Income Tax Calculator
The Income Tax Calculator helps you estimate the tax you owe based on your income and applicable tax rules. It takes into account your salary, deductions, exemptions, and other factors to give you a clear understanding of your tax liability.
Income Tax Calculation - An Overview
Individuals who fall under the taxable income bracket are obligated to pay a certain percentage of their annual income in taxes. This tax can be collected in two main ways: through Tax Deducted at Source (TDS) from their monthly salary or paid directly via the Central Board of Direct Taxes (CBDT) portal when filing income tax returns.
For people with income from other sources, the tax must be paid online through the income tax returns portal to ensure compliance with tax obligations. The Union Budget for 2023–2024 introduced updates that are now reflected in the new tax regime calculator, which helps taxpayers calculate their tax liability based on the latest tax slabs and regulations. This system simplifies the tax calculation process, making it easier for individuals to determine and pay their due taxes.
How to Use the Online GTS Income Tax Calculator
Using the Income Tax Calculator for AY 2024-25 is simple and straightforward. Follow these steps to calculate your income tax:
1. Select the Assessment Year: Choose the assessment year for which you want to calculate your tax (e.g., AY 2024-25).
2. Select Your Age: Choose your age group from the provided options (e.g., below 60, 60-80, above 80).
3. Enter Income Details:
● Salary: Enter your monthly or annual salary (before deductions).
● Additional Income: Include details of other income sources such as rental income, annual interest on house loans (for both self-occupied and rented properties), and income from other sources.
4. Enter Deduction Details: Provide information on various tax deductions under sections such as:
● Section 87A: Rebate on income tax.
● Section 80C: Deductions for savings and investments (e.g., PPF, NSC).
● Section 80CCD (1B): National Pension Scheme (NPS) contributions.
● Section 80D: Deductions for health insurance premiums.
●Section 80G: Donations to charity.
● Section 80E: Interest on education loans.
● Section 80TTA/80TTB: Interest on savings accounts and fixed deposits.
● Section 80GG: Rent paid.
5. Include Student Loan Deposits (if applicable): Enter any details for deductions related to student loan interest payments, if applicable.
6. Click ‘Calculate’: After filling in all necessary details, click the “Calculate” button to determine your tax liability.
The calculator will provide accurate tax calculations based on the new tax regime, considering all the details you’ve entered.
How to Calculate Income Tax for Salaried Persons
To calculate income tax for salaried individuals, you can use an online salary tax calculator, which takes into account several key factors:
1. Annual Earnings: Your total salary and any additional profits.
2. Other Income: Earnings from other sources like rental income, investments, etc.
3. Tax Exemptions: Any applicable exemptions (e.g., HRA, transportation allowance).
4. Deductions: Contributions to retirement funds, insurance, or other eligible deductions.
Once you enter this data accurately, the calculator will provide your total tax liability. The tax you owe, after accounting for TDS (Tax Deducted at Source), can be paid online using Challan 280.
If you’ve overpaid taxes, the government will refund the difference within 30 days of filing your return. However, if you file your returns after the deadline, you may incur penalties and interest under Section 234A. Generally, salaried individuals need to file their income tax returns by July 31st of the assessment year. Keep track of the filing deadline to avoid penalties.
Calculating Total Income Tax Liability
Calculating your total tax liability is simple using a new tax regime calculator. However, if you prefer to calculate it manually, use the following formula:
Taxable Income = Gross Income – (Deductions + Exemptions)
● Gross Income: This includes your basic salary, HRA (House Rent Allowance), special allowances, transport allowance, and any other salary-related benefits.
● Tax-Free Benefits: Some benefits may be tax-free, such as travel expenses or phone bill reimbursement, which are not included in the taxable income.
● Exemptions: If you live on rent and receive HRA, you may be eligible to claim an exemption on a portion of the HRA.
After calculating your taxable income, you can use the applicable tax rates to compute your tax liability.
Example of Income Tax Calculation
Let’s consider Mr. Sunil and calculate his income tax based on both the Old Regime and the New Regime.
