What Is Income Tax?
Income tax is a tax imposed by the Indian government on income made by companies and citizens. Individuals must pay taxes on the percentage of their net annual income based on the rate prescribed to their taxable income group.
What Is The Income Tax Calculator?
The Income tax calculator is a simple online tool that helps you determine your taxes based on your income. It is convenient, easy to understand and can be used by anyone to calculate their tax liability.
To calculate an individual’s tax due, the calculator uses basic information such as annual income, house rent and any other savings. It shows the total amount of tax due under both the old and new regimes.The rates depend on the announcements made every year at the Union Budget.
- ‣The tool only has been designed to provide basic tax calculations and does not intent to provide full-fledged computations. The information which has been provided through these tools are strictly as per the provisions of the Income Tax Act 1961, where every effort has been made to make the calculations accurate and up-to-date as per the latest provisions of the Act. In.Corp India does not hold itself liable for any legal consequences, liabilities or any damages caused errors or omissions, negligence or any other cause which may arise from the use of information provided herein. The tool has been designed for basic informational purpose and should not be construed as a professional advice. In.Corp India does not assumes or interprets any information which has been obtained from the usage of this tool nor does it provide any warranty or guarantee of any kind either expressed or implied.
- ‣This calculator is intended to calculate the tax liability of Individuals only up to the age of 59 Years old. The amount of rent should be net of 30% deduction under section 24 of the Income Tax Act 1961. Under old regime, any person would be entitled to claim deduction under section 80C in respect of eligible payment/investment like PFF, Life insurance premium, tax savings FD, repayment of housing loan, stamp duty and registration fees paid on purchase of house etc. However, no deductions in respect of Investment/ Payment would be available under Chapter VI-A would be available under the new concession tax rate scheme. Leave Travel Allowance received is assumed to be fully taxable. Only Resident person can claim rebate u/section 87A.
- ‣The information in this summary is intended to be no more than a general overview of your tax position. In the interest of simplicity, some details have been omitted. If you need professional advice or assistance, please contact us.
How to use an Income Tax calculator?
The instructions for using the tax calculator are as follows:
- First fill in your basic details, which consist of 3 different categories.
- Income from salary.
- Income from house property.
- Income from other sources.
- After filling the basic details, you will get your Gross Total Taxable Income- Old & New Regime.
- Next step, you will have to fill in the details of your tax saving investment. These investments can be claimed as deductions from your income.
- Finally, you will be able to see your total tax amount under the Old & New Regime.
- Accordingly, you can make an informed decision.
When do you have to file your income tax returns?
Depending on my salary, how much tax should I pay?
|Income Groups||Tax Rate|
|Up to ₹ 2.50 lakh||Nil|
|Above ₹2.50 lakh and upto a maximum of ₹5 lakh||5%|
|Above ₹ 5 lakh and upto a maximum of ₹ 7.5 lakh||10%|
|Above ₹7.5 lakh and upto a maximum of ₹10 lakh||15%|
|Above ₹10 lakh and upto a maximum of ₹12.5 lakh||20%|
|Above ₹12.5 lakh and upto a maximum of ₹15 lakh||25%|
|Above ₹ 15 lakh||30%|
|Income Groups||Tax Rate||Income||Tax (in ₹)|
|Above ₹ 2.50 lakh up to ₹ 5 lakh||5%||₹ 5 lakh||₹ 25,000|