An income tax calculator is a tool that enables you to estimate the amount of income tax you are required to pay based on your earnings as per applicable tax laws.
Financial Year
Age Group
An online income tax calculator takes into account factors such as your taxable income, deductions, exemptions, and tax brackets to calculate your final tax liability. By entering the correct information, such as annual income and filing status, you can help the calculator approximate your tax obligation. This allows you to plan your finances better, make informed decisions, and ensure compliance with tax regulations.
The income tax calculator given on this page complies with the updated income tax regulations announced in the Union Budget.
An online income tax calculator is a simple tool. It is designed to deliver results based on simple input provided by the users, such as annual income, deductions, exemptions, and assessment years.
Follow the steps below to use the Angel One income tax calculator:
Select the assessment year. For example, if you are looking at the current financial year, i.e., 2023-2024, then the assessment year is 2024–25. Select the correct assessment year from the dropdown.
Select your age from the dropdown. In India, income tax rates differ depending on the taxpayer's age.
In the next step, enter your gross salary or income. You must include income from other sources, such as rental income, interest paid on a home loan for self-occupied property, and interest paid on a home loan for rented property, as well.
Enter the deductions that apply to your income, such as under Sections 80C, 80CCD (1B), 80D, 80G, 80E, 87A, 80TTA, 80TTB, and 80GG. You must also include whether you are paying interest on an education loan.
Provide the details of HRA exemptions. To calculate how much HRA exemption is available, enter your basic salary, DA allowance, HRA allowance, and the total rent paid annually. Finally, enter whether you are living in a metropolis or not.
The calculator will calculate your approximate tax liabilities based on the details you enter.
Your total income is composed of your basic salary, HRA, special allowance, transport allowance, and any other allowance. Some of these components of your total income, such as travel allowance and telephone bill allowance, are eligible for exemptions. If you are living in a rented property, you can claim an exemption in HRA. Moreover, a standard deduction of Rs. 50,000 is also given, which you can claim irrespective of the actual amount spent on travel or medical allowances. By entering the details, the calculator will demonstrate the total tax liability of the individual.
The government introduced the new tax regime in 2020. It has altered the tax slabs to offer taxpayers concessional tax rates. However, individuals filing under the new tax regime are not eligible for the various exemptions under HRA, LTA, 80C etc. To switch from the old to the new tax regime, the decision should be based on your income slab and the exemptions you are eligible for. Here are some ground rules you can apply:
If your deductions are less than Rs. 1.5 lakh, the new tax regime is more beneficial
If the total deduction amount is more than Rs. 3.75 lakh, the old regime will give you higher tax exemptions
For exemptions between Rs. 1.5 to Rs. 3.75, you can choose either a new or old tax regime depending on your income
The online income tax calculator offers several benefits, making it easier for individuals to manage their finances and tax obligations. The key advantages of income tax calculators are the following:
Accuracy: The calculator performs complex tax calculations accurately, eliminating the chances of manual errors.
Time-saving: It saves valuable time by automating the tax calculation process and eliminating the need for manual calculations.
Compare scenarios: By adjusting variables such as deductions, exemptions, and filing status, the user can explore different tax scenarios and make informed financial decisions.
Financial planning: The income tax calculator helps financial planning by providing a clear understanding of expected tax payments. It enables individuals to plan their budgets effectively and be prepared for their tax obligations.
Convenience: The calculator is accessible anytime from anywhere, enabling individuals to calculate their tax liabilities without relying on tax professionals.
Cost savings: You can use the calculator to identify potential deductions or credits you may have missed, potentially reducing tax liability and saving money.
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