The Income Tax Calculator will allow you to calculate your income tax for financial year FY 2023-24 (AY 2024-25).
What is Income Tax Calculator?
The government collects income tax on a person's income. A person, Hindu Undivided Family (HUF), business, cooperative societies, trusts and other entities are all required to abide by the income tax rules. Tax slabs are used to determine the income tax of a person on the basis of their age and income. The income of a person after subtracting the exemptions, deductions, and rebates becomes their taxable income. The deduction, exemptions and other rules may be revised on the basis of the Union Budget presented for that financial year. Now, to make calculations easier for all, Income Tax Calculator can be used to determine your taxable income.
The Income Tax calculator is an easy-to-use tool which helps you figure out the income tax which you are required to pay for the financial year. To use this application for FY 2022-23, simply enter your age, residential status, income, investments in tax-saving instruments, and income from other sources. With the help of the Income Tax calculator, you can find out how much tax you owe after subtracting the tax exemptions, deductions and rebates.
How to calculate Income tax for FY 2023-24 (AY 2024-25)?
To calculate your taxable income, here are some steps through which you can easily assess the amount you owe:
Income Tax Slabs under Old V/s New Tax regime
|Income Slab||Old Tax |
|New tax Regime |
( until 31st March
|New Tax Regime |
( From 1st April
|₹0 - ₹2,50,000||-||-||-|
|₹2,50,000 - ₹3,00,000||5%||5%||-|
|₹3,00,000 - ₹5,00,000||5%||5%||5%|
|₹5,00,000 - ₹6,00,000||20%||10%||5%|
|₹6,00,000 - ₹7,50,000||20%||10%||10%|
|₹7,50,000 - ₹9,00,000||20%||15%||10%|
|₹9,00,000 - ₹10,00,000||20%||15%||15%|
|₹10,00,000 - ₹12,00,000||30%||20%||15%|
|₹12,00,000 - ₹12,50,000||30%||20%||20%|
|₹12,50,000 - ₹15,00,000||30%||25%||20%|
The Tax will be deducted on the basis of the tax slab. There are two slabs for the same. The old regime and the new regime. As per the new regime, no tax will be deducted from your salary if the taxable income is below 3 lakhs. If it is between 3 lakh to 6 lakh, then 5 percent will be deducted as tax from your income. Similarly, the tax rate increases with the increase in salary.
Under the new tax system, the standard deduction benefit is available to salaried individuals and retirees (including family pensioners). A person who chooses the new tax system for FY 2023–24 is qualified to take a standard deduction of Rs 50,000.
The maximum non-taxable income limit is Rs 3 lakh as per the new regime. The taxable income is calculated after several deductions and exemptions. As per the new regime, 5 percent tax is levied on the taxable salary between Rs 3 lakhs and Rs 6 lakh.
A standard deduction of Rs 50,000 will be taken out of each taxpayer`s gross salary income. Additionally, family pensioners who choose the new tax structure may deduct Rs 15,000 as a standard deduction from their pension income.
The deductions that can be claimed under section 80CCD (2) new regime include the employer’s contribution to the employee’s NPS account. It also includes a standard deduction of Rs 50,000. The other exemptions include a travel allowance with respect to specially-abled people, conveyance allowance and tour/transfer compensation.
As per the new tax slab, you are not required to pay any tax if your taxable income is below Rs 3 lakh. A 5 percent tax is levied on the taxable income between Rs 3 lakh and 6 lakh. Similarly, for income between Rs 6 lakh and 9 lakh, the tax rate is 10 percent.
It permits a maximum annual deduction of a total of Rs 1.5 lakh from the taxpayer`s gross income. Both individuals and HUFs are eligible to take advantage of this discount. LLPs, corporations, and partnership firms are not eligible for this deduction.
Subsections 80CCC, 80CCD (1), 80CCD (1b), and 80CCD (2) are all included in Section 80C. This subsection includes payments made towards life insurance premiums, mutual plans, government-sponsored plans such as the national pension system and others.
