Income tax calculator india 2022
Income tax calculator India 2022. A tax calculator for income is an online tool that was created to estimate the amount of income tax you’re required to pay for any fiscal year. The calculator gives an estimate of your tax burden when you take into consideration diverse information such as your income as well as tax deductions, HRA exemptions.
The tax amount you owe will be instantly displayed across the monitor.
Important Terms and Definitions in calculate income tax
Table of Contents
- Assessment Year In the event that your revenue during a particular financial year is analyzed during the next fiscal year, it’s called the year of assessment.
- Fiscal Year It is the time between the 1st of April in the current calendar year until the year following’s March 31st. This is the time in which you must gather all your documentation and provide your proof of investment.
- The previous year: This is the financial year that serves as a prelude to the next assessment year. The amount you earn in the current year is analyzed during the following calendar year (assessment year).
- Tax Deduction The deduction is the tax deductible income that is based on Section 80 as well as Chapter VI-A. Particular types of spending like investment in life insurance policies as well as the payment of tuition fees for children will allow you to avail an income tax deduction.
- Excemption The Exemption is particular amount that is exempted from the total gross income prior to the calculation of tax. Exemptions are provided through Sections 54 and 10. Interest on tax-free bonds as well as salary components such as LTA are some examples of exemptions.
india income tax calculator
- GO to the Ofiicel Web site https://www.incometaxindia.gov.in/
- Then Select Assessment Year like 2021-22
- Select Tax Payer ( Individual, HUF,AOPs/BOI, Domestic Company, Foreign Company, etc)
- After that selcte Male / Female / Senior Citizen
- Then selcte Residential Status
- Income from Salary
- Then enter Profits and Gains of Business or Profession (enter profit only)
- After that fill Agricultural Income
- Due date of submission of return
- Actual date of submission of return/date of completion of assessment
- The Click On Calculate Button.
What are the Sources of Income?
In accordance with the rules and regulations outlined in the Income Tax Department of India The tax-payer is entitled to at all times of time, to draw income from five sources of income, including capital gains, salary and property tax on homes, business income, and earnings earned from different sources. The generation of any type of income is tax-deductible as long as you (the tax-assessing person) categorizes each income in the categories mentioned above.
Earnings is derived from Salary
The Income Tax Department of India has listed five sources of income for which anyone can declare their earnings. One of these sources is your salary income. It is possible to make use of your tax calculator to assess the total amount.
The amount you earn from your salary is calculated using your TDS certificate, which is included in Form 16. Be aware that your employer must give you an Form 16. This can be done through the following methods:
- Take all your pay slips as well as the necessary Form 16 for the current financial year. Add all of your allowances and stipends (this includes your base salary as well as TA, DA HRA and DA on TA reimbursements) which is included on your pay slip and on the Formula 16. (Part B). After this then include your bonus.
- The sum of all the money you receive after calculating the above will be known as your gross profit.
- You can deduct the following amounts from your gross income : HRA tax exemption as well as allowances for transport (the exempt limit for the exemption will be Rs.19200 p.a.)
- The sum will be referred to as your net earnings.
The income from House Property
The income from a house is the amount that an assessee is paid each month, in the form of rental payments. If the tax-assessee is the owner of just one home, and that is also self-occupied, is required to calculate his earnings from the property.
Find your GAV (Gross Yearly Value) of your house rental property by following the steps:
- You should consider what is the fair Market Value (FMV) as well as the value that is estimated from municipal officials (Municipal Value). Consider the amount which is more valuable and that will be the expected rent.
- The rent you get (the Real Rent) with the expected rent and you’ll get the Gross Annual Value of the home.
- You can calculate net annual value (NAV) by subtracting taxes already paid to the municipal tax system during your GAV year. Take that amount from the NAV to understand the loss or earnings from your home. 30 percent of NAV The interest is paid each year on the amount of loan (if used to purchase the property).
