During the financial years, the most stressful work for every taxpayer is to manage his or her tax statements to pay. This paperwork consumes lots of time. This stress and last hours rush can be reduced by estimating the advance income tax payments. The easy way to calculation advance tax methods is by calculating the tax with the help of tax calculators.
An income tax calculator is a specially designed tool for taxpayers that not only helps calculate your tax from your net income but also suggests saving methods on your annual income in a legal way. The income tax calculator uses the significant information such as personal details, Gender, annual income, Applicable tax slabs, Deductions under Section 80C like ELSS, Term Insurance plans, ULIP, PPF, FDs, and national certificates, Deduction under section 80D like medical bills, and Home loan(Section 24B).
After filling the above input details in the tax calculator, it gives you proper details of income levels, tax liability, and investments. Then it shows you tax payable splits for total tax incomes.
How to calculate the income tax on the income tax calculator?
Firstly, to calculate income tax, taxpayers have to calculate their total net annual income from all the sources. It includes salary, House Property Incomes, capital gains, FD, investment profits, and other income sources. Now Add HRA and any other special allowance in it, then add deductions under 80c and 80 D. now, your total income is ready to be calculated.
How to use an income tax calculator?
For calculating the tax amount on the tax calculator, taxpayers are required to enter information relevant to tax in a calculator. It is mandatory that your overall income covers all income sources from salary and other sources like property incomes, income from FDs, Mutual funds, etc. after calculating, enter the following information step by step.
- Personal details include Name, Age, Gender, and house rent allowance.
- Annual Income.
- Applicable tax slab according to age and gender.
- Deductions under Section 80C. It includes Public provident funds, and Bank fixed deposits, National savings certificate, and Education loan.
- Deduction under Section 80D. It includes medical claims.
- Home loans under section 24B.
After filling this detail in the calculator, it shows you advance tax payment details and any dues.
There are always some doubts regarding income tax calculator that are
- Do I have to file an e-file income tax?
Yes, it is mandatory if your income is more than the tax rebate slab.
- What kinds of income should be calculated to calculate tax liability?
As per income tax guidance, your overall income is the sum of your all income sources.
Income tax calculators are work online and easy to operate. It is a convenient method of calculating income tax without taking any stress. During the deadline, income tax calculators save too much time. Further, they are free to use; many online financial websites made it free to use for taxpayers. This doesn’t need any charted accountants. It helps taxpayers to calculate by filling in some general details regarding their income.
