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Income Tax Calculator
Income tax is a crucial aspect of every working individual's financial life. To accurately calculate income tax liabilities, individuals need to have a comprehensive understanding of tax regulations and mathematical calculations. However, the complex nature of income tax calculations often appears daunting to many taxpayers. ...Read More
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BASIC DETAILS
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ANNUAL INCOME DETAILS
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DEDUCTIONS UNDER 80C
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DEDUCTIONS UNDER 80D
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OTHER DEDUCTIONS (COMMONLY USED)
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TAXES PAID
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SUMMARY
01BASIC DETAILS1/7
02ANNUAL INCOME DETAILS2/7
03DEDUCTIONS UNDER 80C3/7
04DEDUCTIONS UNDER 80D4/7
05OTHER DEDUCTIONS (COMMONLY USED)5/7
06TAXES PAID6/7
07SUMMARY7/7
| Old Regime | New Regime | |
|---|---|---|
| Gross Income | ₹ | |
| Total Deduction (including Standard Deduction) | ||
| Net Taxable Income | ||
| Rebate under Section 87A | ||
| Tax Payable | ||
| Surcharge | ||
| Health and Education Cess | ||
| Taxes Already Paid | ||
| Net Tax Payable (Negative Value means Refund) |
What is Income Tax Calculator?
The Income Tax Calculator is an online tool designed to simplify the process of estimating your tax liability. It factors in your income details, including salary, investments, and other sources, to determine the applicable tax bracket and potential tax owed.
This calculator is particularly helpful in navigating the intricacies of the Indian income tax system. It considers relevant deductions and exemptions you may be eligible for, providing a more accurate picture of your tax obligation.
By providing a personalised tax estimate, the income tax calculator empowers you to make informed financial decisions throughout the year. This allows for better budgeting and tax planning, ensuring you are prepared for the upcoming tax season.
The online tool calculates your tax obligations based on prevailing tax rates and rules as announced in the Union Budget for the relevant assessment year, ensuring accuracy and efficiency in the tax filing ITR online.
How to Use Income Tax Calculator Online for FY 2024-25?
Using the Income Tax Calculator is a straightforward process. Simply gather your income details, including salary, investments, and any other taxable income sources. Then, input this information into the designated fields on the calculator. The tool will automatically consider the applicable tax slabs based on the latest Union Budget updates for FY 2023-24 and Assessment Year (AY) 2024-25.
Once you've entered all the necessary data, the calculator will generate a personalised estimate of your tax liability for the specified financial year.
Below Are the Steps to Use the Tax Calculator Online:
Step 1: Indicate the applicable financial year when you have incurred tax liabilities.
Step 2: Select the appropriate age category. Tax obligations in India vary based on age brackets.
Step 3: Tap the 'Proceed to Next Step' button.
Step 4: Input your taxable salary income, which refers to your salary after the deductions of different exemptions including HRA, LTA, etc, if you want to calculate your tax liability as per the old regime.
Alternatively, input your income without including tax exemptions like LTA, HRA, transport allowance, hostel subsidy, etc., if you wish to calculate your tax liability under the new regime.
Step 5: In addition to taxable salary, provide additional details including rental income, interest income, interest paid on home loan, and interest paid on a loan for a property you self-occupy.
Step 6: Next input the details for ‘Income from Digital Assets’. Enter the net income (sale consideration minus cost of acquisition). This income is taxed at 30% excluding surcharge and cess.
Step 7: Click 'Proceed to Next Step' once again.
Step 8: If you want to be assessed under the old income tax regime, you will need to input information about your tax-saving instruments u/s 80C, Section 80D, Section 80G, Section 80E, Section 80TTA, etc.
Step 9: Click on 'Calculate' to obtain your tax liability. You will also be able to compare results of your tax liabilities under both new and old tax regimes.
Note: For fields that are not applicable, input "0."
How to Understand Income Tax Slabs?
The income tax calculation in India happens following specific slabs. The slabs represent different taxpayer categories based on their annual income. With one glimpse of this slab, you can decipher that an increase in your income will result in higher tax rates. You will also see that there are two different tax slabs under the old and new regime.
