Income Tax Calculator

Income Tax Calculator Guide

What is an Income Tax Calculator?

An Income Tax Calculator is an online tool that helps estimate the amount of income tax an individual or entity is liable to pay based on their taxable income, deductions, exemptions, and other factors.

How Does an Income Tax Calculator Work? 

The best online tax calculator works by calculating the taxable income after considering various components:

Income Sources: Salary, interest, rental income, capital gains, etc. 

Deductions: Section 80C, 80D, 80E, etc. 

Exemptions: HRA, LTA, etc. 

Age Factor: Different tax slabs for individuals below 60, between 60–80, and above 80. Surcharge and Cess: Additional tax depending on income bracket.

Income Tax Calculation Formula 

The taxable income is calculated using the formula: 

Taxable Income = (Total Income) – (Exemptions + Deductions) T

ax Payable is then calculated based on the applicable tax slab: Tax Payable = Taxable Income × Applicable Tax Rate + Cess and Surcharge (if any)

How to Use Insights.Market Free Online Tax Calculator?

• Enter your annual income details (salary, HRA, rental income, etc.).
• Add eligible deductions (under Section 80C, 80D, 80E, etc.).
• Choose the age category (below 60, 60 to 80, 80 and above).
• The free online income tax calculator will estimate your taxable income and tax payable.

How Can an Income Tax Calculator Help You? 

Using a free online tax calculator helps in:

• Estimating tax liability quickly and accurately.
• Planning tax-saving investments.
• Comparing tax liability under old and new tax regimes.
• Avoiding penalties due to underpayment of taxes.

Old vs New Tax Regime

Tax Slabs for FY 2024-25 (New Regime)

• ₹0 – ₹3,00,000 → No Tax
• ₹3,00,001 – ₹6,00,000 → 5%
• ₹6,00,001 – ₹9,00,000 → 10%
• ₹9,00,001 – ₹12,00,000 → 15%
• ₹12,00,001 – ₹15,00,000 → 20%
• Above ₹15,00,000 → 30%

Income Tax Calculator FAQs

• What is the best online tax calculator?
  The best online tax calculator provides quick and accurate tax estimates based on the latest tax slabs.
• Is an income tax calculator free to use?
  Yes, most income tax calculators, including the free online tax calculator, are free to use.
• Can I calculate tax under both old and new regimes?
  Yes, the income tax calculator shows tax liability under both regimes for comparison.
• Does the tax calculator include surcharge and cess?
  Yes, the calculator includes surcharge and cess based on income slabs.