Skip to main content

How tax calculator can help you calculate your taxable income?


Income Tax

Income Tax is a tax that is supposed to be paid by every business and every individual by law. These individuals or businesses are those that earn an income which is a significant amount on per annum basis with any services that they provide, savings account, products, pensions that they receive, businesses that they deal in, etc. in the country of India. The income taxes that people pay have to be shown on a income tax return sheet in order to process the returns and show how much taxes have been paid. This process should be done and dusted within the prescribed deadline. After that date, no filings for the taxes will be accepted for the purpose of tax returns. Even non - resident Indians (NRIs) have to pay taxes in the country as per law but it will only be for the income or salaries that they have generated or received with services they worked for in India and not in the country that they are a resident of. 

What are Income Tax Returns - ITRs?

The Income Tax returns are tax returns that are received by people who have paid extra taxes or those who are eligible for tax exemptions, tax benefits or tax deductions. This is the reason that everyone should file for income tax returns. But before you do that, make sure to calculate your income tax with the help of the income tax calculator.  In case the tax return sheet shows that there is an amount that has been paid in taxes by the tax – payer which is more than needed or there are certain tax exemptions, it will be refunded to them by the income tax department. The income tax paid by the individual has to be shown on a sheet and filed within a prescribed deadline. In case the income tax paid is unrequired, the extra amount will be refunded.

Taxable Incomes

    Income from salaries
Income from salaries is the income that is received as a salary by providing your services to an individual or a company or any institution. These are levied on salaries as well as pensions.
    Income which is generated from various financial sources
Income generated from various sources are the incomes received by investing or participating in various sources that are money savings bank, from fixed deposits, winning large amounts of money in legit game shows, etc. The income which an individual would receive from participating in any show or game or quiz is also taxable as per the Income Tax Act.

    Income generated from house property owned by the individual
Rent money - Income received through renting a property to another party.
Any income received or generated from house property which is owned by an individual is also taxable. If you are renting the property or the house out to another party, the money received from that would be taxed on. House property of a person will generate income in terms of the rent that they receive.
    Income received from capital gains
Income received from capital gains are the incomes that are generated or received from the sale of the capital assets owned by an individual. These capital assets can be house properties, mutual funds, shares, equities, etc.
    Income from professions, businesses or free - lance work which is self - practiced by the individual
The income from professions, businesses or free - lance work which is self - practiced by the individual is the self - generated income that an individual will receive through working as individual entity and not rendering their services in firms or companies. These are people who are chartered accountants rendering their financial services, as a contactor working on project basis, doctors practicing on their own, tuition teachers in coaching centers, as a freelancer working on project basis, self - practicing lawyers, self - employed individual, running businesses, etc.
How the tax calculator can help you calculate your taxable incomes?
The tax calculator will tell you to fill in all your incomes that you have received from various sources in a particular year and then it will calculate your income tax based on the income that you generated for yourself, your age as well as the amount of income you got.

Go to the Income Tax Departments website by the Government of India to get your income tax calculated easily:
 The following are all the details that the Tax Calculation form by the Income Tax Department will ask you in order to calculate your taxes, so make sure that you have all the details handy and fill them up properly:

      Assessment Year
      Tax Payer
      Male / Female / Senior Citizen
      Residential Status
      Income from Salary
      Income From House Property
      Capital Gains
      Income From Other Sources
      Profits and Gains of Business or Profession (enter profit only)
      Agricultural Income
      Deductions
      Net Taxable Income
      Income Liable to Tax at Normal Rate 
      Short Term Capital Gains (Covered u/s 111A) 15%
      Long Term Capital Gains (Charged to tax @ 20%) 20%
      Long Term Capital Gains (Charged to tax @ 10%) 10%
      Winnings from Lottery, Crossword Puzzles, etc) 30%
      Income Tax
      Surcharge
      Education Cess
      Secondary and higher education cess
      Total Tax Liability
      Due date of submission of return
      Actual date of submission of return/date of completion of assessment
      Relief
      TDS/TCS/MAT (AMT) Credit Utilized
      Detail of tax paid
      Amount of interest u/s 234A
      Amount of interest u/s 234B
      Amount of interest u/s 234C

The tax calculator will help calculate your taxable income as it includes all the parts of the incomes that have to be taxed.

Comments

Popular posts from this blog

Postal Life Insurance and Life Insurance Corporation of India: What’s the Difference?

When we talk about insurance policies by government, Life Insurance Corporation (LIC) is the first organization that comes to our mind. But not only LIC, Department of posts too offer life insurance under name of Postal Life Insurance (PLI). PLI was launched on February 1, 1884 and is the oldest insurance service provider. Only people working in government organization or associated with it can be a part of the scheme. On the other hand LIC policies are available to every Indian citizen, thus making it more popular among Indian population.
What is Postal Life Insurance?Postal Life insurance is an insurance policy that is applicable for all the government employees, be it an employee of military force, financial institution, Deemed University etc. Any person from private sector cannot choose this policy. The entry age is 19-55 years for all plans except the child plan. Maximum entry age under children policy is 45 years; and the child should be between 5-20 years. The sum assured should…

5 Best Investment Options for Retirees

Retirement is the age when your earing period comes to end, either willingly or by force. Not everyone opts to end their earning period, some prefer to work even after their retirement age or some resign their job even before. It is up to a person, as to what sort of retirement they want, but sure everyone looks for a safe and secure retirement without worrying about expenses and bills.
As a retiree, everyone wants to keep their retirement fund away from any tax liability and get a regular income. But to build a retirement portfolio with a blend of fixed income and market linked investment is a big task for retirees. It is always better to plan your retirement in advance and invest carefully in various plans to have a safe, secure and fixed monthly income.
Here are 5 best investment options for retirees, to have a better retired and no earning period in their life. These investment plans provide for regular monthly household expenses and build a retiree portfolio which is a perfect mix…

Promise a Secure Future to Your Child

Your child is the backbone of any civilization as they carry forward the name, tradition and history of human race forward. Every parent’s priority is to provide the best education to their child. This can be a challenge for many parents as the rate of inflation in education sector is growing with every passing day. Providing best education to your child has become a nightmare for most of the parents.
A child insurance policy is the solution that can promise a secure future to your child. These policies offer benefits towards your child’s education. These plans not only ensure that your child gets financial help to pursue higher education, but also provide benefits at various stages of their life like marriage, admissions etc. Insurance is like investment which offers more coverage and benefits than any other financial product.
Few Child Investment Plans1.SBI Life- Smart Scholar·It is a non-participating Unit Linked Insurance Plan (ULIP). If you are not around, this scheme offers dual p…