To comprehend the tax slabs, you must be aware of three main categories in which taxpayers are divided under the old regime. These are:
- Individual taxpayers under the age group of 60 years for all residents and NRI citizens of India
- Resident senior citizens between 60 years to 80 years
- Resident super senior citizen individuals are the ones above 80 years old
However, under the new tax regime, the income tax slabs are common for all the above three categories of individuals. Moreover, the tax slabs are different for individuals, HUFs, companies, partnership firms, etc.
India follows a progressive tax system to ensure fair taxation. This means only the part of your taxable income that falls under a higher tax slab gets taxed at a higher rate.
How to Calculate Gross Income from Different Sources of Income?
Income from Business or Profession
This category asks citizens to provide details of all their income from any form of business or entrepreneurship profession. Any sort of trade, company or manufacturing facility is considered a business. The word ‘profession’ refers to gaining specialised knowledge for use in commercial activity.
Income from Salary
This section is for those citizens who are salaried employees under a firm. The income from your salary will be composed of certain components like Dearness Allowance, basic pay, HRA, gratuity, travel allowance and any other allowances. You will find a detailed overview of all the components of your salary in your salary slip or payroll to calculate your gross income.
Income from Capital Gains
This category looks at your profits from capital assets like stocks, real estate and mutual funds. You can further divide capital gains into two categories, which are Long Term Capital Gains and Short Term Capital Gains. Your earnings are categorised as LTCG and STCG depending on the holding period of securities.
Income from House Property
This category involves the income which you might earn by renting, selling or leasing any commercial or residential property. This might include independent houses, apartments, hostels and office spaces.
Income from Other Sources
Any income which does not fall under the above categories comes under the umbrella of income from other sources. This can involve bank interests, lottery, income from dividends, pensions, royalties, etc.
Income Tax Slab Rates for New and Old Regimes
Understanding the income tax slab rates is essential for accurate tax calculations. The table below illustrates the net taxable income, the new tax regime slab rate (AY 24-25), and the old tax regime slab rate (AY 24-25).
Net Taxable Income | New Tax Regime Slab Rate (AY 24-25) | Old Tax Regime Slab Rate (AY 24-25) |
Rs. 0 to Rs. 2,50,000 | Exempt | Exempt |
Rs. 2,50,000 to Rs. 3,00,000 | Exempt | 5% on amount exceeding Rs. 2,50,000 |
Rs. 3,00,001 to Rs. 5,00,000 | 5% on amounts exceeding Rs. 3,00,000 | 5% on amount exceeding Rs. 2,50,000 |
Rs. 5,00,001 to Rs. 6,00,000 | 5% on amounts exceeding Rs. 3,00,000 | Rs. 12,500 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 6,00,001 to Rs. 7,50,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | Rs. 12,500 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 7,50,001 to Rs. 9,00,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | Rs. 12,500 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 9,00,001 to Rs. 10,00,000 | Rs. 45,000 + 15% on amount exceeding Rs. 9,00,000 | Rs. 12,500 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 10,00,001 to Rs. 12,00,000 | Rs. 75,000 + 15% on amount exceeding Rs. 9,00,000 | Rs. 1,12,500 + 30% on amount exceeding Rs. 10,00,000 |
Rs. 12,00,001 to Rs. 15,00,000 | Rs. 90,000 + 20% on amount exceeding Rs. 12,00,000 | Rs. 1,12,500 + 30% on amount exceeding Rs. 10,00,000 |
