Income tax is a type of tax imposed on individuals or entities based on their income or profits. It is a direct tax that is levied by the government to generate revenue and fund various public expenditures, such as infrastructure, education, healthcare, and defense.
Individuals are typically subject to income tax on their earnings from various sources, including employment income, self-employment income, rental income, interest, dividends, and capital gains. The tax is calculated based on the total taxable income after deducting applicable deductions, exemptions, and credits.
The specific rates and rules for income tax vary depending on the country and its tax laws.
An income tax calculator is an online tool that helps individuals or businesses estimate their income tax liability or tax refund. It simplifies the process of calculating income tax by taking into account various factors such as taxable income, filing status, deductions, exemptions, and credits.
| Income Tax Calculator - Tax Slabs | New Tax Regime Income Tax Slab Rates FY 2022-23 | Old Tax Regime Income Tax Slab Rates FY 2022-23 |
|---|---|---|
| Up to Rs 2.5 lakh | Nil | Nil |
| Rs2,50,001 to Rs 5 lakh | 5.00% | 5.00% |
| Rs 5,00,001 to Rs 7.5 lakh | 10.00% | 20.00% |
| Rs 7,50,001 to Rs 10 lakh | 15.00% | 20.00% |
| Rs 10,00,001 to Rs 12.5 lakh | 20.00% | 30.00% |
| Rs 12,50,001 to Rs 15 lakh | 25.00% | 25.00% |
| Over Rs. 15 lakh | 30.00% | 30.00% |
The employees can review the taxes they have already paid by checking their TDS Certificates.
The employees also receive Form-16s from their respective employers that include all details about employees' pay & the taxes being deducted from it. However, while calculating the total taxable income alternative sources like rental income, investments etc should be taken into consideration.
Our Income Tax Calculator is very useful & easy to use, all you need to do is fill in your basic information, income details & tax deductions.
With the help of our Income Tax Calculator, individuals can determine their complete tax expenses. The calculator takes into account the following factors to mirror the tax due for resident & non-resident Indians at the conclusion of a financial year:
Taxpayers who fail to submit their returns within the stipulated deadline are liable to incur penalties and interest as per Section 234A. Thus, it is imperative to keep in mind the deadline for filing income tax.However, it is noteworthy that the deadline may vary depending on the type of taxpayer. For instance, individuals receiving a salary are generally required to file income tax forms by 31 July of the assessment year.
As per this Section, income under ₹5 lakh slab is taxable for a value of up to ₹12,500
According to this Section, a maximum of ₹1.5 lakh in interest earnings can be redeemed through tax-saving fixed securities, public provident fund, national savings certificates, unit-linked protection plans, and equity-linked savings schemes.
According to this, contributions made to the national pension system up to a maximum of ₹2 lakh are eligible for tax exemption.
A tax exemption of a maximum of ₹25,000 is granted on medical insurance premium payments, with a raised limit of ₹50,000 for senior citizens.
The income tax calculator acknowledges the tax-exempt status of all donations made to charitable organizations
The tax deduction for student loan interest is applicable for a period of up to 8 years & entitles the borrower to a 100% tax rebate.
The tax exemptions for savings account interest income can reach up to ₹10,000 as per the regulations. Senior citizens are eligible for complete exemption from taxation on all interest income sources up to ₹50,000 under Section 80 TTB.
As per this Section, the provision of tax exemption for the portion of income utilized towards rental payments, commonly known as house rent allowance.
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