Income Tax Calculator
What is an Income Tax Calculator?
Income Tax Calculator is an online tool that helps you to compute taxable income and the Income Tax payable on the income you have earned during a Financial Year (FY)/Assessment Year (AY). The Budget 2020, has recently announced the new tax regime. This calculator will help you decide between the new tax regime and old tax regime as well (coming soon).
How to use an Income Tax Calculator?
To use Income Tax Calculator, you need to follow the below-mentioned steps:
- Select the Assessment Year for which you want us to calculate the Income Tax.
- Select the age bracket (This will help in determining the tax rates applicable).
- Enter details of all income earned during the FY/AY.
- Income from Salary (Please add total salary after deducting various exemptions such as HRA, LTA, standard deduction, and related)
- Income from house property
- Income from other sources
- Enter all the available deductions.
- Basic Deductions u/s 80C
- Medical insurance premium u/s 80D
- Interest on Educational Loan u/s 80E
- Donation to charity u/s 80G
- Interest on deposits in saving account u/s 80TTA
- Annual interest paid on home loan (self-occupied)
- Other Deductions.
- Add details of TDS and Advance tax paid
- Calculate tax.
Once you have added the details, the tax will be automatically computed and displayed on your screen within seconds.
What are the details required to use the Income Tax Calculator?
The basic details of income earned should suffice to use this calculator. No documents are asked.
What are the Income Tax rates in India?
Under the old tax scheme, tax rates are allocated based on the income slabs and age group of the taxpayer.
| Under 60 Years of Age | |
|---|---|
| Income | Tax Rate |
| Up to 2,50,000 INR | Nil. |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20%. |
| Above Rs. 10,00,000 | 30% |
| Under 80 Years of Age (Senior citizen) | |
| Income | Tax Rate |
| Up to Rs.3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
| Above 80 Years of Age (Super senior citizen) | |
| Income | Tax Rate |
| Up to Rs. 5,00,000 | Nil. |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Additional tax to be paid on income tax:
- 10% Surcharge shall also be paid where the income of a person exceeds 50 Lakhs INR up to 1 Crore INR.
- 15% Surcharge has to be additionally paid by the person whose income exceeds the mark of 1 Crore INR.
The Income Tax rates as per the new regime are:
| Income Slab | Applicable Tax Rate |
|---|---|
| Up to INR 2.50 lakhs | Nil. |
| Above INR 2.50 lakhs and up to INR 5 lakhs | 5% |
| Above INR 5 lakhs and up to INR 7.5 lakhs | 10%. |
| Above INR 7.5 lakhs and up to INR 10 lakhs | 15% |
| Above INR 10 lakhs and up to INR 12.5 lakhs | 20% |
| Above INR 12.5 lakhs and up to INR 15 lakhs | 25% |
| Above INR 15 lakhs | 30% |
What is the maximum amount of income on which tax is not payable?
Any person earning up to INR 2.5 lakhs in a year does not have to pay taxes. In addition to this under section 87A, a person gets a full tax rebate (up to INR 12,500 from FY 2019-20) if the income earned is less than INR 5 lakhs.
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