Budget 2018: Income Tax Calculator

Financial planning is important for every firm and businessman. It is important to calculate taxes and pay them at the end of the financial year. You can save some money by planning properly and saving up on taxes. Saving on taxes is a method to save up some money for the financial year. This also requires having an effective business plan.

The income tax is under looked by the IT department and it is a government agency that monitors the income tax collection. The department was founded in 1922 to manage the tax and cash flow in the country.

To calculate these taxes, there are Income Tax Calculator Online that are also available online these days. This is the most helpful and easiest way to calculate the income taxes that are liable. This tool helps in calculating the taxes for the financial year. One can calculate the income tax returns with the help of this Income Tax Calculator that is available online. There are various financial institutions and aggregators that help in providing the Income Tax Calculator online. These calculators are available for free on the internet. These calculators take every income into account and require some information to be filled before calculating the taxes.

Online Income Tax Calculators:

Planning tax is a methodology that helps in arranging all the financial affairs in such a way that it can save some taxes legally and help the firm. These strategies help in tax planning can help you save money, invest them or spend the same. The online Income Tax Calculator enables the advantages for exemptions, deductions, reliefs, rebates and other reductions on tax liability. These deductions are encouraged by the government for investment and mobilization for the funds that would benefit the society and also the economy at large. These benefits can be included under the Income Tax Calculator. The objectives included under this are;

1. Claiming deductions under Section 80C and Section 80U.
2. Reducing the liable tax for low paying amount of tax.
3. Using the legal methods in reducing the tax liability that will not evade tax.
4. In investing under instruments that are capable in yielding all the good returns that are also eligible from exemption and deductions.

This will help in calculating your taxable income, compute it and be liable to pay taxes.

How do you calculate income tax?

Every business requires you to calculate income tax at the end of the financial year. By calculating this income tax one can also help in saving up some money officially. The income is calculated form all the income gained, salary paid, interest income and other capital gains of the firm for that financial year.

Gross Income is separated into 5 categories according to the Income tax Act, 1961. These are enumerated here below;

1. Income from property house,
2. Income from salary,
3. Income from profession and business,
4. Income from gains of capital, and
5. Income from other places.

There is a 4 percent cess is added for the financial year 2018 – 2019 in the payable tax. Till the year 2017 – 2018 the cess percent was 3. With this, there is an additional surcharge for business and firms with annual income more than Rs 50 lakh. The surcharge is at the rate of 10 percent with income above Rs 50 lakh and under Rs 1 crore. For more than Rs 1 crore, the surcharge is applicable as of 15percent. Section 87 A helps in earning between Rs 2.5 lakh to 3.5 lakh for the financial year.

This salary is divided with various components with basic and special allowance with other components. In these, some are fully taxable and some is also fully exempted with tax submission and actual bills.

Income Tax Calculator:

These tools are specially designed for enabling the taxing benefits and knowing the income generated for the particular financial year. These Tax Calculators help in calculating the annual income with tax applicable and the deductions for the eligibility everything under the Section 80 C and Section 80 D. they also provide with options that suit under financial portfolio, other benefits and tax saving liability.

Details to be entered under Income Tax Calculator are as follows;

1. Name: it is required to give your name as per the registered and financial records by the government.
2. E-mail address: here you enter the required e-mail address for the Income Tax Calculator. It is important to enter the proper mail address so that you keep getting the updates and receive the reports on your mail timely.
3. Mobile number: this is given for record keeping purpose for the Income Tax Calculator.
4. Date of Birth: this is again for the record keeping purpose for the Income Tax Calculator. They can also ask you to submit the documentary proofs for the support during buying the policy on the basis of calculation. Make sure that the date of birth you give are as per the government records.
5. Gender: government of India has different tax slabs for men and women. This will help you understand the tax slab.
6. City: there are different rent home rent allowances for metro cities and non-metro cities. This will again help in saving some of the taxes. You can select that on the dropdown menu.

Now that you know the details required to be filled in Income Tax Calculator you can calculate your taxes online.

How much Income Tax do you need to pay?

Here is how much you need to pay depending upon the tax slab that is applicable for the income you earn. These taxes are calculated on the basis of the tax slabs.

For tax payers under 60 years of age as of the financial year 2018 – 2019 and financial year 2017 – 2018;

Income Slab                      Rate of Tax

Till Rs.2,50,000                 No Tax

INR 2,50,000 – INR 5,00,000       5%

INR 5,00,000 – INR 10,00,000      20%

INR 10,00,000 and beyond          30%

Tax payers rates for under 60 years of age in financial year 2016 -2017, financial year 2015 – 2016 and financial year 2014 – 2015 are;

Income Slab                      Rate of Tax

Till INR 2,00,000               No Tax

INR 2,00,000 – INR 5,00,000        10%

INR 5,00,000 – INR 10,00,000      20%

INR 10,00,000 and beyond 30%

For tax payers under 60 years of age in financial year 2013 -2014 are;

Income Slab                      Rate of Tax

Till INR 2,00,000               No Tax

INR 2,00,000 – INR 5,00,000        10%

INR 5,00,000 – INR 10,00,000      20%

INR 10,00,000 and beyond 30%

These are the taxes to be paid under the income slab and the tax rates.

Division under Tax payment:

Division under tax payments are as follows;

1. Assessment of the year
2. Salary for the year
3. House property
4. Employment contribution under Provident Funds
5. Contribution to Public Provident Funds
6. LIC premiums paid
7. Tuition fees or education fees paid
8. ELSS: Equity Linked Savings Scheme
9. Taxable income and total income
10. Standard of deduction
11. Premium on medical insurance
12. Income from salary
13. Income from property house
14. Incomes from capital gains
15. Income from other sources
16. Deductions under Chapter V1A
17. Section 80C
18. Section 80CCD
19. Section D
20. Medical Insurance Premium and preventive health check Paid for assesse, spouse and children
21. Medical Insurance Premium and preventive health check Paid for Parents

These taxes are collected and payable under the following listed divisions. One can save some of their taxes from using the listed options there are a lot of exemptions mentioned under these sections. It is important to show the correct expenditures. Income tax can be saved also under Section 80C, Section 80CCd and under Section 80D.

Outputs given by the Income Tax Calculator:

After you enter all the details, the online income tax calculator gives you the output as;

1. Summary:

This depicts the Income Tax Calculated and the level of your income, with the level of your investment and also your tax liable in a form of bar graph. It provides with an estimate of amount of tax savings with possible investment available. It also simplifies the entire list and provides with options that are suitable for the financial portfolio under a tabular format. This is again represented as an instrument of investment, tax saving ability of that option, benefits of that instrument, and recommended product fitting into that instrument category.

2. Tax splitting:

The tax splitting under Income Tax Calculator helps to show the tax slab where the income falls. The applicable amount of tax that is payable. It calculates the total payable tax and splits it as ‘Tax on Total Income’ and ‘Education Cess’Top of Form

Bottom of Form

Conclusion:

In the field of Income Tax Calculator there has to be a mentioned minimum with the given three amounts. This is any how the tool that allows the maximum for Rs 1 lakh that can be entered and paid in this field with all the additional proofs and documentary evidence that are required beyond the limit. And these Online Income Tax Calculator will always help you to know your taxes payable for the particular financial year.