Estimating your taxes before you file your tax return is an essential part of tax planning. However, income tax computation requires good knowledge of taxation laws:( Thus, looking at the hardships faced by people, we created a simple online tax calculator tool to help you easily estimate your tax refund or tax payable to the government. Our income tax calculator calculate taxes, on the basis of latest provisions of the income tax act and rules issued by the Income Tax Department.
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The Income Tax Calculator is an easy-to-use online tool that lets you estimate your taxes based on your income. We've updated our tool to reflect the proposed income tax adjustments in the Union Budget for 2023-2024.
Tax2win’s income tax calculator works on the basis of input provided by the user.
Step 1: Enter the basic details such as name, email address, income source.
Step 2: On the next screen, enter your income details such as income from salary, rental income, etc.
Step 3: Click on Next and enter your income from other sources.
Step 4: Enter the deductions that are applicable to you
Step 5: Click on Calculate and you will see how much income tax you will have to pay.
Note: Whichever field is not applicable, you can enter "0"
Calculation for Salaried person
The sum of Basic pay + HRA + Special Allowance + Transport Allowance + any additional allowance and components is the total salary of an individual. Out of this salary, some aspects of your compensation, such as leave travel allowance, HRA, etc., are exempt from income tax. So, to calculate your total income tax, it is essential that you have your salary slips with you and know all the components of your salary. Further, you should have all the documents related to your investment handy to calculate your taxes after taking into account the available deductions and exemptions.
Let’s understand how to calculate taxes using both new and old tax regimes with the help of an example:-
| Salary Components | Amount | Deduction allowed |
|---|---|---|
| Basic Salary | 800000 | - |
| HRA | 320000 | 200000 |
| LTA | 10000 | 10000 |
| Total CTC | 1130000 | - |
| Other income | 20000 | - |
| Investments | ||
| 80C | 150000 | - |
| 80D | 25000 | - |
| 80CCD(1B) | 50000 | - |
| Salary income | Amount |
| Basic | 800000 |
| HRA | 320000 |
| LTA | 10000 |
| Total CTC | 1130000 |
|---|---|
| HRA | 200000 |
| LTA | 10000 |
| Std. deduction | 50000 |
| Net taxable salary | 870000 |
| Other income | 20000 |
| Gross total income | 890000 |
| Deduction | |
|---|---|
| 80C | 150000 |
| 80CCD(1B) | 50000 |
| 80D | 25000 |
| Total deduction | 225000 |
| Net taxable income | 665000 |
|---|---|
| Total tax on above | 47320 |
| Upto 250000 | Upto nil |
| 250000 to 500000 | 12500 |
| balance 165000 | 33000 |
| Total | 47320 |
|---|
| Salary income | Amount |
| Basic | 800000 |
| HRA | 320000 |
| LTA | 10000 |
| Total CTC | 1130000 |
|---|
| Net taxable salary | 1130000 |
|---|---|
| Other income | 20000 |
| Gross total income | 1150000 |
| Net taxable income | 1150000 |
|---|---|
| Total tax on above | 109200 |
| Up to 250000 | nil |
| 250000 to 500000 | 12500 |
| 500000 to 750000 | 25000 |
| 750000 to 1000000 | 37500 |
| balance 150000 | 30000 |
| Total tax | 105000 |
| Health & Education [email protected] 4% | 4200 |
| Total | 109200 |
|---|
Anyone who is earning a salary or has any income source and is a resident of India can use this calculator to calculate their income tax.
Income means the amount that an individual earns in exchange for providing goods or services.In other words, income is the sum of all the wages, salaries, profits, interests payments, rents, and other forms of earnings received for a period of time.
For the purpose of taxation, income has been categorized into five heads :
An income tax is a direct tax that is imposed on the assessee depending upon their respective income or profit. In other words, it is the tax levied on the income earned.
Income Tax is required to be paid when your income exceeds the Basic Exemption Limit. This limit is specified by the government every year. The basic exemption limit is Rs.2.5 lakhs only. However, there is a rebate of Rs 12500 available u/s 87A for income less than 5 lakhs.
Tax is charged on every income earned during the period April 1- March 31. The year in which the income has been earned is known as the ‘previous year’ and the year in which the tax is calculated is known as the ‘assessment year’.
You should calculate Taxes beforehand so that you are able to set aside the funds which you will be needing for paying taxes at the time of filing a return. Therefore, at the time of return filing, you don’t have to rush for arranging funds. The other benefit is, it lets you know whether your taxes will go up or down in comparison to the previous year.
In India, income tax is calculated on the basis of tax rates and slabs defined by the Finance Ministry in the budget which is presented every year.
The Slab helps to determine the tax rate at which tax will be levied upon you. Earlier, Government has determined various Income Tax Slabs on the basis of the age of the individual. Budget 2020 has given the individuals options to choose between a new tax slab and the older tax slabs.
| Old Income Tax Slab | |
|---|---|
| Up to Rs 2,50,000 | NIL |
| Rs 2,50,001 - Rs 5,00,000 | 5% (tax rebate u/s 87A is available) |
| Rs 5,00,001 - Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
| New Tax Regime | |
|---|---|
| Up to Rs 2,50,000 | NIL |
| Rs 2,50,001 - Rs 5,00,000 | 5% (tax rebate u/s 87A is available) |
| Rs 5,00,001 - Rs 7,50,000 | 10% |
| Rs 7,50,001 - Rs 10,00,000 | 15% |
| Rs 10,00,001 - Rs 12,50,000 | 20% |
| Rs 12,50,001 - Rs 15,00,000 | 25% |
| Above - Rs. 15,00,000 | 30% |
Please note that from F.Y 18-19, EC & SHEC has been replaced by the Health & Education [email protected] 4%.
Further, for understanding the other slabs of various taxpayers, please click on this link.
Tax Deducted at Source (TDS) is a mechanism whereby the tax is deducted directly at the point of origin of income and deposited to the government. It enables speedy collection of taxes. You can claim this tax paid as a credit while filing your income tax return by claiming tax deductions. In the case of salary income, it is the responsibility of your employer to deduct the TDS and deposit it to the government.
For the purpose of calculation of monthly TDS amount, just calculate your taxes from the above calculator and divide it by 12. You will get your monthly TDS amount.
For example: From the above calculator the total tax has been computed at Rs. 60,000 and now for the purpose of monthly TDS we shall divide Rs. 60,000 by 12. Hence, monthly TDS shall be Rs.5,000
The government collects the revenue in the form of income tax in 3 ways:
Yes, it computes your tax liability on the basis of information entered. You can surely use the same for your tax calculation for 2021-22 and 2022-2023. Your Income-tax liability will be more or less same, subject to the actual information.
With the help of an online tool it becomes easy to estimate your tax payment for the year. You can use the calculator by Tax2win. It is a quick, simple and user-friendly way of estimating how much your income tax liability and provides you with fast and accurate calculation.
There has been no change in the existing income tax rate from financial year 2018-2019 except the abolishment of EC & SHEC and introduction of Health & Education Cess. For Expert opinion , you could also approach us and avail our CA Assisted services.
Please follow the below given steps to calculate your income tax through Tax2win portal and there you are with the the tax calculation:
Rebate u/s 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the tax benefit of Rs. 12,500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be upto Rs 5,00,000. Read more: https://tax2win.in/guide/section-87a
We hope our free income tax calculator india was able to help you in calculating your income tax payable or refund.
Also, if you want a HRA calculator for AY2022-23 & AY 2021-22, visit our online free HRA calculator page.