Above Rs. 15,00,000 | Rs. 1,50,000 + 30% on amount exceeding Rs. 15,00,000 | Rs. 1,12,500 + 30% on amount exceeding Rs. 10,00,000 |
Income Tax Slabs for Individuals Aged Between 60 Years and 80 Years :
Net Taxable Income | New Tax Regime Slab Rate (AY 24-25) | Old Tax Regime Slab Rate (AY 24-25) |
Rs. 0 to Rs. 3,00,000 | Exempt | Exempt |
Rs. 300,001 to Rs. 5,00,000 | 5% on amount exceeding Rs. 3,00,000 | 5% on amounts exceeding Rs. 3,00,000 |
Rs. 500,001 to Rs. 6,00,000 | 5% on amount exceeding Rs. 3,00,000 | Rs. 10,000 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 600,001 to Rs. 7,50,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | Rs. 10,000 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 750,001 to Rs. 9,00,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | Rs. 10,000 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 900,001 to Rs. 10,00,000 | Rs. 45,000 + 15% on amount exceeding Rs. 9,00,000 | Rs. 10,000 + 20% on amount exceeding Rs. 5,00,000 |
Rs. 10,00,001 to Rs. 12,00,000 | Rs. 75,000 + 15% on amount exceeding Rs. 9,00,000 | Rs. 1,10,000 + 30% on amount exceeding Rs. 10,00,000 |
Rs. 12,00,001 to Rs. 15,00,000 | Rs. 90,000 + 20% on amount exceeding Rs. 12,00,000 | Rs. 1,10,000 + 30% on amount exceeding Rs. 10,00,000 |
Above Rs. 15,00,000 | Rs. 150,000 + 30% on amount exceeding Rs. 15,00,000 | Rs. 1,10,000 + 30% on amount exceeding Rs. 10,00,000 |
Income Tax Slabs for Individuals Above 80 Years:
Net Taxable Income | New Tax Regime Slab Rate (AY 24-25) | Old Tax Regime Slab Rate (AY 24-25) |
Rs. 0 to Rs. 3,00,000 | Exempt | Exempt |
Rs. 300,001 to Rs. 5,00,000 | 5% on amount exceeding Rs. 3,00,000 | Exempt |
Rs. 500,001 to Rs. 6,00,000 | 5% on amounts exceeding Rs. 3,00,000 | 20% on amount exceeding Rs. 5,00,000 |
Rs. 600,001 to Rs. 7,50,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | 20% on amount exceeding Rs. 5,00,000 |
Rs. 750,001 to Rs. 9,00,000 | Rs. 15,000 + 10% on amount exceeding Rs. 6,00,000 | 20% on amounts exceeding Rs. 5,00,000 |
Rs. 900,001 to Rs. 10,00,000 | Rs. 45,000 + 15% on amount exceeding Rs. 9,00,000 | 20% on amounts exceeding Rs. 5,00,000 |
Rs. 10,00,001 to Rs. 12,00,000 | Rs. 75,000 + 15% on amount exceeding Rs. 9,00,000 | Rs. 1,00,000 + 30% on amount exceeding Rs. 10,00,000 |
Rs. 12,00,001 to Rs. 15,00,000 | Rs. 90,000 + 20% on amount exceeding Rs. 12,00,000 | Rs. 1,00,000 + 30% on amount exceeding Rs. 10,00,000 |
Above Rs. 15,00,000 | Rs. 1,50,000 + 30% on amount exceeding Rs. 15,00,000 | Rs. 1,00,000 + 30% on amount exceeding Rs. 10,00,000 |
Income Tax Calculation Example Based on New Vs Old Tax Regime
Let us consider the example of Mr Shridhar, a 35-year-old salaried individual with an annual income of Rs. 12, 50,000, who has also received Rs. 7,000 as interest from his savings account. In addition, he has received a House Rent Allowance (HRA) of Rs. 6, 00,000. He pays rent of Rs. 4, 80,000 during the year. He also received a monthly special allowance of Rs. 15,000.
Nature | Amount | Deduction/Exemption | Taxable Income under the New Tax Regime | Taxable Income under the Old Tax Regime |
Salary | 12,50,000 | - | 12,50,000 | 12,50,000 |
House Rent Allowance (HRA) | 6,00,000 | 3,55,000 | 6,00,000 | 2,45,000 |
Special Allowance | 1,80,000 | - | 1,80,000 | 1,80,000 |
Standard Deduction u/s 16 | - | 50,000 | 50,000 | 50,000 |
Gross Total Income from Salary | - | - | 19,80,000 | 16,25,000 |
Income Tax Calculation Example Based on Old Tax Regime
Now, let us assume that Mr Shridhar avails deductions under Section 80C for investments up to Rs. 1, 50,000 and claims the standard deduction of Rs. 50,000. He also pays Rs. 9,000 as medical insurance premiums and has received Rs. 12,000 as interest from his savings bank account.
