look news india
Income tax filing may seem like a boring task to people, especially those who are going to file it for the first time. Meanwhile, the choice between the old tax system and the new tax system may further increase confusion. To solve all these problems and simplify the tax filing process, the Income Tax Department has come up with an online tax calculator. The tax calculator was introduced in February 2023 to help taxpayers decide which tax regime is better for them – new or old.
Online tax calculators are designed to provide an estimated tax liability figure. It serves as a tool for taxpayers to estimate their tax owed or potential refund amount based on income, deductions and tax credits.
Why is it important to calculate income tax?
It is very important to know income tax for financial planning. It can help you budget effectively, decide on expenses and schedule savings accordingly.
How to calculate income tax with tax calculator?
The tax calculator is currently active on the Income Tax Department website. Therefore, first of all you have to log in to the official website of the department (https://incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx). After this you will have to give this information-
taxpayer type
- Male / Female / Senior Citizen / Very Senior Citizen
- residential status
- Income other than salary and special rate income
- interest on property
- Deduction is allowed for both the arrangements under sections 80CCH(2), 80CCD(2), 80JJAA and family pension deduction under section 5757(IIA). Apart from these, other deductions or exemptions are not eligible in the new tax regime
It is worth noting that while the tax calculator aims to provide the public with easy access to fundamental tax calculations, the Income Tax Department does not claim to provide accurate tax calculations.