Your income is calculated by adding the basic salary, HRA, transport allowance, special allowance, perquisites, and other allowances altogether. Some of these allowances are exempted from income tax slab and to avail all the possible deductions, you need to calculate it well. AllIndiaITR provides you with a handy income tax calculator to make accurate calculations while also including your TDS and deductions.
A guide on using Income Tax Calculator
With the help of our automated tax calculation system, you just need to enter the required information in the given fields and click on the Calculate Your Taxes button. This will calculate the final amount after subtracting all the applicable deductions.
Also, who are new to filing taxes, it is a commonly believed that different tax rates are applied directly to the total amount. This is not the case though.
For example, if you are less than 60 years old and earning Rs 12 lakh annually, then you won’t be charged at 30% slab rate, which is Rs 3,60,000, directly on your total salary.
This is how it will be calculated:
First, if you are eligible for any deductions/exemptions, your taxable earnings will be evaluated.
Suppose, your taxable amount comes out to be Rs 11 lakh.
Now, total value will come in stages.
For the amount between Rs 250000 and Rs 500000, i.e. Rs 250000, you will be charged at 5%. This comes out to be Rs 12,500.
For the amount between Rs 500000 and Rs 1000000, i.e. Rs 500000, you will be charged at 20%. This comes out to be Rs 1 lakh.
For the amount between Rs 1000000 and Rs 1100000, i.e. Rs 1,00,000, you will be charged at 30%. And, this comes out to be Rs 30,000.
So, the total tax payable = Rs 12500 + 100000 + 30000
= Rs 1,42,500
Income from interest
Interest on education loan
Advance tax already paid