Income Tax News: This news can prove to be of great use for all taxpayers. You can find out how much tax you have to pay and which tax regime you should choose on the IT department portal.
Filing Income Tax may seem a boring task to people, especially those who are going to file it for the first time. Meanwhile, the selection between old tax regime and new tax regime can further increase the confusion. To solve all these problems and to simplify the tax filing process, the Income Tax Department has come up with an online tax calculator. The tax calculator was introduced in February 2023 to help taxpayers decide which tax regime is better for them – new or old.
The online tax calculator is designed to provide an estimated tax liability figure. It serves as a tool for taxpayers to estimate their tax owed or potential refund amount based on income, deductions and tax credits.
Why is it important to calculate income tax?
Knowing income tax is very important for financial planning. It can help you in budgeting effectively, deciding on expenses and setting savings accordingly.
How to calculate income tax with tax calculator?
The tax calculator is currently active on the website of the Income Tax Department. Therefore, first of all you have to log in to the official website of the department (https://incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx). After this you will have to give this information –
Taxpayer type
- Male / Female / Senior Citizen / Super Senior Citizen
- Residential status
- Income other than salary and special rate income
- Interest on property
- Deduction is allowed for both the arrangements under sections 80CCH(2), 80CCD(2), 80JJAA, and family pension deduction under section 5757(iia). Deductions or exemptions other than these are not eligible in the new tax regime
It is worth noting that while the purpose of the tax calculator is to provide easy access to fundamental tax calculations to the public, the Income Tax Department does not claim to provide accurate tax calculations.
