How To Calculate Income Tax Calculator: By filing your tax return, you declare how much income you earned during that year, the deductions you claimed and the tax you paid. This is very simple, yet some taxpayers end getting messed up their tax returns – most of the times because of greed and sometimes because of ignorance of rules, or just lack of time. Some mistakes are not very serious
Some mistakes are not very serious and the taxpayer will get away with an additional tax demand. But some errors, such as not mentioning cash deposits after demonetisation or foreign assets and income, can land the taxpayer in serious trouble. Therefore it is very necessary to calculate how much tax you would have to pay this year.
Hence you can use this Income Tax calculator from the Income tax Department Of India officially.
Income Tax is the amount of money you pay as tax depending on the tax slab you fall under in accordance with your income. Here are some of the example that may help you to understand how much tax you have to pay.
Upto 2.5 lakhs- No tax
Rs.2.5 lakhs to 5lakhs- 5%
Rs.5 lakhs to 10 lakhs- 20%
Above Rs.10 lakhs – 30%
Note: you have to pay an additional 3% cell in addition to these.
How is Income Tax on Salary Calculated?
Well, it’s quite complicated but we have tried to make it simple for you. Your total salary is defined as the sum of your gross salary and income from other sources.
The Total Income Tax On Salary is calculated after all applicable deductions which are adjusted from the total income. And then the income tax is calculated according to the slab your taxable income falls under + 3% Cess.
For example: if your taxable income falls under the category of 5 lac to 10 lac, then the amount till 2.5 lacs will be exempted, from 2.5 lacs to 5 lacs will be taxed 5%. And the amount between 5 lac to 10 lac will be levied 20% tax + 3% Cess.
We suggest you to use the income tax calculator provided by the Income Tax Department Of India whose link is provided above.