Nature | Amount (Rs.) | Total (Rs.) |
Salary Income | 16,25,000 | |
Income from Other Sources | 12,000 |
|
Gross Total Income | 16,37,000 | |
Standard Deduction | (50,000) | |
Deductions | ||
80C | 1,50,000 | |
80D | 9,000 | |
80TTA | 10,000 | (1,69,000) |
Net Taxable Income | 14,18,000 | |
Total tax (including cess) | 2,47,416* |
*Rounded off
Income Tax Calculation Example Based on New Tax Regime
Now, let us calculate Mr. Shridhar's tax liability under the New Tax Regime.
Nature | Amount (Rs.) | Total (Rs.) |
Salary Income | 19,80,000 | |
Income from Other Sources | 12,000 | |
Net Taxable Income | 19,92,000 | |
Total Tax (Including Cess) | 3,09,500* |
*Rounded off
Deduction from Total Income
The exemptions under Chapter VIA that can be claimed under the old tax regime on total income are discussed below:
Section 87A: Taxpayers with income up to Rs. 5 lakhs under the old tax regime or Rs. 7 lakhs under the new tax regime (FY 2023-24), can avail a rebate u/s 87A. This section offers a tax rebate that can reduce or eliminate your tax liability up to Rs. 25,000 under the new regime and Rs. 12,500 under the old regime.
Section 80C: This section allows deductions for specific investments and expenses, including Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Schemes (ELSS), home loan principal payments and tuition fees for your children. It can reduce your taxable income by up to Rs. 1,50,000 annually.
Section 80CCD (1B): This section provides an additional deduction of up to Rs. 50,000 for contributions made to the National Pension Scheme (NPS).
Section 80D: Section 80D allows deductions for health insurance premiums paid up to Rs. 75,000 for senior citizens and their dependents. The maximum limit that can be claimed under this section is Rs. 1 lakh in a financial year.
Section 80G: Donations to qualified charities can lower your taxable income by up to 50% under Section 80G.
Section 80E: This section allows taxpayers to claim a deduction of up to the entire amount of interest paid on an education loan for higher studies (maximum of 8 years).
Section 80TTA/TTB: These sections offer tax deductions for interest income earned on savings accounts and deposits. Section 80TTA provides a deduction of up to Rs. 10,000, while Section 80TTB allows senior citizens deductions of up to Rs. 50,000.
Section 80GG: This section allows renters who don't receive House Rent Allowance (HRA )to claim a deduction of up to Rs. 60,000 on their taxable income.
Incomes that are Exempt from Income Tax under the New Tax Regime
The new tax system allows for lower income tax brackets, but it comes with limitations on deductions. While it simplifies filing, some popular deductions like those under sections 80C and 80D are no longer applicable. However, the new system also introduces tax exemptions for certain types of income.
Gifts from Employer: Up to Rs. 5,000 worth of gifts received from the employer in a year are tax-free.
Gratuity: Employer payouts are exempt up to a lifetime maximum of Rs.20 lakh.
Interest on Post Savings Accounts: A maximum deduction of Rs. 3,500 per year for single post office accounts and Rs. 7,000 for joint accounts.
EPF Interest: Interest earned on EPF account balance is tax-free, based on annual contributions up to Rs. 2.5 lakh.
Life Insurance Maturity: Proceeds from life insurance policies are tax-free, subject to satisfaction of conditions.
Employer Pension Contributions: Up to Rs. 7.5 lakh annually contributed by the employer to EPS/NPS accounts is tax-exempt.
PPF and SSY Interest/Maturity: Interest and maturity benefit from PPF and Sukanya Samriddhi Yojana are tax-exempt, excluding the portion claimed under section 80C for investments.
Steps to Calculate Income Tax of a Salaried Employee?
The calculation of income tax for salaried employees requires an elaborate process. You can do this manually yourself or seek help from an expert. You can also opt for an income tax calculator available online to compute the taxes for a salaried employee.
To calculate income tax for salaried employees, you can consider following the steps below.
In the space provided, enter your total income along with your allowances in the Income Tax Calculator. Certain allowances are tax-exempt; hence, they are not included in your total salary. The important components of your salary are Leave Travel Allowance (LTA) and House Rent Allowance (HRA). These will be excluded from your gross income subject to certain conditions.
To calculate the HRA, take the lowest value among the following points.
