Income Tax Calculator

Income Tax Calculator - Calculate Your Taxes Instantly

One of the most important aspects of financial management is tax planning. Whether you are a salaried individual or a self-employed professional, knowing your tax liability beforehand can help you plan your finances more effectively.

An income tax calculator is a free online tool that simplifies the process of determining your tax liability by providing accurate tax estimates within seconds. By simply entering your income details, deductions and other tax-related information in the tool, you get highly accurate results that you can rely on for making informed decisions.

A tax liability calculator aids in planning your taxes efficiently by helping you choose the right tax regime and plan your investments smartly. With tax laws evolving each year, a tool that incorporates the latest tax slabs and changes is crucial for avoiding tax penalties and interest charges.

How to Use the Income Tax Calculator?

Samco Securities offers one of the most feature-rich and accurate tax calculators in India. The tool is very user-friendly and requires only a few inputs. It automatically processes your data and provides a tax estimate based on the applicable tax laws. Here is a step-by-step guide explaining how to use Samco’s income tax calculator.

• Step 1: Visit Samco’s income tax calculator webpage.
• Step 2: Under the ‘Basic Information’ tab, specify the assessment year and your age category.
• Step 3: Click ‘Next’ to proceed to the ‘Income’ section.
• Step 4: Enter your income details in the respective fields. For instance, if you have salary income, enter it in the text box beside ‘Gross Salary Income.’ Once you are done, click ‘Next’ to proceed to the ‘Deductions’ section.
• Step 5: Enter details of all of the deductions that you are eligible to claim in the respective fields and click ‘Next.’
• Step 6: If you are a salaried individual claiming a house rent allowance (HRA), then enter details such as your basic salary for the relevant financial year, the HRA received during the year and the total rent paid during the year. Also, remember to specify whether you reside in a metro city or not.
• Step 7: Once you have entered the HRA details, click ‘Calculate.’

The income tax liability calculator will instantly let you know your total tax liability according to the old tax regime and the new tax regime. The ability to estimate liability according to both regimes makes the tool one of the few new vs. old tax regime calculators in India.

Key Features of the Income Tax Calculator

The income tax calculator is a powerful tool with several key features that make it invaluable for taxpayers. Let us look at some of the key features of this useful tool.

• Calculates Tax for Salaried and Self-Employed Individuals:
  The income tax liability calculator is highly versatile and can be used by taxpayers irrespective of their employment status. For example, the income tax calculator supports deductions and income components unique to salaried individuals, like house rent allowance (HRA) and leave travel allowance (LTA).
  
  Similarly, the tool allows self-employed professionals to enter their business income and professional earnings to determine their tax liability. Such versatility helps you understand your tax obligations irrespective of whether you are self-employed or a salaried individual.
• Enables New and Old Tax Regime Comparisons:
  The liabilities under the new and old tax regimes vary quite significantly. For instance, the old tax regime allows you to claim various deductions to reduce your taxable income, whereas the new tax regime limits the number of deductions in favour of lower tax rates.
  
  Samco Securities has a new vs. old tax regime calculator that allows you to compare tax liabilities under the new and old tax regimes instantly. All you need to do is enter the details of your income and deductions. Once you are done, the tool will compute the tax amount under both regimes, enabling you to choose the option that is the most beneficial to you.
• Includes Section 80C, 80D, HRA and Other Deductions:
  If you are opting for the old tax regime, an income tax calculator can help you accurately assess your liability. This is because the tool considers all of the major tax-saving provisions provided by the Income Tax Act of 1961.
  
