Easily calculate your tax obligations with an income tax calculator for accurate financial planning and maximise your savings.
An income tax calculator makes it easier to determine your tax liability. Manual calculations can be complex, especially with high amounts or incomes from multiple sources. As a law abiding citizen, it’s your responsibility to pay income tax. This is regardless of whether you are salaried or self-employed.
This tool helps you compute your taxes on your own without the help of an agent or accountant. It takes into account different factors such as deductions and exemptions offered under various sections of the Income Tax Act, 1961. The calculator also considers your total income and investments, among other factors. The final results show the estimated total outgo.
You can use Quicko’s income tax calculator through Bajaj Markets to ensure accuracy in your calculations. A detailed guide on how to use the calculator is given below:
Pick the financial year for which you would like to calculate your taxes
Choose your category by age, considering that tax liabilities differ according to your age
Pick the residential status
Provide details about your yearly income
Enter information regarding your investments, your insurance, loan details, deposits, deductions, etc.
- Proceed to view your tax details on your screen
Given below is a comparison between the new and the old tax regime to help you better understand how you can use an income tax calculator.
1. Tax Slab for Regular Citizens
Here are the taxation rates for citizens aged below 60 years according to both the old and the new tax regimes:
Old Tax Regime |
New Tax Regime u/s 115BAC |
||
Income Tax Slab |
Income Tax Rate |
Income Tax Slab |
Income Tax Rate |
Up to ₹2,50,000 |
Nil |
Up to ₹3,00,000 |
Nil |
₹2,50,001 - ₹5,00,000 |
5% above ₹2,50,000 |
₹3,00,001 - ₹6,00,000 |
5% above ₹3,00,000 |
₹5,00,001 - ₹10,00,000 |
₹12,500 + 20% above ₹5,00,000 |
₹6,00,001 - ₹9,00,000 |
₹15,000 + 10% above ₹6,00,000 |
Above ₹10,00,000 |
₹1,12,500 + 30% above ₹10,00,000 |
₹9,00,001 - ₹12,00,000 |
₹45,000 + 15% above ₹9,00,000 |
|
|
₹12,00,001 - ₹15,00,000 |
₹90,000 + 20% above ₹12,00,000 |
|
|
Above ₹15,00,000 |
₹1,50,000 + 30% above ₹15,00,000 |
2. Tax Slab for Senior Citizens
The table given below provides the tax rates for citizens above the age of 60 but less than 80 years:
Old Tax Regime |
New Tax Regime u/s 115BAC |
||
Income Tax Slab |
Income Tax Rate |
Income Tax Slab |
Income Tax Rate |
Up to ₹3,00,000 |
Nil |
Up to ₹3,00,000 |
Nil |
₹3,00,001 - ₹5,00,000 |
5% above ₹3,00,000 |
₹3,00,001 - ₹6,00,000 |
5% above ₹3,00,000 |
₹5,00,001 - ₹10,00,000 |
₹10,000 + 20% above ₹5,00,000 |
₹6,00,001 - ₹ |
₹15,000 + 10% above ₹ |
Above ₹10,00,000 |
₹1,10,000 + 30% above ₹10,00,000 |
₹9,00,001 - ₹ |
₹45,000 + 15% above ₹ |
|
|
₹12,00,001 - ₹ |
₹90,000 + 20% above ₹ |
|
|
Above ₹15,00,000 |
₹1,50,000 + 30% above ₹ |
3. Tax Slab for Super Senior Citizens
A super senior citizen refers to the tax-paying group that lies above the age of 80 years. The table below includes the tax rates for super senior citizens:
Old Tax Regime |
New Tax Regime u/s 115BAC |
||
Income Tax Slab |
Income Tax Rate |
Income Tax Slab |
Income Tax Rate |
Up to ₹ 5,00,000 |
Nil |
Up to ₹3,00,000 |
Nil |
₹5,00,001 - ₹10,00,000 |
20% above ₹5,00,000 |
₹3,00,001 - ₹6,00,000 |
5% above ₹3,00,000 |
Above ₹10,00,000 |
₹1,00,000 + 30% above ₹10,00,000 |
₹6,00,001 - ₹9,00,000₹ |
₹15,000 + 10% above ₹6,00,000 |
|
|
₹9,00,001 - ₹12,00,000 |
₹45,000 + 15% above ₹9,00,000 |
|
|
₹12,00,001 - ₹15,00,000 |
₹90,000 + 20% above ₹12,00,000 |
|
|
Above ₹15,00,000 |
₹1,50,000 + 30% above ₹15,00,000 |
Benefits of Using the Income Tax Calculator
The income tax calculator comes with various benefits that can make tax paying easy for you.
Accuracy
The calculator is fully automated, which means it provides error-free results and it draws values that are close to accuracy.
Instant Results
Using this tool helps you get the results instantly, which is a useful alternative to manual calculations.
Convenience
Since the income tax calculator is an online tool, you can use it whenever and wherever you wish at your convenience.
Assessment
You can easily carry out assessments with the automatic computations provided to you by the income tax calculator.
Knowing the tax-paying categories in India is essential to understand whether you need to pay income tax.
Salaried Individuals
Salaried individuals are those who work for other employers such as companies, offices, etc. The net salary is factored into the gross salary amount, Employee Provident Fund, gratuity, various allowances, and more.
For salaried individuals, tax is deducted at the source. The tax amount is subtracted from the salary, along with other deductions, before the gross salary reaches the employee.
Individuals Receiving Income from Rentals
Various housing property owners choose to lease their property to tenants who pay the owners a monthly rent. This becomes an alternate income for the owners, and hence, rental income is liable to undergo tax deductions under the Income Tax Act.
Individuals Getting Professional/Business Gains
Whether you are an entrepreneur or a freelancer, the capital you earn is an income. Hence, it must bear the brunt of tax deductions. As per the Income Tax Act, money earned through a business or any professional source is considered an income. Therefore, its net amount is required to be subtracted by a certain tax percentage.
Individuals Getting Income from Other Sources
Apart from the ones mentioned above, various sources can bring you income. This could include a cash prize, a lottery, cash gifts, etc. In such cases, the tax is usually deducted at the source.
Frequently Asked Questions
Is TDS computed in the calculations of the income tax calculator?
No, TDS is not taken into account by the income tax calculator.
Is income tax computed on a gross salary?
No, income tax is computed on a net salary, which later derives your gross income after deductions and claims in a specific financial year.
Can an income tax calculator be used internationally?
Yes, an income tax calculator can be used internationally. It is an online tool that is globally accessible.
Is there a fee to use the income tax calculator?
Using an income tax calculator online requires zero payment. Additionally, you can use the calculator as many times as you want.
How is the new tax regime different?
The new tax regime is a simplified structure based on which you can pay lower taxes. However, you may have to forego certain exemptions and deductions.
Which tax regime is best suited for salaried individuals?
The choice between the two tax regimes depends on your financial situation and the tax-saving investments that you have. As a salaried employee with a lower income and limited investments, a new tax regime may be a preferred option.
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