Which is the Best Income Tax Calculator 2024?

Choose the best income tax calculator to calculate the taxes you are liable to pay per the Government guidelines.

The financial year of 2022-23 has seen numerous general changes in the monetary and fiscal systems. It would be best if you considered both the old and the new tax regimes to calculate your income tax correctly. The budgetary policies have also made us confused about the actual system. Using a good income tax calculator 2024 can help solve this problem and enable you to calculate your taxes effectively.

The Government has made it clear that the said changes will apply from the current financial year (FY 22-23). It creates additional confusion with the already-existing income tax rates (as per the old regime). The Union Budget highlights are also complicated. In this situation, only a good income tax calculator 2024 can save you time and energy and also eliminate the complexities.

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How To Calculate Income Tax Using An Income Tax Calculator Online?

The income tax for a valid taxpayer mainly focuses on their net income. Therefore, the process of calculating income tax becomes quite simple, especially when using a good income tax calculator. Moreover, it will eliminate all kinds of faults like double taxation, duplicate income models, and many more. Here are the main steps to follow:

1. Calculation of gross income of an individual: You need to calculate your gross income from your salary. Your employer will provide you Withholding Tax at any period during a financial year. The details of salary and payments will be mentioned there. In addition to that, you need to calculate your income from capital gains, property and other sources. The income tax rate differs for each division, so you must be careful. Moreover, an individual’s income from many sources is not taxable either. A good income calculator will help you differentiate your income accordingly.
2. Tax exemption and deduction process: Once you calculate your gross income, you need to eliminate the allowances according to the income tax guidelines. Here are the details:
3. Leave out travel concessions, house rent allowance, entertainment allowance, and other tax exemptions mentioned in Clause (14) of Section 80P
4. Deduct interest on home loans if the house is occupied by you or remains vacant.
5. Subtract the taxes levied while running a business (rent, tax, repair rate, etc.). It will also include any kind of donations, bonuses, or contributions made for the employees (superannuation or gratuity fund).
6. Other necessary deductions are related to National Pension Scheme (NPS), medical insurance, charity, educational loans, life insurance, and employee’s provident fund. You need to look at the exemptions’ details and apply them as and when required.
7. Calculation of net taxable income: If you deduct all the necessary exemptions on an individual’s income tax (as mentioned in the previous point), what you get is the net taxable income. It is the sole income amount on which your income tax will be calculated. It is vital that you get the amount right so that the interest gets applied accurately.
8. Determination of the amount of tax payable: Calculate the net tax that you need to pay, keeping the income tax slabs for FY 2022-23 in mind. In this process, you also need to deduct any advance tax paid by you, for example, TDS and self-assessment taxes. Or else it will lead to duplication of tax rates. 

Income Tax Slab Highlights: Old And New Regime 

As stated above, the FY 2022-23 has seen considerable changes regarding 80DDB of income tax. The following are the revised rates for the current year based on the income level of an individual (per annum):

1. Upto INR 2.5 lakh- no tax (same as old rate).
2. INR 2.5 lakh- INR 5 lakh- 5% (same as old rate).
3. INR 5 lakh- INR 7.5 lakh- 20% (old-10%)
4. INR 7.5 lakh- INR 10 lakh- 20% (old- 15%)
5. INR 10 lakh-INR 12.5 lakh- 30% (old- 20%)
6. INR 12 lakh- INR 15lakh-30% (old- 25%)
7. Above INR15 lakh-30% (same as old rate)

Income Tax Rates For Senior Citizens

Senior citizens are those who fall under the age category of 60-80 years. Their income sources may include pensions, house rents, fixed deposits and more. The Government has a set of fixed income tax rates based on net income (per annum) for senior citizens like:

1. Upto INR 3 lakhs- no tax.
2. INR 3 lakh- INR 5 lakh- 5% on income above INR 3 lakh + 4% cess on income tax.
3. INR 5 lakh- INR 10 lakh- INR 10,000 + 20% tax on income above INR 5 lakh + 4% cess on income tax.
4. More than INR 10 lakh- INR 1,10,000 + 30% tax on income above INR 10 lakh +4% cess on income tax.

Income Tax Rates For Super Senior Citizens

Super senior citizens (above 80 years) are also subjected to various income tax rates. Their source of income can be fixed deposits and house rent, among others. The details are calculated based on their annual income ranges. Here are the details:

1. Upto INR 5 lakh- no tax.
2. INR 5 lakh- INR 10 lakh- 20% tax on income above INR 5 lakh + 4% cess on income tax.
3. More than INR 10 lakh- INR 1,00,000 + 30% tax on income above INR 10 lakh +4% cess on income tax.

Calculate Income Tax Payable With An Online Income Tax Calculator

It is clear from the above-mentioned details that various complications are involved while calculating income taxes. However, the good news is that an online income tax calculator will make it easy for you to get your income tax estimate. Not only will it be an easy and faster method, but you will also be able to have an accurate amount for your income tax calculation. In case you require additional help and support, you can contact Vakilsearch. The professionals will help you calculate your income tax easily annually. So get rid of the complications and fill your taxes accordingly.

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