Income Tax Calculator

You should follow the steps mentioned below to use the income tax calculator online:

Step 1:Visit Income Tax Calculator online on Max Life Insurance.

Step 2: Select the financial year for which you want to calculate taxes for from the dropdown – 2024-25, 2023-24 or 2023-23. Also, select your age if you are regular individual (0-60 years), senior citizen (60-80 years) or super senior citizen (80 and above) and click on “Next” button.

Step 3:Enter your Gross Income from Salary, Income from Interest, Rental Income and Income from Other Sources and click on “Next”.

Step 4:In the next step, enter your tax-saving investment details to claim Deductions under Section 80C, HRA u/s 10 (13A), Medical Insurance u/s 80D, NPS u/s 80CCD, Interest on Housing Loan, Bank Interest (80TTA), Donation u/s 80G or any other deductions that you want to claim. After entering all the tax-saving investments amount, click on “Next” to proceed.

Step 5:Once you enter all the details mentioned above, the income tax calculator will calculate tax online on the basis of old and new tax regime both.

If you didn’t exhaust the upper limit on Section 80C (Rs.1.5 lakh), you can save tax online under Section 80C by clicking on the “Views Plans” button.

To calculate tax online using Income tax calculator 2023, you need to compute your gross income. Gross income is classified into 5 categories while filing ITR online:

• Income from Salary
• Income from Business or Profession
• Income from House Property
• Income from Capital Gains
• Income from Other Sources

Also, you can claim a Standard Deduction of Rs. 50,000 from your annual income for the financial year 2022-23 and FY 2023-24 under the old tax regime but not under the new regime. However, from FY 2024-25 onwards, standard deduction of Rs. 50,000 is available under both the new tax regime and the old tax regime as per Budget 2023 announcement.

In the Union Budget 2023, the tax slabs of the Old Tax Regime for FY 2023-24 have remained the same as FY 2022-23. However, the number of income tax slabs has been reduced for the new tax regime for FY 23-24 as compared to FY 22-23.

Let’s understand these categories in detail below.

Income from Salary: Under this you need to add monthly income that you are earning by working for an employer. If you are a salaried employee, you can add your income under salary head. The salary you receive consists of components like Basic Salary, House Rent Allowance (HRA) , Dearness Allowance, Gratuity, Provident Fund, travel allowance, or any other allowances. You can check all these components in your Salary Slip that your employer will be providing you every month

Income from Business or Profession: Under this head you need to enter all the income from any business activity or by practicing a profession. The income that one earns through business or profession is also taxable

Income from House Property: Income from House Property includes all the rent income that you are earning through renting out any residential or commercial property. You will be required to pay taxes on rental income as well

Income from Capital Gains: Capital Gains include any profit or gain through sale or transfer of capital assets like stocks, mutual funds, property or real estate etc. Capital Gains are divided into Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG) on the basis of duration for which you stay invested. This categorization is also necessary as the taxation differs for STCG and LTCG

Income from Other Sources: Any income that does not fall under the heads mentioned above will come under Other Sources. This will include any income from lottery, gift (more than Rs.50,000 per annum), bank interest etc.

Currently two different Income Tax regimes co-exist in India and individuals can opt to pay taxes under either of the new income tax regime old the old tax regime. In the case of the new tax regime, lower rates of taxation are applicable to higher income groups.

Although you can get an idea of all the tax rates by using an income tax calculator, it is essential to know that the tax slab rates depend upon your age and income group as well as the tax regime you have chosen. After knowing all such details, you can calculate to know the details of your tax liabilities.

Using an income tax calculator helps taxpayers to calculate net taxable income and tax liabilities. Besides, the income tax calculator assesses your taxes based on your taxable income group, tax slab rates and deductions.

Apart from giving accurate results, an income tax calculator also makes it easy to plan savings and investments. The income tax calculator available online can be used anywhere by entering various figures to find out how to save maximum on the taxes legally.

Since the online income tax calculator can give accurate results, you can also plan short-term and long-term financial investments accordingly.

If you are skeptical about how to calculate income tax for the financial year 2023-24, you can use an income tax calculator.

Income tax must be filed by an individual whose taxable income exceeds the maximum exemption limit. In other words, any individual whose income falls within the tax slabs has to file income tax. As per the old tax regime, the exemption limit for individuals aged less than 60 years for FY 2023-2024 is Rs 2.5 lakh in a financial year. For senior citizens i.e. individuals aged 60 years and up to 80 years, the exemption limit is Rs. 3 lakh. While, super-senior citizens aged 80 years or above are exempt from income tax for income up to Rs. 5 lakh under the old income tax regime for FY 2023-24.

No, you can only calculate your tax payable for the financial years - 2024-25, 2023-24 and 2022-23 with income tax calculator 2024.

An income tax return is an official statement that you submit to tax authorities as proof of income earned and income tax paid for the applicable financial year. Filing income tax return can offer numerous benefits to taxpayers and few of these are:

1. Quick Loan Approval:

Getting a loan approved is not a quick and easy process. But it can get quicker if you file your income tax return. This is to say, filing income tax can aid individuals to apply for loans. It is mandatory as almost all the banks require an individual to show a copy of tax returns.

2. Visa Applications:

For individuals planning to emigrate or work abroad, immigration authorities often require proof of income tax payment and filing of past returns. This is done by immigration authorities to assess the tax compliance as well as verify income level of the applicant.

3. You Can Claim a Tax Refund:

Taxpayers can get a refund if they have a refund due from the Income Tax Department. However, this can only be done if you file your Income Tax returns.

4. Eligibility to Offset Losses

If you have sold an investment at a loss, you can offset this loss against present as well as future investment gains. However, to receive this benefit of offsetting losses against gains, you need to mandatorily file your income tax return.

Even though the new tax regime offers lower income tax slab rates, many of the deductions under the old tax regime cannot be availed under the new tax regime. Notable among these are the 80C and 80D tax deductions that can only be availed if you are opting for the old tax regime.

But a few types of income are exempt from tax under the new tax regime. These include:

• Interest received from post office savings accounts up to Rs. 3, 500 in a FY for single account and up to Rs. 7,000 in a FY for joint account.
• Gratuity payout obtained from employer. Maximum up to Rs. 20 lakh during lifetime.
• Maturity proceeds of Life Insurance policy
• Contributions made into EPS/NPS account by the employer up to Rs. 7.5 lakh in a FY
• nterest received on Employee Provident Fund (EPF) account balance for annual contribution of up to Rs. 2.5 lakh
• Interest earned and maturity amount received from Public Provident Fund (PPF), but without 80C tax deduction benefit on investments
• Interest earned and maturity amount received from Sukanya Sammriddhi Yojana account, but without 80C tax deduction benefit on investments
• Gifts up to Rs. 5000 in a FY received from employer
• Allowances such as food coupons, travel cost, tour allowance, etc. provided to employee for performance of official duties
• Allowances such as food coupons, travel cost, tour allowance, etc. provided to employee for performance of official duties