The income tax you are liable to pay depends on your earnings in a financial year and the income tax slab applicable to it.
Every individual whose annual income exceeds a certain limit in a financial year is liable to pay income tax to the government. Those who fall under the taxable income category need to declare their earnings, pay the tax on it, and file the income tax return.
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According to current income tax rules, those below the age of 60 years with annual income of more than Rs 2.5 lakh are liable to pay taxes. For people aged 60 and above but below 80 years, the basic exemption limit is Rs 3 lakh. Taxpayers older than 80 years are required to pay income tax if their income exceeds Rs 5 lakh.
The income tax you are liable to pay depends on your earnings in a financial year and the income tax slab applicable to it. The income tax slabs can be different for different types of taxpayers, which include individuals, HUF (Hindu undivided family), Association of Persons (AOP), Body of Individuals (BOI), Foreign Company, Domestic Company, Firms, LLP, and Co-operative Society.
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How to calculate income tax?
You can easily calculate your income tax liability using the tax calculator of the Income Tax Department. Many other online tools are also available to calculate your income tax liability. However, it’s important to note that the online tools only give an estimate of your tax liability based on the information provided. The actual tax liability could be different from the estimated amount and if needed you should take advice from a Chartered Accountant or tax expert.
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Step – 1: Open the e-Filing portal of the Income Tax Department.
Step – 2: Click on quick links and then select Income and Tax Calculator.
Step – 3: The Basic Calculator will be displayed on your screen.
Step – 4: Enter the assessment year, taxpayer category, your age, and residential status.
Step – 5: Also enter your total annual income and total deductions in the given boxes.
Step – 6: Your tax summary will be displayed on the left side of the page. You will be able to see the payable tax both as per the old and new tax regime. You can also click on ‘View Comparison’ to compare the income tax payable in both regimes in detail. The tool also tells you about how you are saving by choosing a particular tax regime.
