Income Tax Calculator FY 2022-23
Income Tax Comparison
|Pre-Budget 2020-21||Post-Budget 2020-21|
|Particulars||Old Regime||New Regime||Old Regime||New Regime|
|Gross Total Income||0||0||0||0|
About Income Tax Calculator
The income tax calculator is an user-friendly online tool that is designed to provide an estimation of how much income tax you are liable to pay in a financial year after the Union Budget is presented. The calculator helps you with an approximate figure of your income tax liability by taking various data into consideration such as your income, house rent allowance (HRA) exemption, deductions, etc.
How to use Income Tax Calculator?
- 1. Choose your age bracket. This determines your tax slab rates that are applicable.
- 2. Select if you're a salaried employee or not.
- 3. Enter your salary breakup details such as Basic Salary, Dearness Allowance, House Rent Allowance (HRA), other allowances and perquisites.
- 4. Deduct exemptions on salary income (other than HRA) which are not allowed under new tax regime (e.g. Education allowance, Hostel allowance, Leave travel allowance, etc.)
- 5. Deduct HRA Exemption under Section 10(13A).
- 6. If you live in a rented house, enter the rent amount paid.
- 7. Less any professional tax paid.
- 8. Click on "Next".
- 9. Fill all the details in the "Income From House Property" section.
- 10. Fill details in the section "Income From Capital Gains."
- 11. Enter fields in "Deductions" under Section 80C, Section 80CCD(1B), Section 80CCD(2), Section 80D, Section 80E, Section 80EEA, Section 80EEB, Section 80TTA, and Section 80TTB.
- 12. Click on "Calculate Tax" and your taxable income and the tax payable will be displayed on screen....
Note: You can enter 0 in whichever fields not applicable.
How to calculate Income Tax?
Income Tax in calculated on your taxable income based on the applicable tax slab for you. Your taxable income is obtained by adding together all the income sources such as salary, rent, capital gains, etc. to get your gross income and then the deductions and exemptions you are eligible for are subtracted from it. Taxes which you have already paid in the form of TDS or advance tax will be adjusted while calculating the income tax.
Calculate Income Tax as per the old regime:
In the old tax regime, you benefit from standard deduction and can claim tax exemptions on HRA and LTA, and special allowances to get your income from salary. To this, add income from different sources, for example - house property, business/profession, capital gains, etc. to find your gross total income. Other than this, you can also claim deductions under Section 80C, 80D, 80TTA, etc., to get your taxable income.
Your taxable income is taxed at a specific tax slab rate and cess is added to give you your total income tax payment.
Calculate Income Tax as per the new regime:
In the new tax regime, you refrain from most exemptions and deductions, such as HRA, LTC, standard deduction, deduction under Sections 80C, 80D, 80E, 80G, and others. Add your income from other sources to income from salary to find your gross total income. Your taxable income is taxed at the concessional tax slab rates and cess is added to give you your total tax payment.
Income Tax slabs under old and new regime for FY 2022-23
|Income range per annum||Tax Rate as per Old Regime||Tax Rate as per New Regime|
|Upto Rs 2.50 Lakh||No Tax||No tax|
|Rs 2.50 Lakh – Rs 5 Lakh||5%||5%|
|Rs 5 Lakh – Rs 7.50 Lakh||20%||10%|
|Rs 7.50 Lakh – Rs 10 Lakh||20%||15%|
|Rs 10 Lakh – Rs 12.50 Lakh||30%||20%|
|Rs 12,50,000 – Rs 15,00,000||30%||25%|
|Above Rs 15,00,000||30%||30%|
Note: Under the old tax regime, the basic exemption limit is Rs 3,00,000 for a person aged between 60 years to 80 years old and Rs 5,00,000 for a person 80 years old or above.
Under the new tax regime, tax slab is same for all individuals irrespective of their age.
What is the eligibility criteria to file Income Tax?
Any resident of India with gross total income of more than the basic exemption limit must file ITR or income tax returns. However, if an individual's total income is less than the taxable limit, he/she can file a NIL return.
Other entities that file Income Tax Returns in India are:
Associations of Persons (AoPs)
Hindu Undivided Family (HUF)
Body of Individuals (BOI)
Artificial juridical persons
Depending on the total income of the taxpayer, the correct ITR form must be filled.
- How much income tax should be paid on salary?
It simply depends on your taxable income and the income tax slab applicable to you. Your taxable is what you get after subtracting the exemptions and deductions from your gross total income, which includes your salary (less HRA, standard deduction, etc. for the old regime) and other sources income.
The tax slab for new tax regime and old tax regime is different.
- What is the difference between deduction and exemption?
Income Tax Deduction is the subtraction i.e. an amount that can reduce taxable income. Income Tax Exemption is the exclusion, i.e. if certain income is exempted from tax then it will not contribute to your total income.
- How will the new tax regime work for a person?
In the new tax regime, while calculating your tax liability you will have to forgo the exemptions/deductions and apply new tax slabs and reduced tax rates.
- Is the new tax regime optional? Can I change the option for any financial year?
a) For a person without business income, option can be selected every financial year.
b) For a person with business income, option to select the new tax regime from financial year 2020-21 is one time. Once selected it cannot be changed.
- Which income is non-taxable in India?
Incomes mentioned under the Section 10 of The Income Tax act 1961 are non-taxable in India.
- What is the maximum limit for non-taxable income?
Income up to Rs 2.5 lakh is non-taxable. Further, under Section 87A, a person gets full tax rebate if his/her income is less than Rs 5 lakh.
- What if you do not pay income tax?
The tax department levies heavy fines on persons who do not pay their taxes. As per Section 234F, Rs. 10,000 will be fined for failing to file tax returns.
- Is HRA taxable?
HRA is also a part of your salary, but unlike basic salary, it is not fully taxable. In certain conditions, as per Income-tax Act, 1961, a part of HRA is exempted under Section 10 (13A). The HRA exemption amount is deductible from the total income before getting a gross taxable income.
- Does everyone have to file income tax returns (ITR)?
If an individual's income is below the taxable slab of Rs 2.5 lakh currently, it is not mandatory to file income tax return for him/her. However, if you have a PAN (Permanent Account Number) card and an income that is below the taxable threshold, experts advise them to file the ITR with a NIL return. This way you show to the IT department that you did not have any taxable income for a specific financial year and therefore, you did not pay income taxe for the same.
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