Have you ever heard about the Income Tax Calculator? The Income tax calculator is the easiest online tool helping people to calculate their taxes depending on their income after the Union Budget will be presented. Here, you can grasp every information about Income tax calculator and also how to estimate your Income Tax in 2020.
Use Income Tax Calculator for Your Financial Year 2019-20
Follow the listed steps to utilize a tax calculator:
- Select a financial year to calculate the taxes of that specific year.
- Choose your age properly because in India, Tax liability varies depending on the age groups as well.
- Click on the ‘Go to Next Step’
- Put your taxable salary that is salary after subtracting different exemptions like standard deduction, LTA, HRA, etc.
- You should put other details like rental income, interest income, interest paid on home loan for rented, and interest paid on loan for own property.
- Again, click on the ‘Go to Next Step’
- Put your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.
- Lastly, click on the ‘Calculate’ to know your tax liability and you can also compare your pre-budget as well as post-budget tax liability.
How to Calculate Income Tax?
You must include your income all the sources while calculating your Income Tax:
- Income from salary (salary paid by your employer)
- Income from house property (add any rental income and even interest paid on the home loan)
- Income from capital profits (income from sale purchase of house or shares)
- Income from your profession or business (income from freelancing/business/profession)
- Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)
So that you know how to calculate the tax on your own, go estimate out your taxes for the financial year 2019-20!!!