Income Tax Calculator – Financial Year 2022-23

Article contains Automatic Income Tax Calculator in Excel Format for Financial Year 2022-23 (FY 22-23) i.e. Income Tax Assessment Year 2023-24. Income Tax Calculator is Useful for the salaried employees of government and private sector.

“Let everyone be subject to the governing authorities, for there is no authority except that which God has established. Give to everyone what you owe them: If you owe taxes, pay taxes; if revenue, then revenue; if respect, then respect; if honour, then honour.” Romans 13:1,6-7

Wish you a financially stress-free life and Prudent tax planning! Good Luck.

One of the frequently asked questions by salaried employees is: What are the factors should I consider while preparing a taxation & financial plan?

Financial planning linked with taxation is important for the salaried employees, where they invest their hard earned, limited sources to save tax as well to grow their wealth. When you are preparing a detailed taxation plan, you must keep a few simple points.

How much do Investment in Tax Saving Instruments?

Please review your existing commitments such as contribution to employee provident fund, school fee payments, premium paid towards life insurance policies, repayment of housing loan, etc., which are eligible for Sec 80C tax investments. No need to invest in tax saving eligible instruments if the total payments under the above list are above 1.5 lacs per annum, or you need to do investments in tax-saving options only to the extent the amount left after accounting for all the above-mentioned payments. So, to make it very simple and straightway– don’t over-invest for tax-saving purposes. The balance of your available funds can be invested towards a growth/wealth accumulating fund, beyond the tax-saving one, please give the following thoughts.

• Keep an emergency fund for meeting the unanticipated expenses.
• Create disciplined investment behaviour. An early start from the time you begin your career will help to have a very good fund accumulation at your retirement age. Eg. Rs.5000/- per month, started at the age of 30, an investment of 18 Lakh over the 30 years, at your age 60, will be a fund value of Rs.1.25 crore or more, with the current market situation.
• Never dig into the long-term investment for minor expenses.
• Keep a lean but diversified portfolio, with a few instruments which give more return with their past.
• Review the options to invest in National Pension Scheme (NPS) under section 80CCD, investments up to Rs.50,000/- are eligible for tax benefits. NPS contribution made through your employers is completely tax-free, up to 10% of your annual basic salary.
• Make sure you have a health insurance policy, though your employers provide some support in health insurance, that may not be sufficient to cover the entire treatment expenses, in case of an untoward occasions. The health insurance premium is eligible for tax savings under section 80D

Please refer to a detailed article on the above under – https://taxguru.in/income-tax/diversify-investments-consistent-longterm-growth-assets.html

Have a good tax planning ahead.

Salient features of Income-tax calculator for salaried employees- F.Y. 2022-2023.

• Useful for the salaried employees of government and private sector.
• Tax and rebate/deduction calculation for all types of income including agriculture income, to arrive at the annual tax liability.
• Marginal relief on the surcharge, where income crosses the prescribed limits.
• Automated HRA exemption/Sec 80GG deduction calculation based on the salary and rent payments. Validation on Chapter VI A deduction limits, Housing loan interest set off.
• Best tax regime suggestion for the taxpayers.
• Highlights of tax changes when the taxable income crosses 50 Lakh/1 Crore and so on.