Calculating your income tax in India can be a daunting task, but with the help of an online income tax calculator, it can be made much easier. An income tax calculator is an online tool that you can use to assess your tax liability in accordance with relevant tax laws. It considers factors such as your income, age, interest paid on your mortgage loan, expenses, and investments to indicate the total tax you must pay on your income under the new or old tax regime. Depending on the tax regime, the tax tables and the factors considered will vary. The online tax calculator is free, easy to use and generates error-free results instantly.
Under Section 80C, you can apply for deductions of up to Rs. 1.5 lakhs. However, there is an additional deduction of up to Rs. 50,000 available for investments in specified savings instruments such as Equity Linked Savings Scheme (ELSS) and Public Provident Fund (PPF).
The Section 80C deduction also applies to LIC premiums, repayment of mortgage loan capital and more. You can also benefit from Section 80EE or 80EEA, so the maximum deduction you can claim per year is Rs. 50,000. In the case of a joint mortgage loan taken by the co-owners, each of them can apply for tax deductions individually, depending on their share in the property. Under the old regime, people with taxable income of up to Rs. 2.5 lakhs were exempt from paying income tax.
This exemption limit is extended to Rs. 5 lakhs under the new regime. People of all age groups are exempt from paying income tax if their taxable income is up to Rs. 5 lakhs.
However, under both schemes, you can apply for a refund of up to Rs. 12,500 if your total taxable income is between Rs. 5 lakhs and Rs. 7.5 lakhs. Therefore, no income tax can be paid on taxable income up to Rs.
You can download a PDF version of ITR-V from the official IT Department website and, after printing and signing it, you must send it to CPC Bangalore within 120 days of filing your returns online. Simply put, people must calculate the tax to be paid under both tax regimes and then decide which regime to select. The basic difference between the old tax regime and the new one is not only the rates but also the availability of deductions in all age groups. After clicking continue, you will see your total taxable income and the total tax you must pay depending on the tax regime you have chosen. Under the old tax regime, you benefited from a standard deduction and could apply for special tax breaks and exemptions from the House Rent Allowance (HRA) and Leave Travel Allowance (LTA) to calculate your wage income. You can reduce your taxable profits by investing in tax savings options available under section 80C of India's income tax code such as EPF, PPF, ELSS and FD for tax savings. Gross income is the total income earned by a person in a year before any tax or deduction is applied. Now, add the details of your income such as your basic salary and gross salary along with any other sources of income such as interest on deposits and rental income.
Under the old tax regime, Indian taxpayers can make use of several deductions to reduce their taxable income. Salaried individuals and pensioners with no business income can switch between the two tax regimes each evaluation year depending on their financial situation. Any resident citizen with a total gross income above the basic exemption limit must file income tax returns. Tax benefits under the policy are subject to the conditions of Sections 80C, 80D, 10 (10D), 115BAC and other provisions of the Income Tax Act of 1961. Use this income tax calculator to estimate the income tax payable (under both new and old regimes) on your earnings in a few simple steps. This is taxed at favorable rates plus cess is added to give you the full amount of your income tax payment. Now add your net salary along with other sources of income such as interest income, capital gains from investments and rental income to arrive at your gross taxable income. Tax benefits under this policy are subject to conditions laid out in Sections 80C, 80D, 10 (10D), 115BAC and other provisions of India's Income Tax Act 1961. For example: Nehal's total taxable income is Rs 6 lakhs under both regimes but his total liability would be higher if he opted for the new regime due to higher rates.
