Whether it’s a person or a corporation, paying tax is unavoidable. After considering a few deductions, income tax is levied on the revenue received. With so many tax exemptions and deductions, it can be difficult to measure income.
Under the old and current tax regimes, an income tax calculator is a tool that can measure taxes that can be charged. The calculator uses the requisite basic details to measure the individual’s tax obligation, such as the annual wage, rent charged, tuition costs, interest on the child’s education loan, and any other savings.
The total tax payable under the old and the new scheme is issued. In addition, it suggests investment opportunities based on tax liability for the individual. A useful method is the online income tax calculator and it is free to use. It is easy to comprehend and everybody can use it to measure their tax liability.
The Indian Income-Tax operates on the basis of a slab scheme and is levied on individual taxpayers accordingly. Slab refers to the varying tax rates levied for different ranges of income. In other words, the more profits you have, the more tax you would pay. Every year, during the budget presentation, these revenue tax slabs are updated. Again, for various taxpayer groups, these slab prices are separated. There are three categories of’ individual’ taxpayers, as per India’s Income Tax, such as:
- People under the age of 60, including residents and non-residents.
- Resident Senior citizens between the ages of 60 and 80.
- Resident Super senior citizens over the age of 80.
1. Exam Year: This refers to a period of 12 months (April to March) that immediately follows the tax year.
a. HRA: House Rent Allowance is a grant given to an employer by an employee to cover the cost of housing. The HRA is not exempt from the terms and limitations set out in the tax laws.
b. Leave Tourism Assistance: LTA is a grant that is given to an employer by an employee for expenses incurred in travel but does not include expenses incurred on boarding accommodation etc. Releases are available twice in the 4 year block block. The amount of expenditure allowed is subject to the conditions specified under the tax laws.
c. National Pension Scheme: NPS is a defined pension system administered by the Pension Fund Regulatory and Development Authority (PFRDA). The NPS Corporate model allows employers and employees to contribute a portion of an employee’s salary to NPS. The employer’s contribution can be deducted from the employee’s salary. However, an employee has the right to demand an deduction from an employer’s contribution under section 80CCD (2) up to 10% of salary. An employee is entitled to claim his or her contribution as a deduction under section 80C and is also eligible for an additional deduction under section 80CCD (1B) amounting to Rs 50,000 / -. However, additional deductions may only be obtained once the full limit of Rs 1,50,000 / – specified under section 80CCE has expired.
a. Municipal Rates: Any rates paid by municipal officials are approved as a rebate.
b. Loan Interest: Interest paid on loans taken for the acquisition and / or construction of real estate. Such interest is allowed as a reduction when making an in-house computer from home. In addition, in the event of a loss of household goods, the same can be adjusted in relation to a net income of up to Rs 200,000.
4. Employee Contribution to the Provident Fund: A portion deducted from the monthly salary of employees and contributed to the provident fund. The amount of the contribution is allowed as a deduction under section 80C (subject to a total limit of Rs 150,000).
5. Contribution to the Provided Provident Fund: Any amount donated to an employee (including spouse or children) into a Public Fund Account must be deducted under Section 80C (subject to a limit of Rs 150,000).
6. LIC Premium: An employee-paid premium to keep life insurance policy in effect. The premium paid is eligible as a deduction under Section 80C (subject to a total limit of Rs 150,000). Tax benefits are provided at a premium paid to you, your spouse and the taxpayer’s children.
Tuition: This is a tuition fee paid at any school, university in India for full partner or children’s education. The tuition fee payable must be deducted under Section 80C (subject to a total limit of Rs 150,000).
8. ELSS: A taxpayer may require an investment in the Equity Linked Savings Scheme of a partnership fund as a deduction under Section 80C (subject to a maximum limit of Rs 150,000)
9. Tax revenue / total revenue – means taxable revenue after all exemptions and exemptions available under the Act.
10. Regular deductions: The 2018 Finance Act introduced a standard deduction in the area of the transport grant (which was charged up to Rs 19,200 per annum) and medical refunds (which were taxed up to Rs 15,000 per year on debt production). It is a flat hold given the people who earn their salary to meet their daily expenses. The Finance Act 2019 proposes to increase this to INR 50,000.
