For individuals whose total taxable income is above ₹5 lakhs, the tax rate discussed earlier would apply. If your total taxable income is less than ₹5 lakhs, you will get a rebate of ₹12,500 under section 87A. Step 4: Calculate your total tax liability Net taxable income = Gross taxable income – net taxable income You can easily subtract the total tax benefits from the gross taxable income. In this third step, you need to calculate the net taxable income. Total tax benefits = Investments under 80C+ Health insurance premium + savings account interest + home loan interest + others You can cut your taxable earnings by investing in tax saving options such as Equity Linked Savings Scheme (ELSS), and Public Provident Fund (PPF), available under section 80C of the Indian Income Tax. If you have made any tax-saving investments or are eligible for any exemptions, you need to compute the total benefits. Gross taxable income = Gross salary – HRA – LTA – Standard deduction + Income from other sources Now, you need to add the net salary with other income from different sources, such as interest income, capital gains from investments, and rental income, to come to your gross taxable income. To calculate your gross taxable income, you need to compute your net salary after subtracting your deductions, such as HRA, LTA, and standard deduction, from your gross salary. Step 1: Calculate your gross taxable income Here are the steps for the income tax calculation formula as per the old income tax slab: You can use our income tax calculator to estimate your total tax on income to figure out which tax regime you should choose.In this step, you need to include the expenses and investments available for deductions such as ELSS, term insurance premiums, NPS, donations to charities etc.Īfter hitting "Continue", you will see your total taxable income and the total tax that you need to pay under the tax regime, you have chosen. In this part, you can list down all the capital gains you have earned in the year through the sale of equity investments, unlisted shares, or debt investments. Next, you need to add the exemptions such as HRA, special allowance, and EPF contribution. Now, add your income details, such as your basic, gross salary, and income from other sources, such as interest on deposits and rental income. In the first step, you need to add the essential details such as your age, earnings, the type of house you are living in, rent that you pay if you are living in a rented house. This income tax calculator is very easy to use to instantly figure out tax on your income.
0 kommentar(er)
