Sunday, April 3, 2022

Income Tax Calculator


What is Income Tax Calculator?

Income Tax Calculator is an online tool or method through which any taxpayer can estimate his tax calculation for any financial year.  Every year in the budget, the central government announces the income tax slab or rate of tax.  Accordingly, you can use this calculator to find out your tax, which will be payable on your income.  Through this, income tax return can also be filed easily.

How to use Income Tax Calculator (Online Income Tax Calculator)?

Income tax calculator can be used in the following ways:

First of all choose the financial year for which you want to calculate your income tax.  Then state your age.  Age plays an important role in the calculation of income tax.  Then submit your taxable income.  In taxable income, you have to subtract HRA, LTA and standard deduction.  In taxable income, you have to pay interest income, rental income, interest on home loan and interest on loan taken against own property.  Then now you have to give information about investments made under Section 80C, 80D, 80G, 80E and 80TTA of Income Tax.  Now after this you have to calculate your tax liability.

How to calculate Income Tax?

Salary income includes Basic Pay + HRA + Special Allowance + Transport Allowance + other allowances.  Some salary allowances are not included in income tax, such as telephone bill, LTA etc.  If you take HRA and live on rent, then you can get HRA exemption.  Apart from this, a discount of Rs 50,000 will be available as standard deduction.

Will be included in the income

Include all income earned in a financial year, including salary, income from house (rent and interest on home loan), capital gains (income from trading of shares), business or profession  Income savings account, fixed deposits and interest income from bonds.

How will HRA be calculated?

We have to first understand who are entitled to get income tax exemption on house rent allowance.  For this the most important thing is that you get house rent allowance in your salary and the house for which you are claiming to pay the rent should not be in your own name.  Under Section 10(13A) of the Income Tax Act, the lowest of the three amounts to a salaried employee is 50 per cent of his basic salary, the amount received towards HRA or 10 per cent of the basic salary deducted from the actual rent paid.  But is exempted from income tax.

If a person receives Rs 25,000 as basic salary.  Out of this, Rs 12,500 is towards HRA and if he actually pays only Rs 12,500, then he will be able to get exemption on Rs 10,000 only.  In fact, the amount of rent paid (12,500) is reduced by 10 per cent (2,500) of the basic salary, the same amount remains.

Another thing to remember is that if you are paying rent above Rs. 1,00,000 (ie Rs. 8,333 per month) per annum, then the PAN number of the landlord (even if they are mother or father or wife) has to be entered.  is also mandatory, and they will have to pay tax on this income.  Remember, to get income tax exemption on house rent allowance, it is necessary that the house is not the property of the rent payer, and the receipts of payment are present.

Disclaimer/Disclaimer: This tax calculator works on the basis of certain assumptions.  Your actual tax liability may be different from this.  Readers must consult an expert.


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