Income Tax Calculator is an easy way to calculate your IT runs through an estimated based formula, and every employee or individual holding a business needs to fill their IT returns by roughly calculating with help of the Income Tax Calculator.
This will make them understand how much tax must be paid and how much they have paid further regarding their earnings, and this formula lets you understand if any excess amount has been deducted in terms of IT returns and the same will be credited back to your account.
This is a must to be used, as per Government of India regulation those who have an earning of 5 Lakhs and above per every year, and they are entitled to fill the Income Tax based on their earning and spending in different criteria.
Uses of Income Tax Calculator
To make you more clear about the Income Tax Calculator, here are some points projected by 99employee.com that you must be aware of so that you will know the importance of an Income Tax Calculator.
Tax Planning: The ministry of Finance has released their union budget and has given a new tax regime. This has left everyone questioning their IT returns value which can only be solved using an Income Tax Calculator. By using the calculator they can plan in an easier way and fill the ITR , such that it is based on the finance ministry regime.
Time-Saving: Getting a detailed plan to file the ITR is a time taking proves, in such a situation you just need to use the Income Tax Calculator and fill in your details as asked, and the calculator will automatically get the result on your screen which will give you better undressing on your spends.
Easy and Free to Use: there are numerous Income Tax Calculators available by various Banks and financial institutes which can be used in one click, and moreover there is no charge and they also provide a convenient way to get your Income Tax calculated.
Basic to Calculate Income Tax
The Income Tax Calculator does use some of your information which uses a formula and then calculates the exact income tax for an individual, and as well the calculation will be different for individual, business, or partnership firms, and thus below are some basic points that will be used while calculating the Income Tax.
- Income from Salary
- Income from House Property
- Income from Business and Profession
- Income from Other Sources
- Income From capital Gain
One should use the Income Tax Calculator found online, as these are designed with Indian Income Tax formula and they do consider various sections of Income Tax.
Calculate Income Tax
The Income Tax can only be calculated by using the online calculator found by different financial instructions, and the e Income Tax doesn’t have as it must have to look at each of your earnings from different sources, and entire sources should be updated in the calculator, and then it will automatically give a result by looking into your Form 16.
The total value of income from salary will be deducted by tax and in case excess tax has been deducted, the same can be issued from the Income Tax department.
How much tax should one pay from their salary?
The Income Tax is paid as per the income tax slab your falling in. for the individuals who are below 60 years are asked to pay 5% to 30% from their income which starts from 2.5 lakhs and increases double till 15 Lakhs, and based on the income slab, the Income Tax will be calculated and applied.
What is the maximum non-taxable limit?
The maximum limit of the non-table income is 2.5 lakhs which is set for individuals and under section 87A the rebate of 2,500 can be applicable if your salary is below 3.5 Lakhs, If you have tax savings then added upon you will not be asked for any Income Tax for that excess income.
Is Income Tax calculated for TDS?
No, the Income Tax calculator is used to calculate the Income Tax value that is being deducted from your account and is nowhere directly related to Tax Deducted at Source, and it allows you to calculate the liability for that based on your spending and earning.