable Income Limit in India?

The maximum non-taxable income limit for individuals, Hindu undivided families is Rs.2.5 lakh. Additionally, a tax rebate of Rs. 12,500 is offered to people with income below Rs.5 lakh from the financial year 2020-21 onwards. This tax rebate u/s 87a was introduced under the income tax slab rate for the new tax regime FY 2020-21. The non-taxable income for senior citizen women between the age of 60 and 80 years is up to Rs.3 lakh. However, the non-taxable income for super senior citizen women aged above 80 years is up to Rs.5 lakh.

What are the Details You Need for E-filing Your Income Tax Returns?

You need the following details and documents for e-filing your income tax returns:

• Details of your Aadhaar card, PAN card number, and proof of your current address
• Details of all the bank accounts under your name for the particular financial year
• Proof of income such as salary slip, details of income from investments such as interest on the savings bank account, FDs, etc.
• All the deductions claimed under section 80 or chapter VI-A of the Income Tax Act
• Details of tax payments like advance tax payments and TDS

For your convenience, keep all the necessary documents ready. Calculate advance tax and use the TDS calculator for ITAX calculation.

What are the Benefits of Filing Income Tax Online?

There are several benefits of filing income tax online. Some of these benefits are listed below:

• It facilitates electronic tax refunds
• It minimises errors
• It acts as proof of income and address
• It assists you in carrying forward losses
• It is easier to avoid the late penalty by filing online
• Filing income tax online is much safer and is confidential
• You may get insurance, and benefit with VISA processing
• Filing income tax online is much quicker
• You get a swift confirmation receipt and provides real-time updates
• It saves you money which you would have spent on professionals to file income tax

For your assistance, use the TDS calculator for tax computation

Income Tax Calculation Formula

You get your taxable income amount after adding income from all sources. Subtract deduction and exemptions from the total gross income. Also, consider any TDS or advance tax paid. The income tax is calculated based on the applicable tax slab. Under the new tax regime calculator, you forgo exemptions and deductions like HRA, LTC, and deductions under 80C, 80D, 80E, 80G, etc. You are taxed at concessional tax slab rates and cess is added to arrive at total income tax. To get gross total income, add income from other sources such as income from business or investments to your income from salary.

How to Calculate Advance Tax?

Advance tax is payable if you have income sources other than salary. This includes rent, capitals gains, lottery winning, and more. To calculate advance tax, apply the income tax slab rate applicable in the financial year. Follow the steps below:

• Estimate the income from capital gains, professional income, rent, and other income
• Add income from salary to the above total to arrive at gross taxable income
• Apply the income tax slab applicable to you
• Deduct the TDS as per the TDS slab

You are only liable to pay advance tax if your tax liability exceeds Rs. 10,000 after deducting TDS.