- Actual rent must be 10% of Basic Pay + DA monthly salary
- House Rent Allowance that your employer provides
- 40% of your basic salary, if your workplace is in non-metro cities or 50% of your basic salary, for metro cities
You should mention your income from different sources like capital gains or deposits. The final result will be your gross income. With the online income tax calculator, you can evaluate your gross pay by filling in the details of your income.
To calculate your taxable income, you have to add all applicable deductions under Chapter VI-A of the Income Tax Act. This includes all deductions from Section 80C to Section 80U. Most of these deductions are available under the old tax regime while the new tax regime only allows a select few of them.
You can also claim a standard deduction of Rs. 50,000 from your annual salary FY 2023-24. Note that this is applicable only to salaried employees.
The points below will provide a brief idea of the tax-saving instruments mentioned in this section.
1. Equity Linked Savings Scheme (ELSS)
2. Life Insurance
3. Public Provident Fund (PPF)
4. Mutual Fund
5. National Pension Savings Scheme (NPS)
6. Unit Linked Insurance Plan (ULIP)
The points below will take you through the sections in the Income Tax Act that allow you to avail different tax deductions.
- Section 80CCD (1B)
This section allows both salaried and self-employed citizens of India to avail an additional tax deduction of Rs. 50,000. You can combine the benefits of this section with Section 80C for a total maximum deduction of Rs. 2 lakh/year. Under this section, you can also provide your NPS contribution to calculate the NPS deduction from your taxable amount.
- Section 80CCD(1)
If you are contributing towards your retirement in the National Pension Scheme, this deduction is for you. The Section 80 CCD(1) offers a tax deduction for your NPS investment. To have a detailed idea about the deducted amount, you can use the income tax calculator available online.
According to this section, a salaried employee will receive a 10% tax deduction if his/her gross salary is below Rs. 1.5 lakh.
- Section 80C
Section 80C allows both HUF and individual citizens of India to claim deductions of up to Rs. 1.5 lakh in a financial year. You can access this benefit by investing in instruments like Life Insurance policies, Public Provident Funds, National Savings Certificates, PPF, ELSS, and home loan repayment.
- Section 80D
You can receive deductions for the premium amount that you pay towards your health insurance under this section. To calculate the maximum tax deduction amount under Section 80D, you must consider the following points:
- A deduction of Rs. 25,000 is available on medical insurance for self, spouse or children
- An additional deduction of Rs. 25,000 is allowed for health insurance for parents below 60 years
- An additional deduction of Rs. 50,000 is allowed for self and parents belonging to the age group of 60+ years of age
It is important to note that the total tax deduction under this section cannot exceed Rs. 1 lakh. Also, you must make online payments of your premium to avail tax benefits under this section.
- Section 80E
Individuals paying interest towards education loans can avail tax deductions under this section. However, a person can enjoy tax deduction under Section 80E for a limited period which is 8 years.
- Section 80DD
Under this section, individuals and HUFs can opt for deductions for bearing the medical expenses of their dependent or disabled family members. However, you can avail a tax benefit up to Rs. 1.25 lakh depending on the person's disability.
The tax slabs for FY 2023-24 have remained the same for the old regime. However, the 2023 Budget has made changes to the income tax slab under the new regime. Under it, the basic exemption limit has been increased to Rs. 3 lakh and the rebate under Section 87A has been doubled.
Once you are done subtracting your deductions from your annual income, you can evaluate your net taxable income under either of these regimes. Now, assess the result with the existing tax slab rates. This will let you know the income tax category you belong to.
You can get help from online income tax calculators to know your correct tax slab rate.
After you have located the tax slab suiting your income, it is now time to pay net taxable income according to the tax slab. The calculation of your net income must rely on the following points.
Old Tax Regime
This is the only tax regime that was prevalent before the introduction of the new tax regime in FY 2023-24.
● Income Tax Slabs for Individuals and HUF
Tax Slabs | Age Less than 60 years | Age 60 years to 80 years | Age More than 80 years |
Up to Rs. 2,50,000 | Nil | Nil | Nil |
Rs. 2,50,001 to Rs. 3,00,000 | 5% (Tax rebate u/s 87A) | Nil | Nil |
Rs. 3,00,001 to Rs. 5,00,000 |
| 5% (Tax rebate u/s 87A) | Nil |
Rs. 5,00,001 to Rs. 10,00,000 | 20% | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% | 30% |
New Tax Regime
The new tax regime has common tax rates for every individual and HUF taxpayer, unlike the old regime which differentiates taxpayers on the basis of their age. This regime was revamped in the Union Budget 2023. The new tax regime for FY 2022-23 FY 2023-24 is given below.