  Some of the deductions that a typical income tax liability calculator considers include the following:
  
  - House rent allowance (HRA)
  - Section 80C investments like life insurance premiums, PPF, ELSS, NPS and tax-saving FDs.
  - Health insurance premiums under section 80D health insurance premiums
  - Contribution to NPS under section 80CCD(1B)
  - Donations under section 80G
  - Interest on educational loans under section 80E
  - Interest on home loan under section 24b
  - Interest on savings bank accounts under sections 80TTA and 80TTB
  
  By including these exemptions, the calculator provides a realistic tax estimate, allowing you to plan investments and expenses effectively.
• Auto-Updated with the Latest Income Tax Slabs and Rules:
  The Income Tax Act of 1961 is dynamic and ever-changing. From income slabs to standard deduction, the act sees several changes almost every year during the Union Budget presentation.
  
  To keep pace with the various changes, the income tax calculator is regularly updated with the new rules as and when they are announced. This ensures that you receive the most accurate and up-to-date tax calculations based on the current financial year’s tax rules.
  
  Whether you opt for the new or old Regime, you can rely on an income tax liability calculator to provide precise estimates with no risk of miscalculations for effective tax planning.

Income Tax Slabs for FY 2024-25

The Indian income tax system follows a progressive tax structure. Here, you are taxed based on your annual income. The higher your annual income is, the higher the tax rate. To help you make informed decisions, here are the latest income tax slabs for FY 2024-25, along with their respective tax rates and a detailed comparison between the two regimes.

Section 87A of the Income Tax Act of 1961 provides tax rebates to individuals with an annual income of up to Rs. 7,00,000 under the new tax regime and up to Rs. 5,00,000 under the old tax regime. Individuals eligible for section 87A tax rebates need not pay any tax on their income.

Note: The income tax slabs and the respective tax rates are both subject to revision. For the latest tax slabs and guidelines, it is advisable to visit the official website of the Income Tax Department.

New vs. Old Tax Regime – Which One to Choose?

When filing your income tax returns, you can choose to assess yourself on the basis of either the old tax regime or the new tax regime. Both regimes have distinct tax structures, benefits and limitations. Knowing the differences between the two is essential before you calculate income tax online.

Old Income Tax Regime

The old income tax regime lets you claim multiple exemptions and deductions to reduce your tax liability. However, there is a trade-off. The income slabs are wider, and the tax rates are much higher in the old tax regime. Here is a quick overview of some exemptions and deductions available under this regime.

- Standard deduction
- Rebate under section 87A
- House rent allowance (HRA)
- Leave travel allowance (LTA)
- Entertainment allowance and professional tax
- Interest on home loan under section 24b
- Chapter VI A deductions (includes sections 80C, 80D, 80E, 80TTA, 80TTB, 80G, 80CCD, 80U and 80CCH)
- Family pension deduction
- Exemption on voluntary retirement under section 10(10C)
- Exemption on gratuity under section 10(10)
- Exemption on leave encashment under section 10(10AA)

New Income Tax Regime

The new income tax regime, meanwhile, has much lower tax rates compared to the old regime. However, only a few exemptions and deductions are available under this regime. Here is a quick overview of some exemptions and deductions available under this regime.

- Standard deduction
- Rebate under section 87A
- Entertainment allowance and professional tax
- Interest on home loan under section 24b (only for let-out properties)
- NPS contributions by the employer under section 80CCD(2)
- Agniveer Corpus Fund contributions under section 80CCH
- Exemption on voluntary retirement under section 10(10C)
- Exemption on gratuity under section 10(10)
- Exemption on leave encashment under section 10(10AA)

Which Regime To Choose?

If you have multiple tax-saving investments eligible for section 80C deductions or are eligible to claim multiple exemptions and deductions, opting for the old tax regime could be more beneficial.

On the other hand, if you have minimal tax-saving investments or deductions, opting for the new tax regime lets you enjoy lower tax rates.

If you wish to know your liability under both regimes, using a new vs. old tax regime calculator such as the one from Samco Securities can help. Based on your inputs, the tool can quickly give you an accurate estimate of your tax liability under the old and the new regimes, allowing you to decide which of the two is more beneficial.

Now, it is important to remember that tax laws can be complex and confusing. Therefore, if you require personalised guidance on tax planning, it is advisable to consult a tax expert.

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