Income Tax Calculator – Calculate Your Taxes for FY 2021-22

Why is an income tax calculator a good option to calculate taxes? How to use an income tax calculator?

Users may use a website to determine how much tax they will have to pay. This is based on their income after the release of the Union Budget for the year. People in the “taxable income band” must pay taxes on a certain amount of their annual net income.

Payroll deductions and the Central Board of Direct Taxation’s online method of filling out income tax forms are the two ways you can pay your income tax (CBDT).

If the required payments can be made through an online payment system that receives money from many sources, people are more inclined to do so.

So, if you’re having some trouble calculating your income tax, an income tax calculator can be the solution to that problem.

The basic information about the income tax

A person’s base pay plus any supplementary payments, such as housing, transportation, special, and other benefits, are called their “salary.” Paying phone bills and travel costs incurred while on leave are only two examples of non-taxable compensation and benefits package components.

If you have rented a property and paid HRA, you could be qualified to submit an exemption application for HRA.

These exemptions are in addition to the standard deduction. This deduction was set at 40,000 rupees in the 2018 budget but was raised to 50,000 rupees in the 2019 budget.

Our income tax calculator has been updated to reflect the most recent changes by the Union Budget 2021–22.

How can I use the income tax calculator online?

Please adhere to the guidelines below to gain the greatest benefit possible from the income tax calculator:

• Select the year equal to the assessment year for which you intend to do your tax calculation first.
• Enter your current age in the appropriate fields. In India, different age groups are subject to different income tax laws.
• Then choose “Income field” from the menu. Make a list of your year’s gross pay. Consider all taxes (monthly or yearly salary paid without deductions). You must also declare the amount of income you get from renting out your home. You should also consider the annual interest payments you make on your mortgages for your main house and any investment properties.
• The following deductions should be entered: Section 87A, Section 80C, Section 80CCD (1B), Section 80D, Section 80G, Section 80E, Section 80TTA, Section 80TTB, and Section 80GG deductions. Please provide further information on the interest rates for the savings account and the student loan.
• Add your annual rent that HRA and your wage, DA, and HRA do not cover.
• Select “metropolitan region” or “non-metropolitan area” and click “calculate” to see how much tax you would owe.

These steps clearly explain the procedure of using an income tax calculator.

What do the terms in my tax brackets imply in the income tax calculator?

Under India’s income tax slab structure, every taxpayer pays the appropriate taxes. “Slabs” refers to the varied tax rates for different income levels. You have to pay the government more taxes when your income increases.

An income tax calculator can easily calculate your tax amount and save you from any type of foul.

Different categories of taxpayers are taxed at different rates. Taxpayers fall into one of three categories of “individuals” according to the Income Tax Act of India.

• Anyone under 60, whether they are a permanent or temporary resident,
• Residents in the neighbourhood between the ages of 60 and 80
• Adults above 80 who live in one place are called “super seniors.”

So use the income tax calculator and stay updated about the income tax payable amount.

How is the required income tax amount determined?

People may use an online income tax calculator to determine how much they owe.

• Transactions in Indian Rupees on December 31 of a particular year
• The total sum of money someone makes yearly is their annual pay.
• Generating income from unusual channels, such as investments, rental income, etc.
• A recurring payment to help with housing and transportation costs.

You may determine a person’s total tax burden. This can be done by providing precise values for the variables mentioned in the preceding sentence.

Any money left over after TDS has been taken out may be deposited immediately via Challan 280. This is the government’s internet gateway. The government has 30 days to issue a taxpayer a check for the difference if their refund request results in more payout than their tax bill.

The income tax calculator will help you to get all the information about income tax.

The Internal Revenue Code’s Sections 234A and 234F explain how interest and penalties are applied to late-filing taxpayers. Therefore, it’s crucial to note the cutoff date for filing your income tax returns.

Additionally, remember that the date for submitting your taxes may change. This depends on your tax situation. Salary earners typically have time till July 31 of the assessment year to file their tax returns. You can stay updated with the income tax calculator.

Effects of exemptions on the total level of income tax

• A tax credit of up to Rs.12,500 may be claimed by individuals earning less than 5 lakh rupees by Section 87A.
• Equity-linked savings schemes. The Indian Income Tax Act contains the relevant rules on this.
• Taxpayers may deduct up to Rs. 2 lakh in contributions made to the national pension system from their taxable income under Section 80CCD (1B).
• Under Section 80D, you are eligible for a tax deduction of up to Rs 25,000 if you pay health insurance premiums. For those over 65, the maximum amount rises to Rs. 50,000.
• According to Internal Revenue Code Section 80G, certain donations to NGOs are not taxed as gross income.
• You can deduct all the interest paid on student loans for up to eight years, according to Section 80E.
• Taxpayers may deduct up to Rs. 10,000 of interest income from their taxable income by Sections 80TTA and 80TTB of the Income Tax Act. Older people are free from paying taxes on interest income up to Rs. 50,000 under Section 80TTB.

All these rules and regulations are encrypted in the income tax calculator, so you can expect the exact result from it.

Summing up

Piramal Finance is one of India’s top non-bank finance organizations. A team of knowledgeable advisers of Piramal Finance is available to assist you at every stage of the application process. It is accessible 24 hours a day, 7 days a week, to assist existing and new clients. This boosts your chances of being accepted and receiving your funds soon.