Income Tax calculator

Income Tax calculator

According to  Income Tax Act,1961 Income Tax Calculator is use for calculation of income tax payable on total income earn during the relevant financial year immediately preceding the assessment year. While filing income tax return every assessee has to pay income tax payable  on  total income of an assessee.  Now question arise how i can know  what amount need to pay on a particular total income  for a assessment year. Any assessee may know  his/her income  tax payable for a particular assessemnt year with help of income tax calculator.

While using Income Tax calculator some important points should keep in mind.

1.Assessment year section 2(9)

Assessment year means the period of 12 months commencing on the first day of April every year and end on 31 March of next year.

Example:

Assessment year 2021-22:  Start from 1 April 2021 and end on 31st March 2022

Income tax will be clculated  for assessment year 2021-22 total income earned during the relevant previous year.  Prevrious year  for assessment year 2021-22 is  start from 1st April 2020 to 31 March 2021.

2.Taxpayer

There are various type of taxpayer like

Individual

HUF

AOP/BOI

Domestic Company

Foreign  Company

Firm (partnership firm)

Limited Liablities partnership

Coperative society’s

Pease choose correct option

3.  If individual than select

Normal

Senior citizen

Super senior citizen

Because exemption are applicable on age group basis

Example

Basic exemption for individual Rs.2,50,000

Seniro citizen Rs.3,00,000

Interest deduction also availabe on age group basis

Normal Rs.10,000

Senior Citizen Rs.50,000

4.Residential status section 6

An assessee may either be a

1. Resident of India

2. Non Resident of India

When an individual is said to be resident of in India if he/she satisfies  the following two conditions:

1.He is stay in India for a period or periods total days to 182 days or more in the relevant previous year.

2. He is stay in India for 60 days or more suring the relevant previous year and has been in India for 365 days or more during the previous year immediately preceding the relevant previous year.

5.Income from salary

Now assessee should put taxable salary  under the head income from salary means figure should put after deduction allowable under the head salary salary  like

Standard  deduction

House rent allowance deduction etc.

 6.Income from House property

There are two type of property under the head of  income from hosue property

1.Self occupied mean a person  himself living such property but there may be interest on borrowing  on loan during the relevant previous year.

2. Let out property

Such type of property  rent received by owner and there are various  deducation allowable under the head income from house property like

Municipal  Tax

Unrealise rent during the previous year

30% of  maintenance  deduction

Interest on Loan paid during the previous year

7. Income from Capital gain

Capital  gain under the income from capital gain there are two type of capital gains

1.Short term capital gain

short term capital gain  not covered under section 111A

short term capital gain   covered under section 111A

2.Long term capital gain

Long term capital gain chargeable @ 20%

Long term capital gain chargeable @ 10%

Long term capital gain  covered under section 112A

8. Income from other source

Income from interest

Income from commission

Other income

9.Agriculture income

If any agriculture income earned during the relevant  prious year.

10. Various Deduction

Accoring to  chapter VIA there are various deduction available to assessee if he/she satisfies  cartain condition of particular section.

Deduction 80 C

Life insurance premium

Payment to annuity  plan

Contribution to PF

Repayment of housing loan

Section 80D

Health Insurance premium paid

and allowable  other deductions

11.Income Tax after relief section  87A

12. Tax paid

Tax paid mean any advance tax

Tax Deducted at Source

If you fill all correct information than only correct tax payable will reflect on the  income tax calculator. So  please first collect all relevant  above mentions information  before use of income tax calculator.

 

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