Income Tax Calculator
đź’Ľ Income Tax Calculator: Estimate Your Tax Liability in Seconds
An Income Tax Calculator helps you quickly figure out how much tax you owe based on your income, deductions, and the latest tax slab rates. Whether you’re a salaried individual, freelancer, or business owner, this tool simplifies your tax planning and filing.
🧮 How Is Income Tax Calculated?
Income tax is calculated using the formula:
Taxable Income = Gross Income – Deductions – Exemptions
Then, based on your taxable income, tax is applied according to the applicable income tax slab rates (old or new regime). Surcharge and cess (4%) are added to the final tax.
For example:
₹0–2.5L (Old Regime): No tax
₹2.5L–5L: 5%
₹5L–10L: 20%
Above â‚ą10L: 30%
(Rates vary for the new regime and senior citizens)
🧑‍🏫 How to Use the Income Tax Calculator?
It’s quick and easy:
Select the financial year and regime (old/new).
Enter your total income from salary, business, or other sources.
Add eligible deductions under Sections like 80C, 80D, HRA, etc.
Enter any exemptions (LTA, standard deduction, etc.).
Click “Calculate” to see your taxable income and total tax liability.
This helps you plan better and avoid surprises at the time of filing.
âś… Benefits of Using an Income Tax Calculator
Quick, hassle-free tax computation.
Helps in choosing between the new and old tax regime.
Gives clarity on deductions and exemptions.
Ideal for both planning and filing.
Reduces chances of errors and penalties.
📉 Factors That Affect Your Income Tax
Total Annual Income: Salary, rental, business, interest, etc.
Deductions Claimed: Like 80C (LIC, PPF), 80D (health insurance), etc.
Exemptions: HRA, LTA, standard deduction.
Tax Regime Chosen: Old regime offers deductions; new has lower slab rates.
Age Group: Different slabs for individuals, senior, and super senior citizens.
âť“ Frequently Asked Questions (FAQs)
What is an Income Tax Calculator?
It’s a tool that helps you estimate how much tax you need to pay based on your income, deductions, and exemptions for a given financial year.
Is it accurate?
Yes, it provides accurate tax estimates based on current tax slabs and user inputs. Actual tax payable may differ slightly based on detailed assessment or changes in law.
Which tax regime should I choose?
Use the “Compare Regimes” option to see which one gives lower tax. The old regime offers more deductions; the new regime offers lower rates with no deductions.
Are deductions under 80C, 80D considered?
Yes. You can enter all deductions including 80C (up to â‚ą1.5L), 80D (health insurance), and more to reduce your taxable income under the old regime.
Can freelancers or business owners use this calculator?
Absolutely. You can enter income from business/profession along with deductions and exemptions relevant to self-employed individuals.