Income Tax Calculator

An Income Tax Calculator is an online tool you can use to assess your tax liability as per the relevant tax laws. The Income Tax Calculator considers factors like your income, age, interest paid towards your home loan, expenses, and investments to indicate the total tax payable on your income under the new or old tax regime.

Depending on the tax regime, the tax slabs and factors considered will vary. The online tax calculator is free, easy-to-use, and generates error-free results instantly.

To know your tax liability with an income tax calculator, simply enter relevant details in the fields:

• Select your age bracket
• Enter your annual income
• Disclose investments and eligible deductions under Sections like:

• 80C (ELSS funds, PPF, house loan principal repayment, etc.)
• 80CCD(1B) (National Pension System)
• 24B (Home loan interest repayment)
• 80E (Education loan interest repayment)
• 80G (donations to charitable institutions)
• Enter HRA, LTA exemptions

You can enter ‘0’ for fields that are not applicable. Once you go through the steps, you will see your tax payable under the old and new regimes for AY 2023-24 (FY 2022-23).

Income tax is calculated on your taxable income based on the tax slab applicable. Your taxable income is derived by adding income from all sources (salary, rent, capital gains, etc.) to get your gross total income and subtracting from this the deductions and exemptions you are eligible for. Taxes already paid in the form of TDS or advance tax will be considered when calculating income tax.

Calculate income tax for the old regime:

In the old tax regime, you benefit from standard deduction and can claim special allowances and tax exemptions on HRA and LTA to arrive at your income from salary. To this, add income from other sources, such as house property, capital gains, and business/ profession to get your gross total income. Next, you can claim deductions under Sections 80C, 80D, 80TTA, etc., to get your taxable Income.

Your taxable income is taxed at the relevant tax slab rate and cess is added to give you your total tax payment.

Calculate income tax for the new regime:

In the new tax regime, you forgo most exemptions and deductions, for instance, LTC, HRA, standard deduction, deductions under Sections 80C, 80D, 80E, 80G, and so on. Add income from other sources to your income from salary to get your Gross Total Income.

This is taxed at the concessional tax slab rates and cess is added to give you your total income tax payment.

New income tax slab for FY 2020-21 & AY 2023-24

The old regime tax slabs for AY 2023-24 are as follows.

1. For individuals below age 60

2. For individuals between 60 and 80 years (senior citizens)

3. For individuals aged 80 and above (super-senior citizens)

Filing income tax returns online:

• Is quick and convenient
• Allows for faster and electronic tax refunds
• Facilitates a prompt confirmation receipt and real-time status updates
• Is confidential and secure
• Is error-free and saves professional costs
• Helps with VISA processing, getting insurance, and loan applications
• Serves as an income and address proof
• Makes it easy to avoid the late penalty
• Helps you carry forward losses

You must file income tax returns if your gross total income for the financial year exceeds the basic exemption limit. For the old regime, the basic exemption limit is:

• Rs. 2.5 lakh for residents below age 60
• Rs. 3 lakh for senior citizens (between 60 and 80 years)
• Rs. 5 lakh for super-senior citizens (80 years and above)

In the new tax regime, the basic exemption is Rs. 2.5 lakh across all age categories.

Additionally, you must file ITR if you have:

• Deposited more than Rs. 1 crore in current account(s)
• Spent more than Rs. 2 lakh on foreign travel
• Incurred more than Rs. 1 lakh on electricity
• Income in/ assets from/ signing authority in an account in a foreign country
• Gross total income more than the exemption limit before claiming relevant capital gains exemptions

As per Union Budget 2021, senior citizens above age 75 are exempt from filing ITR for FY 2021-22 if they have only pension and interest income and the two are deposited/ earned in the same bank.

Any resident citizen with gross total income above the basic exemption limit must file income tax returns. However, if your total income is less than the taxable limit, you can file a NIL return.

Other entities that file ITR in India are:

• Hindu Undivided Family (HUF)
• Associations of Persons (AoPs)
• Local authorities
• Corporate firms
• Charitable/ religious trusts
• Companies
• Artificial juridical persons
• Body of Individuals (BOI)

Depending on the taxpayer, the correct ITR form must be used.

For e-filing of income tax return keep the following details and documents ready:

• PAN, Aadhaar, permanent address
• Bank account details relevant to the financial year (indicate which account any income tax refund should go to)
• Form 16 and proofs of interest income, for instance, from FDs
• Deduction details, pertaining to Section 80C, 80D, and others under Chapter VI-A
• Proof of tax paid (advance tax, TDS, etc.)

• Standard deduction (Rs. 50,000)
• House Rent Allowance (partial or total)
• Leave Travel Allowance (for domestic travel)
• Work-related expenses (telephone bills, meal coupons, etc.)
• Deductions under Section
• 80C, 80CCC, 80CCD(1) (NPS, PPF, ELSS, tuition fees, tax-saver FD)
• 80D (health insurance premiums)
• 80C, 24B, and 80EE/ 80EEA (home loan repayment)
• 80E (education loan interest)
• 80G (contributions to approved charitable organisations)
• 80TTA (savings account interest)
• Other deductions

These exemptions/ deductions apply to the old regime. Under the new regime only very few allowances and deductions are available.