With ever-changing tax laws and several jargons – tax exemption, tax rebate, tax deduction, tax saving etc – to decipher, most of the time we do not even realize what portion of our income is being taxed, and how we can save some money.
Is there a way to calculate your tax liability?
The calculator provides an approximate figure of your income tax liability by taking into account various data such as your income, deductions, HRA exemption, etc. You can use the following tax calculator to calculate income tax amount you will be required to pay.
Which is the best tool to calculate income tax?
The income tax calculator is an easy to use online tool which provides you an estimation of the taxable income and tax payable once you provide the necessary details. The steps to use the tool are as given below –
How to check your income tax withholding estimator?
Gather information for other sources of income you may have. Have your most recent income tax return handy. Keep in mind that the Tax Withholding Estimator’s results will only be as accurate as the information you enter. Check Your Tax Withholding for 2021
What kind of tax rebate can I claim if my income is less than 5 lakh?
In case your total taxable income after deductions doesn’t exceed Rs 5 lakh, you can claim rebate under Sec 87A of Rs 12,500. Now if your taxable income is more than Rs 5 lakh, you can add the health and education cess of 4 percent to your tax amount to see the final amount you will pay.
How are tax slabs decided based on income?
And, the tax slabs are decided based on one’s income and age. Now, taxable income is income of an individual minus the tax exemptions, deductions and rebate. These processes are laced with complicated calculations and adjustments, so we take you through them to make the math simple. First, write down your annual gross salary you get.
How much tax do I have to pay if I make more than 5 lakh?
Now if your taxable income is more than Rs 5 lakh, you can add the health and education cess of 4 percent to your tax amount to see the final amount you will pay. For people in the very high-income bracket, i.e. between Rs 50 lakh and Rs 1 crore, they need to pay a surcharge of 10 percent.