What is Income Tax Calculator?
The Income tax calculator is an easy-to-use online tool that helps you estimate your taxes based on your income after the Union Budget is presented. We have updated our tool in line with the income tax changes proposed in the Union Budget 2021-22.
How to use the Income tax calculator for FY 2021-22 (AY 2022-23)?
Following are the steps to use the tax calculator:
1. Choose the financial year for which you want your taxes to be calculated.
2. Select your age accordingly. Tax liability in India differs based on the age groups.
3. Click on 'Go to Next Step'
4. Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA, standard deduction, and so on. (if you want to know your tax liability under the old tax slabs)
Or else, just enter your salary i.e salary without availing exemptions such as HRA, LTA, standard deduction, professional tax and so on. (if you want to know your tax liability under the new tax slabs)
5. Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self occupied property.
6. Click on 'Go to Next Step' again.
7. In case, you want to calculate your taxes under the old tax slabs,you will have to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.
8. Click on 'Calculate' to get your tax liability. You will also be able to see a comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).
Note: Whichever field is not applicable, you can enter "0".
You can even get your tax computation on your mail.
How to calculate income tax? (See example)
Income tax calculation for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA, by using this HRA Calculator.
On top of these exemptions, a standard deduction of Rs 40,000 was introduced in budget 2018. This has been increased to Rs 50,000 in budget 2019.
In case you opt for the new tax regime, these exemptions will not be available to you.
Let's understand income tax calculation under the current tax slabs and new tax slabs (optional) by way of an example. Neha receives a Basic Salary of Rs 1,00,000 per month. HRA of Rs 50,000. Special Allowance of Rs 21,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 40,000 and lives in Delhi.
| 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 | 2,40,000 | 6,00,000 |
| Special Allowance | 2,52,000 | - | 2,52,000 | 2,52,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 | 20,000 |
| Standard Deduction | - | 50,000 | 50,000 | - |
| Gross Total Income from Salary | 16,50,000 | 20,72,000 |
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