File accurate returns using tax calculator to calculate required ITR

Filling ITR: The most difficult task while filing income tax return is to calculate income and expenditure. In which many times wrong tax returns are filed due to wrong calculations. Moreover, there is also confusion in choosing which tax regime (method) may be more beneficial. These difficulties are particularly troublesome for first-time ITR filers. To solve this, the tax department has started a facility.

tax calculator of tax department

Income Tax Department launched tax calculator facility in February, 2023. This facility facilitates the taxpayers to calculate the income-expenditure required for tax. This facility enables taxpayers to choose whether to file taxes under the new regime or under the old and new tax regimes. This solution is designed to provide estimated tax liability figures using online tax calculator. Which works like a tool.

How does this tool work?

This tax calculator tool released by the Income Tax Department allows taxpayers to calculate income, deductions and tax credits. This helps in estimating the tax payable and possible refund. Which simplifies tax filing and provides taxpayers with advance information about refunds.

use it like this

First of all, log in to the official website of Income Tax https://www.incometax.gov.in/iec/foportal/income-tax-calculator. In which click on Income and Tax Calculator in Quick Links.

There will be two options: Basic Calculator and Advanced Calculator. In the Basic Calculator tab, enter information such as assessment year, taxpayer category, age, residential status, total annual income and total deductions.

By clicking on View Comparison you will be able to get details comparing the old and new tax regimes.

In the advance tax calculator, you have to fill the details like tax method, assessment year, age, residential status, return filing date and submit this information.

, Income underlying main income

, income from house property

, capital gains income

, Income from business and other sources

, Later you can get an estimate of taxable income by filling in the details of various deductions including PPF, LIC housing loan, NPS mediclaim, loan for higher studies.