Income Tax Calculator – India
Income Tax Calculator – India
Calculate your estimated income tax liability based on your annual income, exemptions, and deductions under the Indian tax system.
Disclaimer: This income tax calculator provides an estimate of your tax liability. Actual tax liability depends on various factors, including other exemptions, and tax laws applicable at the time. Always consult a tax advisor for accurate calculations.
What is Income Tax?
Income tax is a financial charge or levy imposed by the government on the income earned by individuals or entities. The tax is used to fund public expenditures such as infrastructure, healthcare, defense, and more. In India, income tax is calculated based on various tax slabs, exemptions, and deductions.
Tax Slabs in India for FY 2024-25
The tax slabs vary based on the individual’s age group and income. Here are the common tax slabs:
- Below 60 years:
- Up to ₹2.5 lakhs: No Tax
- ₹2.5 lakhs to ₹5 lakhs: 5%
- ₹5 lakhs to ₹10 lakhs: 20%
- Above ₹10 lakhs: 30%
- 60 to 80 years (Senior Citizens):
- Up to ₹3 lakhs: No Tax
- ₹3 lakhs to ₹5 lakhs: 5%
- ₹5 lakhs to ₹10 lakhs: 20%
- Above ₹10 lakhs: 30%
- Above 80 years (Super Senior Citizens):
- Up to ₹5 lakhs: No Tax
- ₹5 lakhs to ₹10 lakhs: 20%
- Above ₹10 lakhs: 30%
How are Deductions Calculated?
There are several sections under the Income Tax Act that allow deductions from your income, such as:
- 80C: Deduction for investments in PF, LIC, PPF, and other specified savings schemes (up to ₹1.5 lakhs).
- 80D: Deduction for premiums paid for health insurance (up to ₹25,000 for individuals and ₹50,000 for senior citizens).
- 80E: Deduction for interest on education loans.
- 80G: Deduction for donations to charity.
Why Use This Income Tax Calculator?
- Accurate Calculation: This tool helps you calculate your income tax based on the latest tax slabs and applicable deductions.
- Easy-to-Use: Simply enter your income, deductions, and age group to get your estimated tax liability.
- Time-Saving: You can quickly estimate your tax without the need for manual calculations or tax forms.
- Helps Plan Tax Filing: Knowing your estimated tax can help you plan your tax payments and filing in advance.
How to Use the Income Tax Calculator?
- Enter your annual income.
- Input any eligible deductions under sections like 80C, 80D, etc.
- Select your age group to apply the relevant tax slab.
- Click the “Calculate Tax” button to get the estimated tax.
Conclusion
The Income Tax Calculator helps you quickly calculate your income tax based on your income, deductions, and the latest tax slabs in India. It’s an easy-to-use tool that can save you time and effort in preparing for tax season. Keep in mind that the results are estimates, and actual tax liability can vary based on several factors. Always consult a tax advisor to ensure accurate filings.