The income from Capital Gains
The nature and quantity of transactions typically determine the amount of profit earned from capital gains. This can be achieved by following the steps:
- Calculate your capital gains over the long term by subtracting your total sales of your assets.
- Calculate your capital gains for the short-term by subtracting the total value of sales in capital asset.
- Deductions must be claimed in the aftermath of this.
Steps for Income Tax Calculation
- The first step is to determine your adjusted gross income.
- After that, you can calculate your federal taxable income , and the tax resulting from it. This includes determining your deductions for itemized deductions, then calculating the deductions you have claimed and the final step is subtracting them.
- Calculate your final tax exempts and tax liability by first taking your gross exemptions you’re eligible to receive and your total taxes on income for the year that you are in, then eliminate any tax credits you qualify for.
There are thousands of elements in each step. It is always recommended to conduct thorough research prior to when the person begins to calculate their tax.
Calculate the tax on income earned from Salary using an example
Your salary will include Transportation allowance, Special Allowance Housing Rent Allowance ( HRA) as well as the Basic Salary. Under the previous regime there were certain components of your salary like vacation allowance and reimbursement for phone bills as well as a portion that comprised the HRA were tax-free. If you opt for the new system this exemption is not offered.
Here is an illustration for how tax calculations functions under the New regime , when compared with the previous regime:
Example:1 Income tax calculator india
Base Pay: Rs.90,000 per month
HRA: Rs.45,000 per month
Extra allowance Rs.20,000 monthly
Percentage of Leave for Travel Rs.18,000 each year
Rent to be paid: Rs.25,000 per month
| Components | Amount | Deductions | The taxable value under the previous scheme | Taxable amount in this new system |
|---|---|---|---|---|
| Basis Salary | Rs.10,80,000 | Rs.10,80,000 | Rs.10,80,000 | |
| Special Allowance | Rs.2,40,000 | Rs.2,40,000 | Rs.2,40,000 | |
| HRA | Rs.5,40,000 | Rs.3,00,000 | Rs.2,40,000 | Rs.5,40,000 |
| LTA | Rs.18,000 | Rs.10,000 (bills must be provided) | Rs.8,000 | Rs.18,000 |
| Deductions (Standard) | – | Rs.50,000 | Rs.50,000 | – |
| Gross Income | Rs.15,80,000 | Rs.18,78,000 |
To calculate the tax on income, these information must be provided:
- Salary.
- The rental income or the interest is paid to a homeowner loan.
- Earn money from your job either through business or freelancing.
- The income is earned from selling shares or selling a house.
- Interest generated by an account with a fixed deposit or savings account. bonds.
In the current regime there are a number of exemptions, such as phone bill reimbursement, investment in savings instruments like the PPF, NPS, EPF, etc. Additionally, the exemptions for HRA are not accessible. The calculations of net tax-deductible income under the new system and the previous regime are detailed below:
Calculation of the Gross Taxable income under the new regime
| Components | Amount | Total |
|---|---|---|
| Salary | Rs.18,78,000 | |
| The income that is earned by other sources | Rs.30,000 | |
| Gross Total Income | Rs.19,08,000 | |
| Total Income Tax | Rs.3,22,296 |
| Components | Percentage | Taxable Amount |
|---|---|---|
| Up to Rs.2,50,000 | Taxes do not have to be paid | 0 |
| Rs.2,50,000 – Rs.5,00,000 | 5% (Rs.5 lakh – Rs.2.5 lakh) | Rs.12,500 |
| Rs.5,00,000 – Rs.7,50,000 | 10% (Rs.7.5 lakh – Rs.5 lakh) | Rs.25,000 |
| Rs.7,50,000 – Rs.10,00,000 | 15% (Rs.10 lakh – Rs.7.5 lakh) | Rs.37,500 |
| Rs.10,00,000 – Rs.12,50,000 | 20% (Rs.12.5 lakh – Rs.10 lakh) | Rs.50,000 |
| Rs.12,50,000 – Rs.15,00,000 | 25% (Rs.15 lakh – Rs.12.5 lakh) | Rs.62,500 |
| Above Rs.15,00,000 | 30% (Rs.19.08 lakh – Rs.15 lakh) | 1,22,400 |
| Cess | 4% (Rs.12,500 + Rs.25,000 + Rs.37,500 +
Rs.50,000 + Rs.62,500+ Rs.1,13,400) |
Rs.12,396 |
| Total Income Tax | Rs.3,22,296 |
Example:2 Income tax calculator india
The interest generated by the Savings account: Rs.5,000
PPF: Rs.40,000
ELSS: Rs.10,000
LIC Premium: Rs.6,000
Medical Insurance: Rs.10,000
EPF Contribution Rs.1,15,200 is a possibility during the year.