Tax Slabs | Income Tax Rates | ||
Up to Rs. 3,00,000 | Nil | ||
Rs. 3,00,001 - Rs.6,00,000 | 5% (tax rebate under section 87A) | ||
Rs. 6,00,001 - Rs. 9,00,000 | 10% (tax rebate under section 87A below Rs. 7 lakh) | ||
Rs.9,00,001 - Rs.12,00,000 | 15% | ||
Rs. 12,00,001 - Rs.15,00,000 | 20% | ||
Above Rs. 15,00,000 | 30% | ||
Up to Rs 50 lakh | Nil | ||
More than Rs 50 lakh but up to Rs 1 crore | 10% | ||
More than Rs 1 crore but up to Rs 2 crore | 15% | ||
More than Rs 2 crore | 25% | ||
*Health and Educational cess of 4% tax will be applicable on the sum of income tax liability and surcharges of all cases.
Finally, you can seek a tax rebate under Section 87A of the Income Tax Act. A tax rebate is like an incentive that the government provides to individuals whose income falls below a specific limit. In this case, if your taxable income is below Rs. 5 lakh, you can claim a tax rebate of Rs. 12,500 under Section 87A.
Under the new tax regime, Section 87A allows rebates of up to Rs. 25,000 for a taxable income of up to Rs. 7 lakh. If your taxable income is above these limits, you will have to pay 4% health and education cess on the tax amount. With this, you can calculate your final taxable income.
Also, people whose income bracket falls within Rs. 50 lakh to Rs. 1 crore must pay a 10% surcharge. The highest surcharge rate is 37% applicable on income above Rs. 5 crore.
Income Tax Calculator Made Easy for Tax Filing
Select the assessment year to calculate the tax. For instance, if you are paying tax for FY 2023-24, choose AY 2024-25.
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Choose your age from the next field.
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Click on the income field and enter the required details like gross salary, and income from other sources if any.
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In the next field, enter the details of various deductions like standard deduction, rebate under 87A and deductions under the sections 80C, 80D, 80E, 80G, 80GG, 80 TTA, 80TTB, etc. Also, consider entering details of interests from educational loans and deposits in savings accounts.
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Enter details about your salary components like basic salary, DA, HRA and total rent, if you are paying any.
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Finally, select your residential place and whether it is a metro city or not and tap on the 'Calculate' icon to compute your tax dues.
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Benefits of Filing Income Tax Online
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You can complete the process quickly at your convenience
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Online filing allows faster electronic refunds
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You can get instant confirmation of filing and real-time updates on your ITR status
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The process is completely safe and very secure
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ITR serves as income and address proof and can be used to apply for visas, loans and insurance
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Online ITR filing helps you avoid any late fee or penalty since you can do it well before the cut-off date by yourself
Eligibility Criteria to File Income Tax
The individuals who are eligible to file income tax returns in India include:
Hindu Undivided Family (HUF)
Associations of Persons (AoP)
Resident citizens
Local authorities
Corporate firms
Companies
Body of Individuals (BoI)
Artificial Juridical Persons
Charitable and Religious Trusts
Income Tax Exemptions for Salaried Individuals
Let’s take a closer look at the income tax exemptions salaried individuals can enjoy under the old tax regime:
Standard deduction or INR 50,000
House Rent Allowance or HRA
Leave Travel Allowance or LTA for domestic travel only
Work-related expenses including telephone bills
Deductions under various sections of the Income Tax Act, 19611, such as:
-Sections 80C and 80CCD(1) for contributions to NPS, life insurance premium, ELSS, tuition fee, tax-saving FDs, etc.
