Income Tax Calculator

The income tax calculator is an effective tool to calculate and manage total taxable income to file taxes within the specified time frame. Using an income tax calculator helps pre-plan the income tax as it is a critical aspect of financial planning in India. Understanding how income tax works and using the tax calculator to calculate your income tax correctly is important. 

Income

Deductions

HRA Exemption

  • Total Tax (Old Regime)
  • 0
  • Total Tax (New Regime: FY 22-23)
  • 0
  • Total Tax (New Regime: FY 23-24)
  • 0

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An income tax calculator is a tool that helps you calculate your taxes based on the information you provide. With India’s complicated tax regulations, it can be very helpful to use a personal income tax calculator to make sure all of your deductions and credits are taken into account when filing your taxes.

Think of it like an individual income tax calculator for your taxes. It takes into account your income, deductions, and other tax-related information to give you an estimated amount of taxes that you will owe. This can help you plan ahead for future taxes and estimate how much money you need to save or invest in order to pay them.

For instance, you can use an income tax return calculator to estimate how much income tax you will owe on a given amount of income. This can also help you plan for the future, as it helps you determine which deductions are applicable to your situation and how they affect your total tax liability.

If you are a salaried individual or self-employed, you can use the online income tax calculator to determine your taxable income and calculate taxes accordingly. The total income tax calculator
takes into account all applicable deductions such as house rent allowance or transport allowance, medical reimbursement, etc.

The income and tax calculator can also be used to estimate capital gains on the sale of stocks, bonds, and other investments. It will help you figure out how much tax you will owe on these investments when you file your returns. This is especially useful if you have made investments over multiple years and want to see what kind of taxes are applicable for each purchase or sale transaction.

In short, an individual income tax calculator is a great way to make sure that you are filing your taxes correctly and paying the correct amount of taxes. It is important to keep in mind, however, that the actual amount you owe may vary from what the new income tax calculator estimates due to changes in your financial situation or other factors. Therefore, it is best to use the calculator as a guideline and consult with a qualified tax professional if you have any questions.

Using the income tax deduction calculator is a simple process. All you need to do is enter your basic information, such as name, address, PAN number, and other relevant details. Then, you will be asked to enter the amount of income that you have made during the year, along with any deductions or credits that may apply. Once this information has been entered, the personal income tax calculator will generate an estimated total of taxes owed.

Here's a step-by-step guide on how to use the salary income tax calculator:

1. Go to your preferred online income and tax calculator website and fill in your basic details (name, address, PAN card number, etc.)
2. Select the fiscal year for which you wish to calculate your taxes.
3. Whether you are an adult or a senior citizen, make sure to select your age group accurately. India's taxation system differs depending on the various age groups and is essential for determining tax liability.
4. To find out how much taxes you need to pay according to the old tax slabs, enter your taxable salary. Your taxable income would be after subtracting exemptions such as HRA, LTA, and standard deductions.
5. In addition to salary, all other sources of income, such as interest earnings and rental fees must be specified. Furthermore, individuals who have taken out home loans for a rented property or their self-occupied residence should include the amount of interest paid on each loan.
6. Calculate the net income ( Sale consideration minus Cost of Acquisition), and this amount is subject to a 30% tax rate, in addition to applicable surcharge and cess.
7. If you wish to assess your taxes based on the pre-existing tax slabs, it is essential that you input all of your tax-saving investments into Section 80D, 80C, 80E, 80G, and even 80TTA. This will ensure that your calculations are accurate and provide an efficient way for filing taxes!
8. Finally, click on the calculate button and view the total amount of taxes due for the relevant income.
 

The Income Tax Department has created different tax slabs to levy tax on various income limits for individuals in a financial year. The Indian government reviews the tax slabs annually in the annual budget, and citizens have to file taxes based on the current tax slabs. As per the Income Tax Act 1961, the government has specified the following three categories of Indian taxpayers: 

●    Residents and non-residents below 60 years of age
●    Senior citizen residents between 60-80 years of age
●    Super senior citizen residents above the age of 80 years

The Indian government has introduced a new regime for income tax along with the old tax regime to allow individuals who do not claim tax deductions to save tax. For the old regime, individuals can use the traditional income tax calculator, while for the new tax regime, they can use the new tax regime calculator. However, before using the income tax calculator 2023, it is important to understand how the income tax liability is calculated. Here is an example: 

Aashita has the below income structure for the current assessment year and claims a tax deduction of Rs 1,50,000 under Section 80C with income from house rent of Rs 20,000. 

