Income Tax Calculator

An Income Tax Calculator helps you to calculate the total tax payable based on your taxable income, expenses, age, investments and interest paid towards your home loan as per the relevant tax laws.

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. Below are the steps to use the income tax calculator for the current financial year 2022-23.

To find out your tax liability using an income tax calculator, simply follow the below steps:

1. Select your age bracket
2. Enter your annual income
3. 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)

4. 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. As an alternative, you can use our income tax calculator to calculate the tax amount you need to pay. Taxes already paid in the form of TDS or advance tax will be considered when calculating income tax.

Steps to calculate your income tax benefits from home loan

To know your tax benefits from a home loan, you can use our simplistic income tax calculator to calculate the income tax amount you need to pay. Note that the calculation is purely based on your Home Loan and does not include other factors.

The steps to use the tax calculator are as follows:

1. Visit the Income Tax Calculator page on the Bajaj Finserv Website
2. Select your gender
3. Enter your annual income in Rupees
4. Enter the interest you have paid in the year of IT calculation
5. Enter the principal amount paid on home loan in the year of IT calculation
   

Your benefits will be visible to you to the right of the calculator.

Income tax calculation examples:

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. If you receive HRA and live on rent, you can claim exemption on HRA.

Samaira, a 30-year-old employee in an MNC in Mumbai, earns 12,50,000 per annum. With a standard deduction of 50,000, her gross total income becomes 12,00,000. Under Section 80c, she gets a deduction of 1,50,000 which makes her total income 10,50,000. Her tax calculation will work for both the regimes as shown below:

As of FY 2022-23, there are two tax regimes in India – old and new. As a taxpayer, you can choose any one regime for a financial year after discussing with an expert. In case you want to change your regime, you can opt for it during the next financial year again.

Old regime income tax calculation:

For Samaira, the income tax figure according to the old regime comes out to be 1,27,500 with an added education cess of 4%, making the total payable tax amount 1,32,600.

New regime income tax calculation:

The income tax figure for the new regime comes out to be 1,25,000 with an added education cess of 4%, making the total payable tax amount 1,30,000.

New income tax slabs for FY 2022-23

New income tax slabs for FY 2022-23

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.