| Type of Deduction | Maximum Deduction | Eligible Amount | Amount Claimed |
|---|---|---|---|
| Section 80C | Rs.1,50,000 | Rs.40,000 + Rs.10,000 +
Rs.6,000 + Rs.1,15,200 |
Rs.1,50,000 |
| Section 80D | Rs.25,000 (self)
Rs.50,000 (parents) |
Rs.10,000 | Rs.10,000 |
| Section 80TTA | Rs.10,000 | Rs.5,000 | Rs.5,000 |
| Total | Rs.1,65,000 |
Calculation of the Gross Taxable Income under the Old Regime
| Components | Amount | Total |
|---|---|---|
| Salary | Rs.15,80,000 | |
| The income that is earned by other sources | Rs.30,000 | |
| Gross Total Income | Rs.16,10,000 | |
| Tax deductions under Section 80C | Rs.1,50,000 | |
| Tax deductions in Section 80D | Rs.10,000 | |
| The deductions allowed under section 80TTA | Rs.5,0000 | Rs.1,65,000 |
| Gross Income that is tax-deductible | Rs.14,45,000 | |
| Taxes payable, which includes Cess | Rs.2,55,840 |
| Components | Percentage | Taxable Amount |
|---|---|---|
| Up to Rs.2,50,000 | Taxes are not required to be paid | 0 |
| Rs.2,50,000 – Rs.5,00,000 | 5% (Rs.5 lakh – Rs.2.5 lakh) | Rs.12,500 |
| Rs.5,00,000 – Rs.10,00,000 | 20% (Rs.10 lakh – Rs.5 lakh) | Rs.1,00,000 |
| More than Rs.10 lakh | 30% (Rs.14.45 lakh – Rs.10 lakh) | Rs.1,33,500 |
| Cess | 4% (Rs.12,500 + Rs.1,00,000 + Rs.1,33,500) | Rs.9,840 |
| Total Income Tax | Rs.2,55,840 |
FAQs on Income Tax Calculator
1. Do I have access to an Income Tax Calculator feature on the official website of the Income Tax Department India?
Yes, you can go to the official website of the Income Tax Department and follow the steps to calculate your tax
- Visit the official website of the Income Tax Department
- Click on the bottom and under the heading ‘Important Links You will locate ‘Tax Calculator’.
- Select the tax calculator, and you will be taken to a different page.
- Fill in the required information and you’ll be able to see the total tax obligation
2.What assessment year do I estimate my tax obligation?
You can estimate your tax liabilities for the year 2020-21 by referring to the Income Tax Department of India.
3.Who can benefit from this calculator for income tax?
Anyone who is able to pay income tax can make use of this calculator.
4.Do I need to pay anything for of the Tax On Income Calculator service?
Yes, you can utilize the facility at no cost. There is no need to pay any fee.
5.Can foreign and international businesses make use of an Income Tax Calculator?
Yes, companies, firms and foreign corporations can make use of the tax calculator option available on Income Tax Department of India.
Read More :-
- Surcharge on Income Tax
- How to e filing income tax India 2022 | www.income tax.gov.in
- india income tax calculator
