Income Tax Calculator 2023 | Calculate your Tax In Few Steps

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Income Tax Calculator Income tax is a type of tax that the central government charges on the income earned during a financial year by the individuals and businesses. Taxes are sources of revenue for the government. Government utilizes this revenue for developing infrastructure, providing healthcare, education, subsidy to the farmer/agriculture sector and in other government welfare schemes. Taxes are mainly of two types, direct taxes and indirect form of taxes. Tax levied directly on the income earned is called as direct tax, for example Income tax is a direct tax. The tax calculation is based on the income slab rates applicable during that financial year.

Also Read : CARS24 – Now Buy Cars Completely Online

Income tax is a tax charged on the annual income earned by an individual. The amount of tax paid will depend on how much money you earn as income over a financial year. One can proceed with Income tax payment, TDS/TCS payment, and Non-TDS/TCS payments online. All taxpayers must fill in the relevant details to make these payments. The entire process becomes simple and quick.

Income Tax Calculator 

Income tax for FY 2020-21 applies to all residents whose annual income exceeds Rs.2.5 lakh p.a. The highest amount of tax an individual could pay is 30% of their income plus cess at 4% if their income is more than Rs.10 lakh p.a.

It is mandatory to file ITR for individuals If the gross total income is over Rs.2,50,000 in a financial year. This limit exceeds Rs.3,00,000 for senior citizens and Rs.5,00,000 for super senior citizens. The entities listed below are required to pay tax and file their income tax returns.

Each of these taxpayers is taxed differently under the Indian income tax laws. While firms and Indian companies have a fixed rate of tax calculated on their tax profits, the individual,HUF, AOP and BOI taxpayers are taxed based on the income slab they fall under. People’s incomes are grouped into blocks called tax brackets or tax slabs. And each tax slab has a different tax rate.Rate at which income is charged to tax increases with increase in income. Budget 2020 introduced a ‘New tax regime’ for the Individuals and HUF taxpayers.

Income Tax Calculator Slab 2021-22

Income Tax Slab Tax Rate
Up to Rs.2,50,000 Nil
From Rs.2,50,001 to Rs.5,00,000 5%
From Rs.5,00,001 to Rs.7,50,000 10%
From Rs.7,50,001 to Rs.10,00,000 15%
From Rs.10,00,001 to Rs.12,50,000 20%
From Rs.12,50,001 to Rs.15,00,000 25%
Income above Rs.15,00,001 30%

The income earned individuals will determine the income tax slabs under which they fall. The lower the income, the lower the tax liability, and those who earn less than Rs.2.5 lakh p.a. are exempt from tax.

New Income Tax Slabs FY23-24

In India, income tax is calculated using income tax slabs and rates for the applicable financial year (FY) and assessment year (AY). The income tax slab for AY 2024-25 was published as part of the Union Budget 2023-24 on February 1, 2023.

Income Tax Slab

Individual taxpayers must pay income tax based on the slab system into which they fall. Individuals may fall into a different tax bracket depending on their Income. As a result, persons with higher incomes will have to pay more taxes. The slab system was implemented to keep the country’s tax system equitable. The slabs change with each budget announcement.

New Income Tax Slab for FY 2023-24 (AY 2024-25)

Last updated – 1st Feb, 2023

The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-

Tax Slab Rates
Rs. 0 to 3 Lakhs NIL
Rs. 3 Lakhs -6 Lakhs 5.00%
Rs. 6 Lakhs – 9 Lakhs 10.00%
Rs. 9 Lakhs – 12 Lakhs 15.00%
Rs.12 Lakhs – 15 Lakhs 20.00%
Rs. 15 lakhs and more 30.00%

Income Tax Slab for People Between 60 to 80 Years

Tax Slabs

Rates

Rs. 3 lakhs

NIL

Rs. 3 lakhs – Rs. 5 lakhs

5.00%

Rs. 5 lakhs – Rs. 10 lakhs

20.00%

Rs. 10 lakhs and more

30.00%

(ફાઈલ કમ્પ્યુટરમાં ઓપન કરવી)

Download Income Tax 2022-23 Automatic Excel File : Click Here

Income Tax Calculator 

Income Tax Calculator 

Here is the income tax slab 2021-22 for individuals who are less than 60 years old:

Income Tax Slab Tax Rate
Up to Rs.2,50,000 Nil
From Rs.2,50,001 to Rs.5,00,000 5% of the amount exceeding Rs.2.5 lakh
From Rs.5,00,001 to Rs.10,00,000 Rs.12,500 + 20% of the amount exceeding Rs.5 lakh
More than Rs.10,00,000 Rs.1,12,500 + 30% of the amount exceeding Rs.10 lakh

One must bear in mind that not all income can be taxed on slab basis. Capital gains income is an exception to this rule. Capital gains are taxed depending on the asset you own and how long you’ve had it. The holding period would determine if an asset is long term or short term. The holding period to determine nature of asset also differs for different assets. A quick glance of holding periods, nature of asset and the rate of tax for each of them is given below.

Income Tax Calculator

Type of capital asset Holding period Tax rate
House Property Holding more than 24 months – Long Term Holding less than 24 months – Short Term 20% Depends on slab rate
Debt mutual funds Holding more than 36 months – Long Term Holding less than 36 months – Short Term 20% Depends on slab rate
Equity mutual funds Holding more than 12 months – Long Term Holding less than 12 months – Short Term Exempt (until 31 March 2018) Gains > Rs 1 lakh taxable @ 10% 15%
Shares (STT paid) Holding more than 12 months – Long Term Holding less than 12 months – Short Term Exempt (until 31 March 2018)Gains > Rs 1 lakh taxable @ 10% 15%
Shares (STT unpaid) Holding more than 12 months – Long Term Holding less than 12 months – Short Term 20% As per Slab Rates
FMPs Holding more than 36 months – Long Term Holding less than 36 months – Short Term 20% Depends on Slab rate

Income tax calculation can be done either manually or by using an online income tax calculator. The amount of tax that must be paid will depend on the tax slab under which you fall. For salaried employees, income from salary includes the basic pay, House Rent Allowance (HRA), Transport Allowance, Special Allowance and any other allowances. However, certain components of your salary are tax-exempt, like Leave Travel Allowance (LTA), reimbursement of telephone bills, etc. In case HRA is part of your salary and you reside in a rented house, you are eligible to claim exemption. Apart from these exemptions, there is a standard deduction of up to Rs.50,000.

Income Tax Calculator 

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