Following are the steps you need to follow to use the tool:
Select the relevant Financial Year for which you want your income tax to be calculated.
Select the age group you fall into. This determines your tax band
Select the due date for submission of your IT return
Enter your taxable salary after standard deductions.
Enter the income from other sources. It could be from Interests, Winnings, etc.
Enter the details of income from house property, if applicable.
Next, enter details of your investments under Sections 80C (PF, LIC, etc.), 80D (Medical insurance claims for self and family), 80E (interest on educational loans) and interest on loans for Hire Purchase (if select FY 19-20).
Hit “Calculate my Income Tax” to check your tax liability.
To understand the taxable amount on salary, you should first know what are the components of salary under Section 17 of the Income Tax Act:
Compensation, pension, gratuity, commission fees or profits or benefits, advance salary, leave salary, contributions under 80CCD and the taxable portion of transfer to recognized PF.
|Taxable Income Range (In Rs.)||Tax Rate prior to Budget 2020 (Existing)||Tax Rate Post Budget 2020|
|Above 15 lakh||30%||30%|
You can stick to previous tax slabs or opt for a new one. If you go for a new one, you can’t avail the following deductions -
Am I required to file my income tax returns?
Filing IT return is mandatory for individuals earning more than 2.5 lakh per annum.
Individuals who are below the exemption limit and want to claim income tax refund can file ITR.
Which income is not taxable in India according to the IT Act?
Section 10 of the IT Act specifies an exhaustive list of exemptions that are available to reduce the tax burden of individuals. Following are some of the exemptions:
Allowances granted to High court, government employees who are Indians working abroad, UNO employees.