Interesting queries on the Income tax Calculator that you shouldn't miss
How to use the online Income Tax Calculator?
Here are the steps which make is useful for you to make calculation easy,
- Choose the year of assessment that you want to calculate.
- Please select your age, as it differs based on different age groups
- In the income field, provide gross salary details and fill in the annual income from different sources such as rental income, annual interest paid on home loans, and let-out property.
- Enter the deduction details based on different sections. Provide details of interest on an educational loan and deposit on the savings account.
- Provide the details of HRA exemption such as DA, HRA, basic salary, and rent paid per annum.
- In the last step, select the place where you live and click the calculate button to get an accurate result of tax liability.
What are the Income Tax Slabs?
The tax slabs are arranged based on the category and profile of the taxpayers. The slab system refers to different tax rates prescribed for different income ranges. The Indian Income-tax works under the slab system. Slab implies different tax rates charged for different income ranges. The income tax slabs are revised every year during the budget announcement. There are three different categories of the individual taxpayer:
Individuals below 60 years of age include residents and non-residents
Resident for senior citizens - 60 to 80 years of age
Resident for super senior citizens – more than 80 years
Are there any deductions for taxpayers?
Taxpayers itemize their deductions. They subtract certain eligible expenses and expenditures. Some possible deductions include student loan interest payments, contributions to an IRA, and health-insurance contributions for self-employed persons.
Some of the itemized deductions are:
- Deduction for state and local taxes – based on the SALT deduction, taxpayers deduct up to $10,000 of any state and local property taxes.
- Deduction for mortgage interest paid – on mortgages up to two homes with a limited $1 million debt. Homes purchased after December 15, 2017, have lowered about $750,000 of the mortgage.
- Deduction for charitable contributions
- Deduction for medical expenses that exceed 75% of AGI