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What is Income Tax Calculator?
Flexipayment’s Free Online Income Tax Calculator is an intuitive tool designed to assist taxpayers in estimating their income tax liability for a specific financial year. By inputting relevant financial details, users can quickly determine the amount of tax they owe, helping them plan their finances better and ensuring timely tax payments.
Looking for a Free online income tax calculator for FY 2023-2024? Try it now!
Calculate Your Income Tax for FY 2023-2024 Online for FREE
How to use the Income Tax Calculator for FY 2023-24 (AY 2024-25)?
- Input Income Details: Start by detailing your total annual income. This should encompass all income sources, including salary, rental income from house property, capital gains, business/profession income, and other income sources.
- Declare Deductions: Specify the deductions you’re claiming. This can range from investments under Section 80C to health insurance premiums under Section 80D.
- Choose Tax Regime: The government offers two tax regimes – the old (with deductions) and the new (mostly without deductions). Select the one applicable to you.
- Review Computation: Post input, the calculator will showcase a detailed breakdown of your tax liability, segregating it based on income sources and applicable tax rates.
How to calculate income tax?
Let’s consider the financial details of Mr. A for the FY 2023-24:
Total Annual Income:
- Salary: INR 10,00,000
- Rental Income from House Property: INR 3,00,000
- Interest Income from Savings: INR 50,000
- Capital Gains from Mutual Funds: INR 1,50,000 Total Income: INR 15,00,000
Deductions Claimed:
- Section 80C (Investments in PPF, LIC, etc.): INR 1,00,000
- Section 80D (Health Insurance Premium): INR 25,000
- Standard Deduction: INR 50,000
- Deduction for Interest on Housing Loan under Section 24: INR 25,000 Total Deductions: INR 2,00,000
Taxable Income Calculation: Total Income (INR 15,00,000) – Total Deductions (INR 2,00,000) = INR 13,00,000
Tax Computation (Assuming Mr. A is below 60 years and opts for the old tax regime):
- Up to INR 2,50,000: No Tax
- INR 2,50,001 to INR 5,00,000: 5% of (5,00,000 – 2,50,000) = INR 12,500
- INR 5,00,001 to INR 10,00,000: 20% of (10,00,000 – 5,00,000) = INR 1,00,000
- INR 10,00,001 to INR 13,00,000: 30% of (13,00,000 – 10,00,000) = INR 90,000 Total Tax Liability: INR 12,500 + INR 1,00,000 + INR 90,000 = INR 2,02,500
Cess: Health and Education Cess at 4% on INR 2,02,500 = INR 8,100
Total Tax Payable: Tax Liability + Cess = INR 2,02,500 + INR 8,100 = INR 2,10,600
So, based on the above computation, Mr. A’s total tax payable for the FY 2023-24 would be INR 2,10,600.
What are the exemptions/ deductions that are disallowed under the new tax regime?
- Individual or HUF opting for taxation under the newly inserted section 115BAC of the Act shall not be entitled to the following exemptions/deductions:
- Leave travel concession as contained in clause (5) of section 10;
- House rent allowance as contained in clause (13A) of section 10;
- Some of the allowance as contained in clause (14) of section 10;
- Allowances to MPs/MLAs as contained in clause (17) of section 10;
- Allowance for the income of minor as contained in clause (32) of section 10;
- Exemption for SEZ unit contained in section 10AA;
- Deduction for entertainment allowance and employment/professional tax as contained in section 16;
- Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. (Loss under the head income from house property for the rented house shall not be allowed to be set off under any other head and would be allowed tobe carried forward as per extant law);
- Additional deprecation under clause (iia) of sub-section (1) of section 32;
- Deductions under section 32AD, 33AB, 33ABA;
- Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35;
- Deduction under section 35AD or section 35CCC;
- Deduction from family pension under clause (iia) of section 57;
- Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). However, deduction under sub-section (2) of section 80CCD (employer contribution on account of the employee in notified pension scheme) and section 80JJAA (for new employment) can be claimed.
Following allowances shall be allowed as notified under section 10(14) of the Act to the Individual or HUF exercising option under the proposed section:
- Transport Allowance granted to a divyang employee to meet the expenditure for the purpose of commuting between place of residence and place of duty
- Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office;
- Any Allowance granted to meet the cost of travel on tour or on transfer;
- Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.
FAQs Income Tax Calculator
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Every individual, senior citizen and super senior citizen should file their income tax returns if they earn more than the exemption limit. For individuals, senior citizens and super senior citizens, the exemption limit is Rs.2.5 lakh, Rs.3 lakh and Rs.5 lakh respectively.
Also, if you earn less than the exemption limit and want to claim income tax refund then you should file your income tax returns to claim tax refund.
You can calculate your income tax online on the basis of your taxable income and income tax slab that you fall in. Your net taxable income is calculated after deducting all the tax saving income you made. After deducting all the deductions and exemptions, you are taxed on the basis of income tax slabs applicable on your income.
In the case of the old regime, The maximum limit of non-taxable income for an individual was set at Rs 2.5 lakh. However, you can also get a rebate of Rs 2,500 under section 87A if you have a total income of up to Rs 3.5 lacs for FY 2018-19. From FY 2019-20 onwards, the rebate has been increased to Rs 12,500 for an income up to Rs 5 lakh. So, that means an individual earning up to 5 lakh will not be required to pay any income tax from FY 2019-20 onwards. If you have tax saving investments under section 80C of up to Rs 1.5 lakh then you will not have to pay any taxes till Rs 6.5 lakhs.
In the budget 2023, In case of New Regime, The maximum limit of non-taxable income for an individual is set at Rs 3 lakh. However, you can also get a rebate of Rs 25000 under section 87A if you have a total income of up to Rs 7 lacs for FY 2023-24. So, that means an individual earning up to 7 lakh will not be required to pay any income tax from FY 2023-24 onwards. However, in the case of the old regime, the limit for rebate under section 87A is still 5 lakhs.
If the income of an individual is below the basic exemption limit then he is not required to file income tax returns. Though those who have income less than Rs 2.5L(old regime) or 3L(New Regime) and want to claim an income tax refund can only claim the refund by filing an ITR. Otherwise, it is mandatory to file income tax returns in any other case.
- Basic information such as PAN, Aadhar Card details, and current address.
- All the bank account details held in a financial year.
- Income proofs like current salary details, income from investments (like FDs, savings bank account) etc.
- All the deductions claimed under Section 80 or Chapter VI-A.
- Tax payment details such as TDS and advance tax payments.
