Have you paid your Taxes yet? Know your Income Tax Liability
The Income Tax Calculator is quite popular among those who are employed and liable to pay taxes. It is also popularly known as Tax Calculator. Such Income Tax Calculators are used by major tax filing portals, personal finance companies. InvestmentYogi provides a very simple calculator for calculating the individual tax liability for the particular assessment year.
Why should you use this calculator?
If you want to know how much tax you would have to pay for the income generated in the year, this calculator is the one for you.
How to use this calculator?
The entries to make are:
Assessment Year ā Choose the assessment year for which you want to know the tax liability. Ex: AY 2014-15, AY 2013-14, etc. AY 2014-15 is also known as FY 2013-14.
Income of Individual as ā Choose under what status you are filing the taxes i.e. male, female or senior citizen. Tax slabs are different for few categories depending on year of assessment.
Gross Salary ā It is the total salary including bonus, perquisites, compensation, etc.
Section 10 Exemptions ā There are a lot of exemptions available for the employees depending on the company such as HRA, LTA, Medical, Petrol, Telephone, etc. The total of these exemptions needs to be entered here.
Section 16 Deductions ā Section 16 allows a deduction for professional tax /tax on employment, entertainment. The total of such deductions for the year can be entered here.
Other Sources Income ā Enter the other sources of income such as family pension, interest income from FDās and other investments.
Chapter VIA Deductions ā Deductions from Section 80C – 80U such as PF, Insurance premium, Donations, etc. Remember that each section has its own limit, like 80C limit is 1 lakh.
Once you enter these values and click on calculate, the result would be stating the total tax liability including education cess and surcharge (if applicable).
When should you use this Calculator?
This calculator is to be used when you are unsure of your tax liability or want to recheck the tax liability for the assessment year concerned.
Can it be used in any other situation?
This is specifically used when looking for calculating the income tax to be paid or being paid. It is also useful when there is a refund involved and you are eager to know how much it would be.
Frequently asked questions about Income Tax
Some frequently asked questions related to Income tax have been answered in the following articles:
Tax Saving Options ā The article gives various tax saving options under various sections as per the individual tax slab.
How to get your pending tax refund? ā If you have refund pending from the income tax department, know how to go about in claiming it. The process is explained in detail.