-Section 80D for health insurance premiums
-Sections 80C, 24B and 80EEE or 80EEA against repayments for their home loan
-Section 80E for education loan interest payments
-Section 80G for contributions to valid charitable organisations
-Section 80TTA for the interest accrued on a savings account
Incomes That Are Exempt from Income Tax Under the New Tax Regime
According to the new tax regime, from April 1, 2023, you can claim the standard deduction of Rs. 50,000 on your salary. You can also avail an additional deduction under Section 80 CCD (2) of the Income Tax Act.
Besides this, few more income sources are tax-exempt under the new tax regime. Given below are some of the incomes that are exempt from taxation under the new regime.
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-Withdrawal of funds from NPS on maturity or premature withdrawal
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-The amount which you will receive after your PPF matures along with the annual interest that it accumulates
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-The maturity amount and interest that you receive by investing in Sukanya Samriddhi Yojana
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-Any kind of scholarship to meet educational expenses is tax-exempt
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-Any leave encashment that you would receive at the time of resignation or retirement is also tax-exempt
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-Interests that you receive from a Post Office Savings Account with an annual balance of up to Rs. 3,500 for each individual are tax-free
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-As per section 10 (D), any bonus which you receive on surrender or maturity of life insurance is tax-free
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-Deduction for family pension income under Section 57(iia)
FAQs on Income Tax Calculator
A person can file their annual ITR as soon as the new financial year begins, i.e., 1st of April every year. The due date by which you must complete the ITR filing procedure is July 31 of the same year.
To file an ITR, you must provide documents like an Aadhaar Card, PAN card, Form 16, bank account details, home loan statement, tax saving instruments, rental income and details about capital gains, dividend income, and foreign income.
If your taxable income exceeds the basic exemption limit in the income tax slab, you must file your income tax returns. Companies and firms must file their income tax returns regardless of their total income.
No, the income tax calculator does not calculate TDS. However, it can compute your tax liabilities for any given assessment year.
You can opt for any income tax calculators available online to calculate your due taxes. All you need to do is choose the appropriate tax slab and enter the necessary fields. Following this, the tax calculator will compute your payable tax.
Yes, individuals meeting specific income criteria are required to file income tax returns as per the Income Tax Act. This includes individuals whose income exceeds the basic exemption limit and those with foreign income, among others.
You can calculate income tax online using various Income Tax Calculator tools available on reputable financial websites or the Income Tax Department India's official website.
The tax amount depends on various factors, such as your income level and applicable tax slab rates. Utilise the Income Tax Calculator to determine your specific tax liability.
To calculate tax on your salary, subtract the deductions applicable to your income level from your gross income and apply the relevant tax slab rates.
Yes, both registered and unregistered e-filing users can claim the income tax calculator facility on the Income Tax Department India’s official website.
Any Indian taxpayer, regardless of their occupation or income source, can use the income tax calculator to calculate their tax liabilities.
Certain types of income are not taxable in India, such as –
Agricultural income
Provident fund
Pension (to the extent of commuted)
Gratuity upto specified limit
Maturity benefits from some insurance policies
Share from a partnership firm or LLP
Gifts from relatives
The maximum non-taxable limit depends on a taxpayer's age and the selected tax regime. Under the old tax regime, the non-taxable income limit is capped at Rs. 2.5 lakh annually for individuals less than 60 years of age. For senior citizens, the limit is Rs. 3 lakh/year, while for super senior citizens, it's Rs. 5 lakh/year. In the new tax regime, the maximum limit is Rs. 3 lakh/year for individuals of all ages.
The tax deducted from your salary depends on various factors, including your income level, tax deduction norms, and the tax slab rates applicable to your income. Your employer deducts taxes from your salary based on these factors.
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- Tax benefits & exemptions are subject to conditions of the Income Tax Act, 1961 and its provisions. Tax Laws are subject to change from time to time. Customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.
- If the policyholder has exercised the option to change premium payment term, Total Premiums Paid will include premiums paid only from the date of converting to Limited Pay
- In-built Terminal Illness cover under Life & Life plus plan options. In-built Accidental Death cover under Life Plus option. Optional benefit of Waiver of Premium on Total and Permanent Disability or diagnosis of Critical Illness.
- Guaranteed Income: This option offers a guaranteed regular income for a fixed term of 10 or 12 years.
- For Single premium, the special addition is 1% of the Single premium at inception only
ARN - INT/ED/06/24/12772
