[ecis2016.org] Our step-wise guide will help you calculate the exact income tax amount using the income tax calculator on the Income Tax Department’s official portal.
What is an income tax calculator?
The Income Tax Department’s income tax calculator is an online tool that helps you to arrive at your total tax liability. However, to use the tax calculator, the taxpayer needs to have all his income tax-related details.
You are reading: Income tax calculator: Step-wise guide to using an official tax calculator
Types of incomtax calculators
The I-T Department offers two types of income tax calculators:
Income tax calculator
This calculates the total income and income tax along with interest under Section 234 A/B/C. 234A, 234B and 234C, with interest charged on:
- Delay in filing ITR.
- Non-payment or short-payment of advance tax.
- Non-payment or short payment of individual instalments or instalments of advance tax.
Tax calculator
The tax calculator calculates the income tax based on your taxable income. To use the tax calculator, you must be aware of the deductions and/or penalty amounts or any delays.
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How to use an income tax calculator?
Step 1: On the Income Tax Department website, click on ‘Tax Tools’ under ‘Tax Information & Services’.
Step 2: On the next page, click on the ‘Income and Tax Calculator’ option.
Before you proceed, check the category for tax calculation. For example, check ‘Individual/HUF’ if that is your category.
Step 3: There are several details you have to select in this step: These include:
- Assessment year: If you want to calculate the tax on the income earned during FY2021-22, choose AY2022-23. Read our guide to understand the difference between financial year and assessment year.
- Taxpayer: Since you have already selected the taxpayer type, this section will be pre-filled. In case you forget, you will have to choose from individual/HUF, Firm/LLP, company, non-resident, trust/societies and tax deductor.
- Whether opting for taxation under Section 115BAC*: In case you wish to pay income tax under the new tax regime, select ‘YES’. If you want to continue with the old tax regime, select ‘No’.
- Select your gender: Select from Male/Female/Senior Citizen.
- Residential status: Choose from resident, non-resident (NRI) and Not Ordinary Resident (NOR).
- Income from salary (Income from salary after standard deduction of Rs 50,000): For example, Rs 10,00,000.
- Income from house property: In case you are earning any income from house property or suffering any loss on account of the same, click on the show details option, after which a detailed dialog box would open. Enter all the applicable details. In our example, we are using Rs 2 lakhs home loan interest payment as loss from self-use house property.
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Read our guide to know what constitutes income from house property
- Capital gains: Input income from house property, if any. In our example, we are using Rs 20 lakh of long-term capital gains on the sale of property, to be taxed at 20%.
- Income from other sources: Enter the income earned from other sources, if any.
- Profits and gains of business or profession (enter profit only): Enter the profit earned from business or profession.
- Agricultural income: Provide agricultural income, if any. In our example, we are putting it at Rs 5,000.
Read our guide to know what constitutes agricultural income
- Deductions: Several deductions are available to decrease your income tax liability. Enter the deductions you want to claim.
Step 4: If you claim deductions, the income tax calculator would show your net taxable income, which works out to be Rs 26.50 lakhs in our example.
The total tax liability, according to the income tax calculator, amounts to Rs 4,60,200 (Rs 4,42,500 income tax + Rs 17,700 surcharge).
If you do not claim any deductions, the net taxable income would be Rs 28 lakhs (in our example). The income tax liability amounts to Rs 4,91,400 (Rs 4,72,500 taxes + Rs 18,900 surcharge).
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How to use a tax calculator?
Step 1: Same as Step 1 of Income Tax Calculator.
Step 2: On the next page, click on the ‘Tax Calculator’ option.
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Here too, check the category box at the top of the page.
Step 3: Fill in all the required details – assessment year, taxpayer type, if you want to opt for the new tax regime, gender, residential status, and net taxable income. The tax calculator will show the tax liability.
List of tax saving instruments |
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List of main sections offering income tax deduction |
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New and old tax slabs
Find out the difference between new and old tax regimes!
New tax regime slab
| Income | Tax slabs |
| Up to Rs 2.50 lakhs | Nil |
| From Rs 2.50 lakhs-Rs 5 lakhs | 5% |
| From Rs 5 lakhs-Rs 7.50 lakhs | 10% |
| From Rs 7.50 lakhs-Rs 10 lakhs | 15% |
| From Rs 10 lakhs-Rs 12.50 lakhs | 20% |
| From Rs 12.50 lakhs-Rs 15 lakhs | 25% |
| Above Rs 15 lakhs | 30% |
[ecis2016.org] Know all about income tax slab
Old income tax regime
Income tax slabs for individuals aged below 60 years & HUF
| Income | Tax slabs |
| Up to Rs 2.50 lakhs | Nil |
| From Rs 2.50 lakhs-Rs 5 lakhs | 5% |
| From Rs 5 lakhs-Rs 7.50 lakhs | 20% |
| From Rs 7.50 lakhs-Rs 10 lakhs | 20% |
| From Rs 10 lakhs-Rs 12.50 lakhs | 30% |
| From Rs 12.50 lakhs-Rs 15 lakhs | 30% |
| Above Rs 15 lakhs | 30% |
Income tax slabs for individuals aged between 60-80 years
| Income | Tax slabs |
| Up to Rs 3 lakhs | Nil |
| From Rs 3 lakhs-Rs 5 lakhs | 5% |
| From Rs 5 lakhs-Rs 10 lakhs | 20% |
| Over Rs 10 lakhs | 30% |
Income tax slabs for individuals aged over 80 years
| Income | Tax slabs |
| Up to Rs 5 lakhs | Nil |
| From Rs 5 lakhs-Rs 10 lakhs | 20% |
| Above Rs 10 lakhs | 30% |
Source: https://ecis2016.org/.
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