How to calculate the taxes by using the income tax calculator online

According to the Income tax act, every person who earns has to pay a particular amount of their income to the government as tax. The term person consists of the salaried individuals, firms, companies, businesses, freelancers, professionals, and other types of people. 

The tax is owned by different people based upon the tax brackets that fall under the government’s tax slabs. So, to calculate the tax, you should assess the various exemptions, earnings, deductions, and other factors. You can calculate the tax easily with the income tax calculator online. 

What do you mean by income tax calculator?

An income Tax calculator is an online calculating tool that helps you to compute the taxable income. It assists you in the arrival of the exact amount of income tax you are liable to pay. You only have to include income details, taxpayer category, exemptions, and deductions. The calculator will quickly compute the income tax that you are required to pay according to the information. 

A favorable way to use the income Tax calculator

An Income Tax is the best tax-saving plan that helps you to calculate the tax amount that you have to pay to the government according to your earnings. It is straightforward to use the income Tax calculator. Let us tell you the step-by-step way to use the Income tax calculator. 

• Choose the financial year that you can fill the income tax returns. You can select whether you want to calculate the tax under the new regime or the old regime. 
• Choose the taxpayer category, female, male, or senior citizen, with their residential status.
• Add the income details such as income from salary, income from the property, income from the capital gains, and income from the sources.
• Add the deductions that you are claiming from the health insurance premiums, life insurance premiums, 
• Submit the total taxable salary that is based upon the tax regime you select.
• Once you submit all the relevant details, click on the calculate option to see the computed income tax. 

A way to compute the income Tax

• The income tax on the taxable income depends upon the tax slabs that apply to the current financial year. 
• First, you have to add the income from all sources, consisting of the revenue gained from salary, income earned from the property, income gained from the long and short-term capital gains, etc. 
• After that, you have to calculate the total gross income and then subtract the deductions that you claimed from the life insurance and health insurance premiums.
• You can also subtract exemptions such as LTA, HRA, and the like based on your chosen tax regime. 
• After that, the TDS that you pay, and advance tax are considered while calculating the income Tax. 

Conclusion

This article gives you information related to the Income Tax calculator. This tool is used to compute the tax. Here you get the way to use the income tax calculator and calculation of the Income tax.