Under Section 24 of income tax, you may deduct up to Rs 2 lakh for your interest category. The maximum interest payment deduction for a self-occupied home is Rs 2 lakh. This regulation is in force from 2018–19.
As a tax-efficient investment, mutual funds provide expert money management as well as help you to achieve your financial goals. A Specified Mutual Fund (one that invests less than 35 percent of its proceeds in domestic equity shares) will not receive an indexation benefit when calculating long-term capital gains. Taxation on debt mutual funds will now be determined by the applicable slab rates.
Investing in mutual funds can result in profits that may be taxed as `capital gains.` Some tax deductions can also be availed of in certain circumstances. The taxation rate for capital gains from mutual funds depends on the holding period and type of mutual fund. The funds can be classified into Equity funds, Debt funds, Hybrid equity-oriented funds or Hybrid debt-oriented funds.
As per the Income Tax Act, of 1961, a senior citizen is an Indian resident whose age is 60 years or above but less than 80 years. A super senior citizen is an Indian resident aged 80 years or more.
The Income Tax Act puts resident individuals into three categories: Individuals aged up to 60 years, senior citizens and super senior citizens.
The income tax slab rate as per the new tax regime for senior and super senior citizens: No tax charged up to Rs 2,50,000. Between Rs 2,50,001 to Rs 5,00,000, a 5 per cent tax is levied. From Rs 5,00,001 to 7,50,000, the tax deducted up to 10 per cent. Similarly, as the amount increases, so does the tax amount.
As per income tax laws, freelancers must pay taxes on their income, just like salaried or business taxpayers. Freelancing income is generated when someone is hired to work on specific assignments for a defined period of time. As a result, the person is paid upon completion and submission of the work. However, one does not become an employee, nor appear on the company`s payroll. A visit to the office isn`t necessary, and the work can be completed at leisure, by the pre-agreed deadline, from a convenient location. Some provisions like the Employees` Provident Fund Organisation, for example, are often mandated by the Companies Act.
In a financial year, all taxpayers, salaried, freelancers, and businesses, must pay the advance tax if their total tax liability exceeds Rs 10,000.
A surcharge on income tax is an additional fee that must be paid. It is an additional tax on individuals with higher inflows of income during a given fiscal year. The current rate of the income tax surcharge, which applies to both the old and the new tax regimes, is 10 per cent for income over Rs 50 lakh and up to Rs 1 crore. For income over Rs 1 crore and up to Rs 2 crore, the surcharge is 15 per cent. The levy is 25 per cent for income over Rs 2 crore and up to Rs 5 crore, and 37 per cent for income over Rs 5 crore.
Cess is a type of tax levied by the Central Government to fund specific projects. The government imposes a cess only when there is a necessity to fund certain spending for public welfare.
Cess will be phased out once the goal is accomplished. If a person`s income falls into the non-taxable income taxation bracket, they are exempt from paying the cess.
Income earned by a Non-Resident Indian abroad is not taxable in India by default. However, if the income of an NRI in India from sources such as capital gains from investments in stocks, mutual funds, property rental, and term deposits exceeds the basic exemption ceiling as established in the Income Tax Act, they must file a tax return.
A foreigner is any person who is not an Indian citizen. Whether a foreign national is required to pay Indian income tax is determined by the individual`s actual presence in India during the fiscal year that runs from April 1 to March 31, regardless of citizenship or purpose of stay.
Agricultural income is exempt from income tax. However, the Income-tax Act specifies how such income is to be indirectly taxed. The term for this is "partial integration of agricultural and non-agricultural income.
Since it is not included in a person`s total income, agricultural income is not taxable under Section 10 (1) of the Income Tax Act. However, if agricultural revenue surpasses Rs 5,000 per year, the state government may collect a tax. The money is classified as a recognised source of income and consists mostly of income from agricultural land, structures on or related to agricultural property, and commercial produce from agricultural land.
A precise set of documents must be presented and retained as proof in accordance with the Income Tax Act of 1961 and the Income Tax Rules of 1962.