Skip to main content

How to Use Portal’s Income Tax Calculator for Calculation?

Image
By Arpit Kulshrestha
How to Use Income Tax Calculator on New 2.0 Portal?

Have you ever filed tax returns on your own? If yes, you know that, it’s a very tedious, long, and complicated task. To make it more complicated than ever, there is a new regime of taxes announced by the government. And choosing the regime that is more beneficial for you, new or old is a mind cruising task. Because you have to consider a number of factors for that. So for making the tax filing process somewhat easy for taxpayers, the IT department has introduced its new tax calculator.

Now the question arises of how this new calculator benefits me to choose the right regime for my taxes. Well, it gives you the liberty to calculate your taxes in both regimes to compare and then decide the most beneficial regime for filing taxes. All you need to do is fill in the information required, such as your salary and deductions.

With the previous tax system, you can claim a number of exemptions and deductions when determining your tax burden. On the other hand, the new system, as outlined in the Union Budget 2020–21, provides discounted prices. If you choose the New Tax regime, you will have to give up some exemptions and deductions that are currently available under the Old Tax regime.

Why Should You Use A Dept’s Income Tax Calculator?

There are plenty of reasons you should use a tax calculator. For instance when you calculate your taxes through a tax calculator. You know your tax liabilities and that gives you mental clarity about managing your finances. Also, it's important to note, If a taxpayer chooses the new tax system and their income is below the Rs 7 lakh category, they would receive a rebate.

According to the Budget 2023 announcement, this would also include the standard deduction of Rs. 50,000 which was a component of the previous tax system. In addition, the basic exemption threshold was increased from the previous tax regime's ceiling of Rs 2.5 lakh to Rs 3 lakh.

So good news for taxpayers under 7 lacks annual income. If they choose to file their taxes according to the new income tax regime they can save extra 33,800 rs. And those who have an annual income of more than 7 lakhs but up to 10 lakhs. They will have the opportunity to save 23,400 rs. And people with up to 15 lakhs annual income can save a whooping amount of 49,400 rs.

Steps to Use Tax Calculator

The tax department's official website has a calculator for calculating income taxes. You will be required to enter the information below in order to use it.
  • Choose the type of taxpayer
  • Select your gender and whether you fall under the senior or super senior citizen category.
  • Now input your residential status.
  • Declare your income other than salary and special rate income.
  • Amount of interest you are paying on a self-occupied property. you are eligible to claim this dedication under both regimes.
  • If you are earning any income from self-occupied house property
  • And finally Gross Total Income, Less Eligible Income, and Total Income
Before jumping on the income tax calculator to calculate your taxes it's also important to know there is a disclaimer from the income tax department. The disclaimer stated that taxpayers can use the calculator to get an idea about their tax liabilities on both tax regimes. However, the calculator does not provide you with an accurate calculation of taxes. It is suggested that a precise calculation can be calculated in accordance with the terms of the applicable Acts, Regulations, etc.

Comments

Post a Comment

Popular posts from this blog

Why Small Firms Should Consider Gen Payroll Software?

By Arpit Kulshrestha
Businesses in this competitive era would be required to manage the payroll. Payroll software has multiple operations such as paying employees, following tax laws, managing employee benefits, filing important documents, and keeping accurate records. Businesses that manage tasks manually or with spreadsheets can result in inappropriate compliance and issues, wasting time in doing operations. Gen Payroll software arrives to manage payroll with accuracy and resolve the issues that come therein. The merits and demerits of Gen Payroll software are mentioned below. Gen Payroll Software Gen Payroll is a payroll management software made by SAG Infotech . It eases and automates the process of payroll. The software’s features are tracking employee attendance, calculating salaries, ensuring compliance with laws like PF (Provident Fund), ESI (Employee State Insurance), and TDS (Tax Deducted at Source), as well as generating payslips. Businesses, whether small or large, can use this software. ...
2 comments
Read more

How ITR Software Assists Individuals in Filing Tax Returns

By Arpit Kulshrestha
Every assessee's process of income tax return (ITR) filing is significant, as it contributes to Indian's economy. The Income Tax Department has made efforts to facilitate this approach in recent years, but numerous people still see themselves steering a difficult financial system, multiple tax deductions, miscellaneous exemptions, and changing tax laws. This complexity can turn what must be an easy task into a significant challenge. In this context, income tax software evolves into an important partner, presenting a useful variety of accuracy, efficiency, and reassurance. The software enables return filing that permits taxpayers to handle their financial responsibilities when complying with the law. 1. Accurate Tax Calculations An incorrect income tax calculation of taxes could result in messages from the Income Tax Department or missed refunds. The tax software helps in finding taxable income and tax deductions that you may be allowed, like insurance or home loans. The co...
Post a Comment
Read more

A List of Top Chartered Accountant Software in India

By SAG InfoTech Pvt. Ltd.
Here, we introduce Genius as a helpful tax compliance software for chartered accountants in India. As we know, the taxation system is vast, with several taxes levied by the Indian government in the form of income tax, TDS, wealth tax, etc. So, instead of e-filing that many taxes, the need for software arises, which can e-file several taxes at once. SAG Infotech's developer team always gives new updates to the taxation industry. Genius Tax Software It is a complete package with facilities like Gen BAL, Gen IT, Gen CMA, Gen Form Manager, Gen e-TDS and AIR. Also, It provides maintenance aids of the database containing information of clients such as their address and telephone directory, partner’s details and signatory details. With Genius, one can also grow with your business.  Genius is an unlimited tax return filing software for clients in such a way that one can backup, restore data set passwords, etc. While the help option gives a solution for any of your problems. Another fa...
Post a Comment
Read more