Income Tax Calculator
Income is calculated by adding basic salary + HRA + Transport Allowance + Special Allowance + all other allowances together. Some of the allowances are exempted from income tax slab and to get all possible deductions, you need to calculate it well. To make accurate calculations, you need to have a clear understanding of all tax laws and possible deduction slabs.
With our automated tax calculation system, you just need to enter the required information in the given field accordingly and click on the calculate button. Our automated system will calculate it for you with deducting all the necessary deductions.
The total salary of an individual is categorized into Gross salary, Provident Fund, Insurance, Leave pay, Gratuity, Employee State insurance and Labour Welfare Fund.
Gross salary is the total of Basic pay + House Rent Allowance + Dearness allowance + transport allowance + special allowance.
There are some components of the salary that are exempted from taxation, such as:
- Medical Allowance Reimbursement.
- Telephone Bill Reimbursement.
- House Rent Allowance for employee occupying rented accommodations.
Categories of Income Tax Slab as per the latest Income Tax Act:
- Male or Female Indian resident who fall under the age group of 60 years and below.
- Every resident over 60 years of age but under 80 years.
- Indian resident falling under the category of 80 years of age and above (super senior citizens).
- Non-resident individual or non-resident Indian, irrespective of the age.
Steps by step process in determining income tax slab:
- Deduct the exemptions availed for House Rent Allowance, conveyance expenses and medical expenses from the gross salary.
- Add the extra income earned on interest as well as every commission and bonuses (if applicable).
- Add income earned from rent (if applicable).
- Add the income earned from capital gains (if applicable).
- Subtract the deductions that fall under section 80C, Section 80D and other deductions under Chapter VI.
- The final income amount after these calculations will be the net taxable income. The income tax slab will be applied on this final income.
How to Use Income Tax Calculator
- The first part of the calculator requires you to enter all your personal information
- Select the assessment year
- Select your age
- In the second part of the calculator, fill -in your income details
- Taxable Salary
- Income from Interest and other income
- Applicable only on Self Occupied House Property (Provided Loan taken on or after 01/04/99)
- Interest Paid on Home Loan
- Rental Income Received (Applicable only on Rental House Property)
- Fill the next part of the calculator with the deductions
- Basic Deductions as per Section 80C
- Interest from Savings as per Section 80TTA
- Donations to Charity as per Section 80G
- Medical Insurance Premium as per Section 80D
- Lastly enter your Tax Deducted at Source (TDS) Details
- TDS Deducted from Salary
- TDS Deducted (other than Salary)
- Total Advance Tax already paid