An Income Tax Calculator is a useful online tool that helps you determine your tax liability based on your income after the Union Budget for the year is announced. Individuals whose income falls within the taxable income bracket are required to pay a portion of their annual earnings as tax. This tax can be paid through Tax Deducted at Source (TDS) from your monthly salary or through the Income Tax Returns portal managed by the Central Board of Direct Taxes (CBDT). The provision for online tax payments ensures that individuals settle their dues on earnings from various sources.

The Income Tax Calculator on this page is updated according to the changes announced in the Union Budget for FY 2023-24 and AY 2024-25.

To use the tax calculator, follow these simple steps:

1. Choose the assessment year for which you want to calculate the tax. For FY 2023-24, the AY would be 2024-25, which you can select from the dropdown menu.
2. Select your age, as income tax rates in India vary based on age groups.
3. Enter your gross salary (the salary before any deductions). Also, provide details about additional income, such as rental income or annual interest on home loans for self-occupied or let-out properties.
4. Provide information about various deductions like those under Section 87A, 80C, 80CCD (1B), 80D, 80G, 80E, 80TTA, 80TTB, and 80GG. Include details about interest on educational loans and deposits in savings accounts.
5. Enter details related to HRA exemptions, including basic salary, DA, HRA, and the total rent paid annually.
6. Finally, indicate whether you live in a metro city and click the 'calculate' button to see your tax liability.

In India, income tax is based on a slab system, meaning the more you earn, the higher your tax rate will be. The income tax slabs are revised annually during the budget announcement. These slabs are also categorized based on the taxpayer’s profile. The three categories are:

• Individuals below 60 years of age, including residents and non-residents
• Resident senior citizens (ages 60 to 80 years)
• Resident super senior citizens (over 80 years of age)

Individuals can determine their total tax liability through an online income tax calculator. The tool considers the following factors to accurately reflect the tax payable by a resident or non-resident Indian at the end of a financial year:

• Annual income from salary or profits
• Income from other sources like investments, rental income, etc.
• Applicable tax exemptions
• House rent and transport allowances

By entering the correct details, the calculator will determine your total tax liability. Any taxes already paid via TDS will be subtracted from this amount. If you owe more tax, it can be paid online through the official Challan 280 portal. If you’ve overpaid, the government will reimburse the excess amount within 30 days after filing.

Remember, taxpayers who file their returns after the due date will incur interest under Section 234A and penalties under Section 234F. Therefore, it's crucial to know the due dates for filing income tax returns, which may vary depending on the taxpayer's category. For salaried individuals, the usual deadline is 31st July of the assessment year.

• Section 87A: Tax rebate of up to Rs. 12,500 for incomes below Rs. 5 lakh.

• Section 80C: Tax rebate of up to Rs. 1.5 lakh for investments in tax-saving instruments like fixed deposits, public provident funds, and more.

• Section 80CCD (1B): Tax exemption of up to Rs. 2 lakh for contributions to the National Pension System.

• Section 80D: Tax exemption of up to Rs. 25,000 on medical insurance premiums (Rs. 50,000 for senior citizens).

• Section 80G: Full exemption for donations made to charitable organizations.

• Section 80E: Full tax rebate on interest paid for education loans for up to 8 years.

• Section 80TTA/80TTB: Interest income from savings accounts is eligible for tax waivers up to Rs. 10,000. For senior citizens, all interest income up to Rs. 50,000 is exempt under Section 80TTB.

• Section 80GG: Tax exemption on house rent payments.

Considering these exemptions, individuals can use an online tax calculator, available on the official Sensex India website, to accurately compute their tax liability.