Income Details:
• Basic Salary: ₹1,00,000 per month = ₹12,00,000 annually
• HRA: ₹50,000 per month = ₹6,00,000 annually
• Special Allowance: ₹21,000 per month = ₹2,52,000 annually
• LTA (Leave Travel Allowance): ₹20,000 annually
• Rent Paid: ₹40,000 per month (he resides in Delhi)
Breakdown of Income and Deductions:
|
Nature |
Amount |
Exemption/Deduction |
Taxable (Old Regime) |
Taxable (New Regime) |
|
Basic Salary |
₹12,00,000 |
– |
₹12,00,000 |
₹12,00,000 |
|
HRA |
₹6,00,000 |
₹3,60,000 (HRA Exemption) |
₹2,40,000 |
₹6,00,000 |
|
Special Allowance |
₹2,52,000 |
– |
₹2,52,000 |
₹2,52,000 |
|
LTA |
₹20,000 |
₹12,000 (LTA Exemption) |
₹8,000 |
₹20,000 |
|
Standard Deduction |
– |
₹50,000 (Standard Deduction) |
₹50,000 |
₹50,000 |
|
Gross Total Income |
– |
– |
₹16,50,000 |
₹20,22,000 |
Mr.Sunil earned ₹8,000 from interest on his savings account and ₹12,000 from fixed deposit interest during the fiscal year. In addition, he made several tax-saving investments, including ₹50,000 in a PPF, ₹20,000 in ELSS, an LIC premium of ₹8,000, and ₹12,000 towards medical insurance. Below are the deductions Sunil can claim under the old tax regime.
|
Nature |
Maximum Deduction |
Eligible Investment/Expense |
Amount Claimed |
|
Section 80C |
₹1,50,000 |
PPF ₹50,000, ELSS ₹20,000, LIC Premium ₹8,000, EPF Contribution ₹1,44,000 |
₹1,50,000 |
|
Section 80D |
₹25,000 |
Medical Insurance Premium ₹12,000 |
₹12,000 |
|
Section 80TTA |
₹10,000 |
Savings Account Interest ₹8,000 |
₹8,000 |
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | ₹16,50,000 | |
| Income from Other Sources | ₹20,000 | |
| Gross Total Income | ₹16,70,000 | |
| Deductions | ||
| 80C | ₹1,50,000 | |
| 80D | ₹12,000 | – |
| 80TTA | ₹8,000 | ₹1,70,000 |
| Gross Taxable Income | ₹15,00,000 | |
| Total tax on above (including cess) | ₹2,73,000 |
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | ₹20,22,000 | |
| Income from Other Sources | ₹20,000 | |
| Gross Total Income | ₹20,42,000 | |
| Gross Taxable Income | ₹20,42,000 | |
| Total tax on above (including cess) | ₹3,25,104 |
| Income Range | Exempt from Tax | Tax Amount |
|---|---|---|
| Up to ₹3,00,000 | Exempt | 0 |
| ₹3,00,000 to ₹6,00,000 | 5% (5% of ₹6,00,000 less ₹3,00,000) | ₹15,000 |
| ₹6,00,000 to ₹9,00,000 | 10% (10% of ₹9,00,000 less ₹6,00,000) | ₹30,000 |
| ₹9,00,000 to ₹12,00,000 | 20% | ₹45,000 |
| ₹12,00,000 to ₹15,00,000 | 20% (20% of ₹15,00,000 less ₹12,00,000) | ₹60,000 |
| More than ₹15,00,000 | 30% (30% of ₹20,42,000 less ₹15,00,000) | ₹1,62,600 |
| CESS | 4% of total tax (₹15,000 + ₹30,000 + ₹45,000 + ₹60,000 + ₹1,62,600) | ₹12,504 |
| Total Income Tax | ₹3,25,104 |
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime |
|---|---|
| 0.0 to ₹2.5 Lakhs | NIL |
| ₹2.5 lakhs to ₹3.00 Lakhs | 5% (tax rebate u/s 87a is available) |
| ₹3.00 lakhs to ₹5.00 Lakhs | 10.00% |
| ₹5.00 lakhs to ₹7.5 Lakhs | 15.00% |
| ₹7.5 lakhs to ₹10.00 Lakhs | 20.00% |
| ₹10.00 lakhs to ₹12.50 Lakhs | 25.00% |
| ₹12.5 lakhs to ₹15.00 Lakhs | 30.00% |
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime (Senior Citizens) |
|---|---|
| 0.0 to ₹2.5 Lakhs | NIL |
| ₹2.5 lakhs to ₹3.00 Lakhs | 5.00% |
| ₹3.00 lakhs to ₹5.00 Lakhs | 5.00% |
| ₹5.00 lakhs to ₹7.5 Lakhs | 10.00% |
| ₹7.5 lakhs to ₹10.00 Lakhs | 15.00% |
| ₹10.00 lakhs to ₹12.50 Lakhs | 20.00% |
| ₹12.5 lakhs to ₹15.00 Lakhs | 25.00% |
| Above ₹15 Lakhs | 30.00% |
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime (Super Senior Citizens) |
