When you need to calculate your taxes but you dont have the time to discuss with finance professional, you have the option to use a tax calculator India. These user-friendly financial tools are truly a blessing for those who are worried with the calculation of their taxes.
Tax calculator India: What are the principal benefits?
Using a calculator for computing your taxes is the ideal means to save your money and time. This also saves a lot of your effort that you can invest in other areas. After all, it is your hard earned money. This user-friendly tool will also help you understand how your tax liability can be lowered by putting your money in different types of investments. When you use this tool, you get the perception of how the right investment of even one rupee can make a significant difference by cutting down your liability.
You will find a wide array of tax calculators on the Internet and they have been planned by taking into consideration the rates and elements of the Income Tax Act, 1961. It is an all-inclusive tool that supplies you the precise figure of tax liability.
This tool is an effective calculator that you can use in different ways. You dont have to hurry to your tax consultant at the end of the year. This tool helps you figure out your income tax liability and needs the inputs given below:
Personal data (age, sex and city of residence)
Thorough break-up of salary (basic, HRA, allowances, bonuses etc.)
Deductions and exemptions (rent paid, interest paid on housing loans, etc.)
Investments made under section 80C of IT Act which allow you to get tax benefits
Exemptions under section 80D to 80U (Educational Loan, Health Insurance)
Important facts that you should know about tax calculator India
This tool is intended for estimation of income tax on salary. Other sources of income such as capital gains, business, house and property are not taken into account.
Despite every endeavor has been taken to include proper tax regulations, taking into consideration the hugeness of the field, outcomes may differ.
The financial tool may only be applied to work out a ballpark amount. For computation of your precise liability, you need to seek advice from a competent tax consultant or chartered accountant.
For information on income tax slabs, you can refer to dependable resources.
Educational cess @3% on tax along with surcharge and surcharge @10% is incorporated in the tax liability, if appropriate.
Section 80C permits an overall deduction of upto Rs. 1 lakh from yearly taxable earnings.
Caps on deductions under section 80D to 80U have been thought for senior citizens and people who have 80% disability. These would need modification if deductions for other categories have to be worked out.
The take home monthly salary is ascertained by deducting income tax, professional tax and employees contribution to Provident Fund from data available in hand.