An online income tax calculator is a tool that individuals can use to assess their tax liability as per relevant tax laws. Some factors taken into account while using this online tool include individuals’ age, income, interest payable on home loans, and other investments and expenses. All these factors indicate the total tax payable over an individual’s income as per the old or new tax regime. Individuals must choose the tax regime accurately, as it determines the rest of the factors. For a clear idea about one’s tax liability, one needs to enter the relevant details in the online income tax calculator.
How to calculate income tax for the FY 2022-23?
- Choose the correct age bracket.
- Enter annual income.
- Enter leave travel and home rent allowance deductions.
- Under the following sections, select investments and eligible deductions
- Section 80C
- Section 80CCD9(1B)
- Section 24B
- Section 80E
- Section 80G
For the applicable sections, individuals can enter ‘0’. Following these steps, individuals can see tax payable under old and new tax regimes for FY 2022-23.
Apart from this, one should be aware that the amount of payable income tax is not the same for every individual. The tax applicable as per income tax calculator varies across age groups and tax regimes (old or new).
Benefits of filing income tax online
Individuals should opt for filing income tax returns online for the following benefits:
- Unlike offline filing, this process is quick and convenient.
- Fastidiously offers confirmation receipt and filing status updates.
- Promotes faster electronic tax refunds.
- Guarantees a secured platform to share confidential details
- Offers error-free service at competitive rates.
- Ideal option for avoiding a late penalty.
In addition, online income tax filing also serves as a valid address and income proof. Furthermore, it helps get insurance, approval of loan applications, and VISA processing.
Eligibility criteria for filing an income tax return
Residents belonging to the following entities need to file ITR in India:
- Artificial judicial persons
- Body of Individuals (BOI)
- Religious/ charitable trusts
- Local authorities
- Associations of Persons
- Hindu Undivided Family (HUF)
However, this applies only to residents whose total income is more than the basic exemption limit. Anyone with a total income below the mentioned limit should file a NIL return. Moreover, individuals must be aware of the ITR form they use.
Details required for filing income tax return online
For e-filing income tax returns, individuals need to keep the following documents ready:
- A valid and Government of India approved ID proof and address proof.
- Bank account details of the chosen financial year.
- Proofs of interest income and Form 16.
- Deduction details as per Section 80C, 80D, and as under Chapter IV-A.
- Proof of TDS paid and other advance taxes.
Furthermore, salaried individuals should also be aware of the different tax exemptions.
Tax exemptions for salaried individuals
The tax exemptions are available for salaried individuals:
- Leave travel allowance for domestic travel
- Telephone bills, meal coupons, and other work-related expenses
- Partial or total house rent allowance
- A standard deduction of Rs. 50,000 as per an individuals salary
Apart from these basics, deductions under Section are also as mentioned below:
- Section 80C, 80CCC, 80CCD(1)
- Section 80D that includes health insurance premiums
- Home loan repayments under Section 80C, 24B, 80EE/ 80EEA
- Education loan interest under Section 80E
- Section 80G that includes contributions to charitable organizations
- Savings account interest tax exemption, under Section 80TTA
Note: These exemptions or deductions only apply to the old tax regime. The new tax regime includes very minimum deductions.
Does everyone need to file an income tax return?
According to the old tax regime, the basic exemption limit is as mentioned below:
- An exemption of Rs. 2.5 Lakhs for residents below 60 years.
- Rs. 3 Lakhs exemption for senior citizens aged between 60 to 80 years.
- Super-seniors who are 80 and above get an exemption of Rs. 5 lakhs.
In addition, individuals should know how to calculate income tax returns under the old and new tax regimes.
How to calculate income tax under the old tax regime?
Under the old tax regime, individuals get standard deduction benefits. In addition, residents can even claim special allowances and tax exemptions on leave travel and home rent allowance. Apart from this, Section deductions like 80TTA, 80D and 80C are also available. Residents should be aware that cess is added as a part of the total tax payment.
How to calculate income tax under the new tax regime?
Certain deductions like leave travel and home rent allowance are not exempted under the new tax regime. However, deductions under Section 80D, 80E, 80G, and 80C are applicable. Residents should include income from all the sources to deduct their total gross income. Besides these, cess is added to the total income tax payment.
Besides this, most financial institutions offer pre-approved offers to all their customers. It can accelerate the overall home loaning processing time. Potential borrowers’ can check their pre-approved offers by simply providing their name and contact number.