11. Medical Insurance Premium: Any amount paid by an individual (including spouse and dependent children) for medical insurance is allowed to be deducted under section 80D subject to a limit of Rs 25,000 (this is Rs 50,000 for all older taxpayers). In addition to the limits applicable to each person when paying for medical insurance and / or parental medical expenses an additional access of Rs 25,000 is available (this is Rs 50,000 if the parents are elderly citizens). A person may also claim Rs 5,000 under section 80D and within the general limit as described above for expenses incurred in the medical examination.
12. Remuneration This includes salary paid to an employee and tax deductions provided to an employee. Employers issue Form 16 and Form 12BA annually stating the salary and allowances and the number of perquisites given to an employee during the financial year.
13. Revenue from Real Estate As per the Finance Bill, two taxpayer’s residential properties will not be taxable less than the income of a homeowner.
14. Earnings earned on profits or profits acquired in the exchange / transfer of any principal asset (such as assets, shares, securities, etc. except for a particular category of assets not specifically included such as moveable personal results, etc.) held by a divider under the income category under Capital Gain, the gain earned in that way can be classified and long-term / short-term depending on the seizure of those assets transferred / sold / converted.
15. Revenue from Other Sources Any money not made under any other head of income such as income, property, business and crafts and income income falls under the category of revenue from other sources. Such income includes interest earned on savings bank account, deposits etc. Lottery revenue, share revenue etc.
Income tax calculator is a very useful tool. It helps to calculate personal tax liability by considering the required information such as income, expenses, and investments. Below the list are the benefits of the income tax calculator.
The Treasury Department in its Union 2020 Budget has provided a new and existing tax regime. It is up to the taxpayers to decide which tax to pursue. The income tax calculator will help taxpayers determine which tax law is most appropriate for them. People can adjust their taxes appropriately and receive tax benefits. By tax planning, one can also make retirement planning easier. 80Cs like NPS and SCSS help plan for retirement.
Easy to use
The calculator is straightforward to use. All inclusion is the investor’s income, expenses, and investment details.
Setting up personal taxes can be very stressful. And with the introduction of a new tax regime, it has become more difficult. The income tax calculator will help taxpayers calculate taxes under both states and allow them to decide what is best for them in just seconds. So it saves a lot of time for them.
The Legalraasta Income tax calculator online assists anyone in finding their tax exemptions for years. An online tax calculator requires specific data relating to income, investments, and online taxpayer costs.
Now let’s look at a step-by-step guide on how to use Legalraasta as an Income Tax calculator online.
Step 1: Enter the Annual Fee
Step 2: Enter the cost
Here one needs to choose whether they live in Metro City or not. Apply for a paid monthly allowance and a rental allowance. Provide details of the children’s tuition fees, as well as the interest rate paid on the Child Education Loan loan if available. You should also decide if you have a home loan or not.
Step 3: EPF and savings
Here the available funds should be disclosed.
Step 4: Counted calculation
In this step, the calculator calculates the tax rate according to the new scheme and the old system. Also, it determines how much more needs to be invested to save tax effectively. Besides, taxpayers can go back to any action and change prices as needed. Also, the calculator suggests the best investment options to save tax continuously.
People can determine the total tax cost by using an online tax calculator. Such instruments refer to the following indicators to determine the actual tax liability of a non-resident or Indian resident at the end of the financial year –
- Annual income from salary/profit.
- Revenue from other sources such as investment, rental income, etc.
- Tax exemptions apply if any.
- Housing rental and transportation allowance.
Entering the correct details in respect of the above-mentioned indicators will indicate the amount of tax for persons. Deleted already paid taxes by TDS, the rest can be posted directly through the official portal Challan 280. If, in any case, taxes are paid in excess of the total debt, the difference is refunded by the government within 30 days of the same filing.
Note: The deadline for submitting income tax returns (ITR) FY 2019-20 (AY 2020-21) is extended to 10 January 2021. For tax valuation and TP testing, the last date is 15 February 2021.
Taxpayers who submit their forms after the due date will be required to pay interest under 234A and a penalty under section 234F. Therefore, remembering the proper date for completing tax returns is very important. However, keep in mind that the deadline varies according to the taxpayers’ category. For example, if you are a paid person, you should usually submit your income tax returns by July 31 of the inspection year.
To use the tax calculator, follow the steps listed below:
- Pick the assessment year that you want to measure the tax for.
