The government of India has extended the last date for ITR filing to September 30th, however, especially because of the new reforms introduced by the Union Budget earlier this year, it is not advised to wait until closer to the day. Filing returns could seem like a daunting and annoying task to begin with but an income tax calculator can make the job so easy to do!
In this article below we shall discuss what is an income tax calculator and how an income tax calculator can help you while filing your Income Tax returns.
An income-tax calculator can be defined as an online tool that aids in the calculation of taxes depending on a person’s income from salary. Individuals who fall into the taxable income category must pay tax on a part of their net annual income in each financial year. The calculator not only makes the task easy but is also simple-to-use and up to date with the most recent income tax salary rates and laws.
Income tax is levied on all of your earnings over the course of a financial year. Income earned in the form of a salary, as well as income from other sources, are included in your tax calculation. The calculation of exemptions and deductions is another aspect of income calculation.
Income Tax calculation may be difficult for most people and so, calculating income tax online with the help of an appropriate online tool would be the best thing to do. But how does it help? Mentioned below is how an Income Tax calculator can help you.
In its Union Budget of 2021, the Ministry of Finance introduced a new tax regime in addition to the existing one. It is the taxpayers’ choice to decide which tax system they will adhere to. The income tax calculator will assist people in determining which tax system is most appropriate for them.
An income tax calculator is an online tool that utilizes simple and crucial information to assist you in calculating taxes online. You can enter information about your income from rent payments, premium payments, education expenditures, any interest paid on student loans, on the online income tax calculator. Thus, you can calculate and pay your income tax online by entering some basic information on the income tax calculator.
Calculating and paying income tax may be stressful and time-consuming. It has only gotten more difficult with the implementation of the new tax system. An income tax calculator will help taxpayers calculate taxes under both systems and determine which is preferable for them. As a result, it saves a significant amount of time and energy.
Most online income tax calculators are simple to use and completely free, making the job quick, easy and stress-free.
To calculate income tax for the fiscal year 2020-21 (AY 2021-22), you’ll need to keep certain information in mind.
When you choose the new tax regime, you should be aware that numerous deductions and exemptions that a person or HUF can claim will no longer be available in the new tax computation. These are some of the exemptions that you will no longer be eligible to if you opt to calculate total income under the newly introduced section 115 BAC of the Income Tax Act:
Taxpayers have the option of choosing between the two regimes this year. The major objective of the new tax regime is to make personal tax calculations and payments as simple as possible. After you’ve calculated your income, use an online income tax calculator to determine and file income tax returns. This will assist you in determining which tax regime will provide you with the most benefits.
1. Should everyone file income tax returns?
No, you are not obliged to submit income tax returns if your income is below the basic exemption amount. Those with an income of less than Rs 2.5 lakh who wish to seek an income tax refund can do so by submitting an ITR. However, if your income exceeds the basic exemption level, you must file income tax returns.
2. When is the last date to file income tax returns?
The Central Board of Direct Taxes (CBDT) has extended the deadline for filing ITR for FY 2020-21, that is, to provide relief to all taxpayers (AY 2021-22). The last date to file your income tax is 30th September 2021. The decision was made, due to the impact of the second wave of the pandemic.
3. How is Income Tax deducted from my salary?
The amount of Income Tax deducted from your wage is determined by your tax bracket and whether you choose the old or new tax system. After deducting any relevant deductions, the taxable income will be calculated.