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.
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 which is imposed on assessee depending upon the 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. Currently, it is Rs. 2,50,000 for Individual below the age of 60 Years.
Tax is charged on any 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 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 that whether your taxes will go up or down in comparison to the previous year.
In India,the Income tax is calculated on the basis of tax rates and slabs defined by Finance Ministry in the budget which is presented every year.
Government has determined various Income Tax Slabs on the basis of the age of the individual. The Slab helps to determine tax rate at which tax will be levied upon you. The latest income tax slab rate for Individuals less than 60 years for the F.Y. 2017-18 (A.Y. 2018-19) are:
Income Tax Slab for Individuals less than 60 years (For Male & Female both)
| Income Slab | Income Tax Rate |
|---|---|
| Upto 2,50,000 | Nil |
| From 2,50,001- 5,00,000 | 5% |
| From 5,00,001-10,00,000 | 20% |
| Above 10,00,000 | 30% |
Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2017-18 (Both Male and Female)
| Income Slab | Income Tax Rate |
|---|---|
| Upto 3,00,000 | Nil |
| From 3,00,001- 5,00,000 | 5% |
| From 5,00,001-10,00,000 | 20% |
| Above 10,00,000 | 30% |
Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2017-18 (Both Male and Female)
| Income Slab | Income Tax Rate |
|---|---|
| Upto 5,00,000 | Nil |
| From 5,00,001- 10,00,000 | 20% |
| Above 10,00,000 | 30% |
| Less: Rebate under Section 87A | |
| Add: Surcharge and EC & SHEC | |
Please note that from F.Y 18-19, EC & SHEC shall be replaced by the Health & Education [email protected] 4%.
Further, for understanding the other slabs of various taxpayers, please click on this link.
To understand the calculation of income tax,let us take an example of a salaried person.The facts are as under :
Income from Salary - 8,00,000, Income from Other Sources - 2,00,000, Deduction u/s 80C - 1,50,000.
So, total income would be = 8,50,000. (8L+2L-1.5L).
Now, let’s have a look on tax liability for F.Y 17-18 :
For First 250,000 - Nil
Next 2,50,000 - 5% i.e. Rs. 12,500
Next 3,50,000 - 20% i.e. Rs. Rs.70,000.
So, the Total Tax liability = Tax amount + EC @ 3%
= 82,500 (12500+70000)
= 84,975.
Tax Deducted at Source (TDS) is a mechanism whereby the tax is deducted directly at the point of origin of income and submitted to government.It enables speedy collection of taxes.You can claim this tax paid as a credit while filing your income tax return.In 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:
Please follow the below given steps to calculate your income tax through File My Tax online portal and there you are with the the tax calculation:
Yes, It will help you understand the impact on your Income-tax liability after the Budget 2018.
Yes,it computes your tax liability on the basis of information entered. You can surely use the same for your tax planning for 2018-19.
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 File My Tax online. 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 for the financial year 2018-2019 except the abolishment of EC & SHEC and introduction of Health & Education Cess. Further, apart from the rate there has been various changes in the deductions. For detailed understanding of the changes of Budget 2018, please click here. For Expert opinion , you could also approach us and avail our CA Assisted services.
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 for the Financial Year 2019-20(AY 2020-21). Read more: https://filemytaxonline.comwhat-is-rebate-under-section-87a-itr
No change in the income tax slab in the budget.
Read more: https://filemytaxonline.com/guide/income-tax-slabs
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 AY 2019-20 & AY 2017-18, visit our online free HRA calculator page.