Nature

Amount

Exemption

Taxable (Old Regime)

Taxable (New Regime) 

Basic Salary

12,50,000

 

12,50,000

12,50,000

HRA

5,00,000

3,00,000

2,00,000

6,00,000

LTA

30,000

15,000

15,000

30,000

Standard Deduction

 

50,000

50,000

50,000

Gross Total Income From Salary

 

 

15,15,000

19,30,000

 

Tax under the old regime: 

Nature

Amount

Total

Income from salary 

15,15,000

 

Income from other sources

20,000

15,35,000

Gross Total Income

 

 

Deductions 

1,50,000

 

Gross Taxable Income

 

13,85,000

Total Tax 

 

4,15,500

 

Tax under the new regime 

Nature

Amount

Total

Income from salary 

19,30,000

 

Income from other sources

20,000

19,50,000

Gross Total Income

 

 

Deductions 

NIL

 

Gross Taxable Income

 

19,50,000

Total Tax 

 

5,85,000


 

Any individual whose taxable income is greater than the basic exemption limit (Rs. 2,50,000 for the fiscal year) needs to file income tax returns. Moreover, the following categories of people must also compulsorily file their taxes:

● Individuals with any kind of foreign income;
● Any assessee who has received an advance tax or self-assessment tax;
● Business owners and professionals;
● Assessees receiving any type of salary from more than one employer during a financial year;
● People who are earning capital gains from shares or mutual funds.

Therefore, it is essential that all individuals meet the eligibility criteria for filing taxes in India to avoid incurring penalties.

Using an online salary income tax calculator in India is the most convenient way to estimate your taxes accurately. Some of the major benefits of using an online income tax calculator app are:

1. Instant results: Income tax deduction calculator provides an immediate and accurate calculation of taxes, thereby saving time and effort.
2. Error-free calculations: An online calculator for income tax takes into account all factors, such as deductions, exemptions, etc., eliminating the possibility of any manual error during the process.
3. Simple-to-understand reports: The reports generated by these income tax return calculator are easy to understand and interpret, which helps in simplifying complex taxation procedures.
4. Saves money: By filing taxes correctly and on time, individuals can save a significant amount of money, as they will avoid any fines or penalties.
 

The Indian government introduced a new tax regime in the Union Budget 2020 for individuals who do not claim extensive deductions while filing taxes. Now you can choose between the old and the new tax regime while using the income tax calculator for AY 2023-24 or filing taxes. Here is the income tax slab for the AY 2023-24 calculator, which one can use to either calculator or file taxes using either of the regimes: 

 

Tax slabs under the old regime: 
 

Tax Slab

Tax Rate

0-2.5 lakh 

0%

2.5 lakh - 5 lakh

5%

5 lakh - 10 lakh

20%

10 lakh and above

30%

 

Tax slabs under the new regime: 

Tax Slab

Tax Rate

0-3 lakh 

0%

3 lakh - 6 lakh

5%

6 lakh - 9 lakh

10%

9 lakh - 12 lakh

15%

12 lakh - 15 lakh 

20%

15 lakh and above 

30%

Under the old tax regime, individuals can claim various deductions and exemptions provided under the Income Tax Act, such as deductions for investments in instruments like EPF, PPF, life insurance premiums, home loan interest, education loans, and deductions for medical insurance premiums, among others. However, such deductions are not available in the new tax regime. 

The new tax regime introduced by the government has changed many of the earlier deductions and exemptions. Some of these are listed below:
 

1. Leave travel allowance (LTA) is not allowed as a deduction under this regime;
2. The standard deduction, which was previously available up to Rs 40,000, is no longer valid;
3. Investments in Public Provident Fund (PPF), National Pension System (NPS), and Equity Linked Savings Scheme are also excluded from deductions;
4. Deductions for house rent allowance (HRA) have been reduced to certain limits based on the city where you live;
5. Deduction for medical insurance premiums has been limited to Rs 25,000;
6. Exemptions for interest income through savings accounts and fixed deposits have been eliminated.
 

Senior citizens over 60 years old also have the option to pay income tax by choosing between the old and the new tax regime. Here are the tax slabs under both the income tax regime, which they can use to calculate tax using an income tax calculator ay 2022-23. 

Tax slabs for senior citizens under the new and old tax regimes.

Tax Slab

Tax Rate

Up to Rs 3,00,000

0%

Rs 3,00,001 to Rs 5,00,000

5% of income over Rs. 3,00,000 + 4% cess

Rs 5,00,001 to Rs 10,00,000

Rs. 10,000 + 20% of income over Rs. 5,00,000 + 4% cess

Above Rs 10,00,000

Rs. 1,10,000 + 30% of income over Rs. 10,00,000 + 4% cess

 

Income Tax Slabs for Super Senior Citizens above 80 years
Here are the tax slabs under the income tax regime for super senior citizens, which they can use to calculate tax using an income tax calculator online.

Tax Slab

Tax Rate

Up to Rs 3,00,000

0%

Rs 3,00,001 to Rs 5,00,000

5% of income over Rs. 3,00,000 + 4% cess

Rs 5,00,001 to Rs 10,00,000

Rs. 10,500 + 20% of income over Rs. 5,00,000 + 4% cess

Above Rs 10,00,000

Rs. 1,10,000 + 30% of income over Rs. 10,00,000 + 4% cess

 

Salaried individuals in India can avail of various tax exemptions under the Income Tax Act. Here are some commonly available tax exemptions for salaried individuals, which they can calculate using tax calculator 2023.

