Navigating through the labyrinth of taxes can often feel like an overwhelming task, especially with the intricacies of home loans and other financial responsibilities. However, with the advent of technology, simplifying your taxes has become more accessible than ever before. Imagine effortlessly calculating your income tax obligations with just a few clicks, seamlessly integrating factors like home loans into your financial planning. Enter the new tax regime calculator—an online tool designed to streamline the tax-filing process and optimise your financial strategies.
The mention of home loans immediately resonates with many individuals, as they are often one of the most significant financial commitments one makes in their lifetime. Whether it's purchasing a dream home or investing in property, understanding the tax implications of a home loan is crucial for effective financial management. With the help of an online income tax calculator, individuals can accurately assess how their home loan impacts their tax liabilities, ensuring they make informed decisions that align with their financial goals.
How to use an online income tax calculator
Follow the steps given below to use the new tax regime calculator:
- Search for a reliable online income tax calculator: Look for reputable websites or platforms that offer income tax calculators.
- Navigate to the income tax calculator: Once you have found a suitable calculator, navigate to the section where you can input your financial details.
- Enter personal information: Provide basic personal information such as your name, age, and residential status (resident, non-resident, or senior citizen). Some calculators may require additional details like PAN (Permanent Account Number) or Aadhaar number.
- Input income details: Enter your income details for the financial year. This may include:
- Salary income: Enter your gross salary, any bonuses, allowances, and perquisites.
- Other income: Include income from sources like interest, dividends, rental income, or any capital gains.
- Deductions: Input details of eligible deductions such as investments under Section 80C, home loan interest, medical insurance premium, etc.
- Select tax regime: If the calculator supports both old and new tax regimes, choose the one you want to calculate taxes for.
- Review and verify: Double-check all the information you've entered to ensure accuracy. Make sure you've included all sources of income and deductions.
- Calculate taxes: Once all the necessary information is entered, click on the "Calculate" or "Compute" button to generate the tax liability for the financial year based on the details provided.
Key features of the new tax regime
Starting from April 1, 2020 (FY 2020-21), the Indian Government introduced an optional tax rate system for individuals and Hindu Undivided Families (HUFs).
This introduced Section 115 BAC to the Income Tax Act of 1961, which mandated lower tax rates for respective taxpayers and HUFs who opted not to take certain tax deductions or exemptions.
Following the revisions proposed in the Union Budget 2023, the new tax regime has been established as the default, requiring taxpayers to actively choose the old tax regime if they prefer it.
However, those selecting the new system forfeit various exemptions and deductions, including HRA, LTA, 80C, 80D, etc. Consequently, the new tax structure garnered limited support, prompting the government to announce five significant adjustments in Budget 2023 to encourage acceptance of the new system:
- Increased tax rebate limit: A total tax rebate of up to Rs. 7 lakh has been introduced, up from the previous threshold of Rs. 5 lakh, implying that individuals earning up to Rs. 6 lakhs would pay no tax under the new regime.
- Simplified tax slabs: The tax exemption limit has been raised to Rs. 3 lakh, with revised tax slabs as follows:
| Net Annual Taxable Income | New tax regime (excluding the exemptions and deductions) | Old tax regime (including the exemptions and deductions) |
| Up to Rs. 2,50,000 | Exempt | Exempt |
| Rs. 2,50,001 to Rs. 3,00,000 | Exempt | 5% |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 6,00,000 | 5% | 20% |
| Rs. 6,00,001 to Rs. 9,00,000 | 10% | 20% |
| Rs. 9,00,001 to Rs. 10,00,000 | 15% | 20% |
| Rs. 10,00,001 to Rs. 12,00,000 | 15% | 30% |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% | 30% |
| Above Rs. 15,00,000 | 30% | 30% |
- Standard deduction and family pension deduction: The Rs. 50,000 standard deduction, previously available only under the old regime, has been extended to the new tax scheme. Alongside the rebate, this results in Rs. 7.5 lakh in tax-free income under the new regime. Additionally, those receiving a family pension can claim a deduction of Rs. 15,000 or 1/3rd of the pension, whichever is lower.
- Surcharge for high-net-worth individuals cut: The surcharge rate for income over five crores has been reduced from 37% to 25%, lowering their effective tax rate from 42.74% to 39%.
- Increased exemption limit for non-government workers: The exemption limit for non-government workers has been increased eightfold, from Rs. 3 lakh to Rs. 25 lakh.
Consider Bajaj Housing Finance Home Loan
Considering Bajaj Housing Finance for your home loan needs seamlessly aligns with simplifying your tax obligations. With our range of flexible options, you can make informed financial decisions that complement your tax planning. By integrating your home loan details into an online income tax calculator, you gain a comprehensive understanding of how your loan impacts your tax liabilities. Bajaj Housing Finance offers competitive interest rates and hassle-free processing, ensuring that you not only secure your dream home but also optimize your tax savings.
Here are some attractive features offered by Bajaj Housing Finance Home Loan:
- Flexible repayment options: Enjoy extended repayment durations of up to 40 years, allowing you to select a plan that best fits your financial situation and simplifies the repayment process.
- Competitive interest rates: Begin your homeownership journey with appealing interest rates starting at just 8.50%* p.a., and EMIs as affordable as Rs. 733/lakh*, making homeownership more accessible and economical.
- Customisable Loan Options: Tailor your home loan to meet your specific needs with variable loan amounts, and repayment terms, giving you greater control over the home-buying process.
- Top-up loan facility: Enhance your financial flexibility with a top-up loan facility, providing access to additional funds of Rs. 1 crore* or higher at competitive interest rates and minimal documentation, making it easier to manage a home loan balance transfer.
So, simplify your taxes while fulfilling your homeownership dreams with Bajaj Housing Finance Home Loan.