- Pick your age in the next sector. As already mentioned, India’s income tax varies according to different age groups.
- Click on the ‘income area’ next. Provide your gross wage data (monthly or yearly salary paid without any deductions). You will need to fill in other information, such as annual income from other sources, such as rental income, annual interest paid on the self-occupied home loan, and let-out land. Next, enter various deductions, viz., in the information. Pursuant to Section 87A, 80C, 80CCD (1B), 80D, 80G, 80E, 80TTA, 80TTB, 80GG simple deductions u/s. Also, provide interest information on an educational loan and on the savings account deposits.
- Provide the specifics of the HRA exemption in the next step, such as basic wage, DA, HRA, and total annual rent paid.
- Finally, to receive your tax liability, pick whether you live in a metro city and press the calculate button
In Budget 2021, no adjustments in the income tax slabs and rates were announced. As per the income tax slabs, the Total Income derived as above after deductions and exemptions is subject to tax. There is a basic exemption cap for individual taxpayers, where income up to that limit is not taxed. The specific exemption cap varies depending on the taxpayer’s age and the taxpayer’s age. For female taxpayers, revenue tax slabs and rates do not vary.
Income Tax slabs and rates for all resident or NRI taxpayer
|Taxable Income (Rs.)
||Tax Rate (in %)
|About Rs. 2,50,000
|Rs. 2,50,001- Rs 5,00,000
|Rs. 5,00,001 – Rs. 10,00,000
|More than Rs. 10,00,001
Income Tax slabs and rates for Senior Citizen
For a resident senior citizen who, on the last day of the previous year, is 60 years or older at any point during the preceding year but less than 80 years.
|Taxable Income (Rs.)
||Tax Rate (in %)
|About Rs. 3,00,000
|Rs. 3,00,000- Rs 5,00,000
|Rs. 5,00,000 – Rs. 10,00,000
|More than Rs. 10,00,000
|Taxable Income (Rs.)
||Tax Rate (in %)
|About Rs. 5,00,000
|Rs. 5,00,000 – Rs. 10,00,000
|More than Rs. 10,00,000
Income Tax rebate for all resident taxpayers of Rs 12,500
In the case of a taxpayer whose total income does not exceed Rs 5 lakhs, a rebate under section 87A is available to an extent of Rs 12,500
Surcharge and Cess on Income Tax
If a taxpayer’s gross income is more than Rs 50 lakh but less than Rs 1 crore, a surcharge of 10% of the income-tax amount is levied.
||Surcharge rate on Income-tax
|Between 50 lakhs and 1 Crore
|Between 1 Crore and 2 Crores
|Between 2 Crore and 5 Crores
|Above 5 Crores
The Health and Education cess of 4 per cent will be levied on the amount of income tax plus surcharge (if applicable).
- Section 87A – Income below Rs. 5 lakhs is worth a tax rebate of up to Rs. 12,500.
- Section 80C – Discount of up to Rs. 1.5 Lakh on any adjustable tax deposit, public funds, national savings certificate, unit-linked insurance strategies, and savings-related savings plans.
- Section 80CCD (1B) – Tax exemptions up to Rs. 2 lakhs of the amount included in the national pension scheme.
- Section 80D – Up to Rs. 25,000 tax exemptions on premium medical insurance bills The limit goes up to Rs. 50,000 adults.
- Section 80G – Any donations made to charities are not paid in full for tax purposes.
- Section 80E – Interest on educational loans enjoys a 100% tax rebate for up to 8 years.
- Section 80TTA / 80TTB – Interest income from savings accounts is eligible for tax deduction of up to Rs. 10,000. For older persons, all types of benefits amount to Rs. 50,000 are completely deducted from tax calculations, under Section 80TTB.
- Section 80GG – Tax exemption on income used to pay rent (rental allowance.)
Here are the advantages of the Income Tax Calculator from Legalraasta:
- The calculator lets users try different permutations and investment and cost combinations to verify the tax flow.
- The tax calculator online is free. With Legalraasta’s Calculator, one can measure their taxes online.
- Within seconds, reliable results are computed.
- The online tax calculator saves users quite a lot of time from making long and time-consuming calculations.
- The Income Tax Calculator of Legalraatsa offers investment opportunities for the assessee to further save tax by taking advantage of the deductions.
- In investment planning, the calculator also helps.