●    House Rent Allowance (HRA): If you receive HRA as part of your salary and live in a rented house, you can claim exemptions on the HRA amount.

●    Leave Travel Allowance (LTA): LTA is a benefit provided to employees for travel expenses incurred during a leave period.

●    Standard Deduction: A standard deduction of Rs. 50,000 is available for salaried individuals, which can be claimed irrespective of any expenses incurred.

●    Medical Allowance: An exemption of up to Rs. 15,000 per year can be claimed for medical allowances received as part of the salary.
 

Here are the documents required to file the income tax online after calculating the income tax liability using an income tax calculator: 

Pan Card

Aadhar Card

Form 16

Month-wise salary slips

Form-16A/ Form-16B/ Form- 16C

Bank Account details

Bank Statement/Passbook

Investment Proofs (Deductions and investments that can be claimed under sections 80C, 80D, 80E, 80TTA, etc.)

Form 26AS

Interest Income and Other Interest Certificates

Capital Gains from Sale of Property, Mutual Funds, Shares

Details of Investment in Unlisted Shares

Home Loan Statement

Foreign Income/Dividend Income

Rental Income

Here are some of the most common terms used in tax calculation: 

●    Assessment Year: Assessment Year (AY) refers to the year in which the income earned during the previous financial year (April 1 to March 31) is assessed and taxed by the Income Tax Department in India. It is the year immediately following the financial year for which the tax is being calculated.

●    Financial Year: The Financial Year (FY) is 12 months beginning on April 1st and ending on March 31st. It is when an individual or entity earns income and incurs expenses and determines the period for which income is assessed and taxed. 

●    Previous Year: The Previous Year (PY) is the year immediately preceding the Assessment Year (AY). It is the period during which an individual or entity generates taxable income. The income earned and expenses incurred in the Previous Year are assessed and taxed in the subsequent Assessment Year. 

●    Deduction: In income tax, a deduction refers to an amount that one can subtract from the total income, which helps reduce the taxable income and, consequently, the tax liability. Deductions are allowed under various sections of the Income Tax Act and are meant to encourage specific expenditures or investments and provide certain benefits to taxpayers.

●    Exemption: An exemption refers to an amount of income exempt or not subject to tax. It is a provision under the Income Tax Act that allows certain types of income or specific individuals to be exempt from tax liability. Exemptions can vary depending on the nature of income or the category of taxpayers.
 

Frequently Asked Questions

One of the best ways to calculate your income tax liability is by using an income tax calculator online. While using an income tax calculator ay 2023-24, you can determine your total tax liability by filling in specific details about the income generated and the applicable deductions and tax slabs. 
 

Professional tax is a state-level tax imposed on individuals who earn an income through their profession, employment, or business. It is governed by the respective State Governments in India. The professional tax applies to employees, self-employed individuals, and professionals such as doctors, lawyers, consultants, etc. You can calculate the professional tax by using an income tax calculator. 
 

If you opt for the old or new tax regimes, you must pay 30% of the amount as income tax (Rs 7,20,000) per both regimes. 
 

Numerous incomes are not taxed in India; these are: agriculture income, interest on the savings bank account, dividend income, scholarships, house rent allowance, etc. 
 

The maximum non-taxable income limit is Rs 2.5 lakh for all individuals, HUFs, and NRIs. 
 

The income earned by NRIs or foreigners in India is required to be taxed as per the Indian tax laws. However, if they earn income outside India, they do not have to pay taxes in India. 
 

Yes. TDS is refundable on salary if the amount deducted by the employer is higher than the employee’s actual tax liability. 
 

You can calculate your tax liability using an income tax calculator online for the current assessment year. 
 

Tax applies to the net or taxable income rather than the gross salary. The taxable income is derived after deducting eligible deductions and exemptions from the gross salary.
 

If you earn interest on your savings bank account up to Rs 10,000, it is exempt from tax. However, any interest higher than Rs 10,000 is taxable as per the applicable tax slab. 
 

You can file your income tax returns anytime before the due date, which is usually in July.
 

An exemption is an amount that you are not taxed on, whereas a deduction reduces the income on which you must pay tax. For example, interest earned from savings accounts and fixed deposits is exempt from taxes, while investments in the Public Provident Fund (PPF) and National Pension System (NPS) qualify for deductions.

The budget has introduced a new tax regime with lower rates and fewer deductions. This includes reducing the income tax slabs, eliminating many of the earlier deductions and exemptions, introducing relaxed rules for filing returns, and more.
 

Disclaimer: The calculator available on the 5paisa website is intended for informational purposes only and is designed to assist you in estimating potential investments. However, it is important to understand that this calculator should not be the sole basis for creating or implementing any investment strategy. View More..

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