Income tax calculator & its uses

An income tax calculator is an online tool that is designed to estimate tax liability for a given tax year. It takes into account factors such as income, deductions, credits, and exemptions to determine how much tax an individual or business owes. Also there are several uses for an income tax calculator:

• It can be used to estimate an individual's or business's tax liability for a given tax year.
• It can be used to compare the potential tax liability under different circumstances, such as in the event of a change in income or filing status.
• It can be used to estimate the tax liability on investment income, such as dividends or capital gains.

Advantages of Income Tax Calculator

There are several advantages of an income tax calculator:

• Convenience: Income tax calculators are usually available online, and it can be accessed from any device with an internet connection. This makes easy for individuals to estimate their tax liability without having to visit a tax professional.
• Ease of use: Income tax calculators are generally user-friendly and easy to use, even for those who are not familiar with the tax code. They typically require users to input basic information, such as their filing status and taxable income, and then provide an estimate of their tax liability.
• Quick results: Income tax calculators provide an estimate of an individual's tax liability in a matter of minutes, making them a quick and efficient way to get an idea of what to expect when it comes to taxes.
• Customization: Some income tax calculators allow users to input additional information, such as their age, state of residence, and tax credits and deductions, to get a more accurate estimate of their tax liability.
• Educational value: Income tax calculators can help individuals understand how their tax liability is determined and what factors impact the amount of tax they owe. This can be useful for those who want to learn more about the tax code.

Overall, income tax calculators are a convenient and easy-to-use tool that can provide individuals with an estimate of their tax liability and help them to plan their finances.

How to Calculate Income Tax Online

Here are some steps you can follow to calculate your income tax online:

1. Gather all the necessary information

To use a tax calculator, you will need to have certain information on hand, such as your income, deductions, and credits.

2. Enter your information

Once all the information's are on hand, you will need to enter your personal and financial information, such as your income, deductions, and credits.

3. Calculate your tax

After you have entered all the necessary information, the tax calculator will calculate your income tax based on the information you provided.

4. Review the results

Once the tax calculator has calculated your income tax, you can review the results to see how much tax you owe or how much you will receive as a refund.

Income Tax slab Rate to Calculate Tax For FY 22-23

Income tax is levied on individuals, companies, and other entities based on their income or profits. The tax rate applicable to a particular income or profit level is referred to as a "tax slab."

Income Tax Slab Rates for Individual less than 60 years

Income Tax Slab Rates for senior citizens between 60 to 80 years

Income Tax Slab Rates for Super Senior Citizens above 80 years

Guide to use Income Tax Calculator

Step 1: Go to the e-Filing portal.

Step 2: Select Quick Links > Income and Tax Calculator. You will be taken to the Income and Tax Calculator page. There are two tabs - Basic Calculator and Advanced Calculator. The Basic Calculator tab is selected by default.

Step 3(a): In the Basic Calculator tab, enter the required details such as AY, taxpayer category, age, residential status, total annual income and total deductions. The tax calculation as per the details entered by you will appear in the Tax Summary section.

Note: Click View Comparison to get a more detailed comparison of tax under the old and new tax regimes.

Step (3b): In the Advanced Calculator tab, enter the following details: Preferred tax regime, AY, taxpayer category, age, residential status, due date and actual date of submission of return.

Under Details for Income and tax calculation, enter the required details of:

• Income under the head Salaries,
• Income under the head House Property,
• Income under the head Capital Gains,
• Income under the head Business or Profession, and
• Income under the head Other Sources. (What details are required?) - (entered) 

Under Deduction Details, enter the relevant deductions applicable to you, including but not limited to PPF, LIC, Housing Loan, NPS, Mediclaim, Loan on Higher Education. (What details are required?) - (entered)

Under Taxable Income, enter or edit the TDS/TCS details where you have substantiating evidence available.

The total tax and interest payable by you will be displayed at the end of the page.