|---|---|
| Up to ₹2,50,000 | NIL |
| ₹2,50,001 to ₹5,00,000 | 5.00% |
| ₹5,00,001 to ₹7,50,000 | 10.00% |
| ₹7,50,001 to ₹10,00,000 | 15.00% |
| ₹10,00,001 to ₹12,50,000 | 20.00% |
| ₹12,50,001 to ₹15,00,000 | 25.00% |
| Above ₹15,00,000 | 30.00% |
Income Tax Exemptions in India
1. Section 87A: Individuals with an income under ₹5 lakh can claim a tax rebate of up to ₹12,500.
2. Section 80C: Offers exemptions on up to ₹1.5 lakh of investments in tax-saving instruments such as:
Public Provident Fund (PPF)
National Savings Certificate (NSC)
Unit-Linked Insurance Plans (ULIPs)
Equity-Linked Savings Scheme (ELSS)
Tax-saving Fixed Deposits
3. Section 80CCD (1B): Provides an exemption on contributions up to ₹2 lakh to the National Pension System (NPS).
4. Section 80D: Offers tax exemption of:
Up to ₹25,000 on medical insurance premiums for individuals.
Up to ₹50,000 for senior citizens.
5. Section 80G: Donations to eligible charitable organizations are fully exempt from tax.
6. Section 80E: Offers a 100% tax deduction on the interest paid on student loans for up to 8 years.
7. Section 80TTA/80TTB:
Section 80TTA: Exempts savings account interest income up to ₹10,000 from tax.
Section 80TTB: Provides senior citizens with an exemption on interest income up to ₹50,000 from all sources.
Section 80GG: Exemption on income used for paying rent (House Rent Allowance – HRA) for individuals who do not receive HRA as part of their salary.
Why Choose GTS Income Tax Calculator
Income tax calculation can be complex due to frequent amendments by the government. The GTS Income Tax Calculator simplifies this process for you. Here are some reasons why you should choose it:
1. User-Friendly: The calculator is very easy to use, making the process smooth and hassle-free.
2. Free and Accurate: It’s completely free of charge, providing accurate results based on the latest tax rates.
3. Updated Regularly: The calculator is updated as per the new tax regime, ensuring it reflects the most recent government changes.
4. Accessible Anytime, Anywhere: You can use the calculator anytime and from anywhere, making it convenient and flexible for you.
Additionally, GTS offers income tax filing services, allowing you to consult a tax professional and resolve any queries you may have.
FAQ
Gross income encompasses all the money you earn, including wages, business income, capital gains, retirement distributions, and other sources of income. It also includes any additional revenue streams such as rental income or dividends. Adjustments to gross income can be made for various factors, such as tuition fees, student loan interest, alimony payments, or contributions to retirement accounts.
Professional tax is a direct tax deducted by your employer from your gross salary. It is levied by the state government, and the amount varies depending on the state in which you reside. The maximum amount payable for professional tax is ₹2,500 annually. The applicable tax slabs for professional tax are used to determine the amount of tax deducted from your salary.
Not everyone is required to file an Income Tax Return (ITR). However, individuals must file their ITR if their total professional income for the previous year exceeds ₹10 lakh. Additionally, if the total Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) amounts to ₹25,000 or more during the year, an ITR must be filed. For senior citizens, this threshold is raised to ₹50,000 for TDS or TCS in a financial year.
If your income is below ₹5 lakh, no tax will be deducted. However, if your income exceeds ₹5 lakh, 20% of your salary will be deducted as tax. The tax rate will increase progressively with higher income, based on the applicable tax slabs.
No, the income tax calculator does not calculate Tax Deducted at Source (TDS). However, it helps determine your overall tax liability for the assessment year based on your income and deductions.