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 -
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Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.