Summary
Total Investment
0
Taxable Income
0
Tax Payable
0
Age: Below 60 Years
Annual Income: 100000

Investmentsu/s 80C of income tax act 1961

The investments u/s 80C/80CCC that qualify for income tax deduction are:

• Term Insurance Policies

• Unit Linked Insurance Plans

• Traditional Savings/Endowment Insurance Policies

• Retirement Insurance Plans

• 5-year Fixed Deposits

• Public Provident Fund

• Equity Linked Savings Scheme

Additional amount you can save under 80C: ₹ 70,000Click to save more

NPS Investmentu/s 80CCD(1B) of Income Tax Act 1961

If you have invested in NPS, you can get additional deduction upto 50,000 u/s 80CCD(1B) which will be over and above deduction of 1,50,000 u/s 80C.

Additional amount you can save under 80CCD: ₹ 70,000Click to save more

Health Insurance Premiumu/s 80D of Income Tax Act 1961

The premiums paid towards health insurance policies taken for self, spouse, children or parents is eligible for tax deduction u/s 80D of Income Tax Act 1961:

• The maximum limit for deduction for health insurance policy premium taken for self, spouse or children is 25,000 (The maximum limit is increased to 50,000 if the age of the person insured is above 60 years. So, if person buys medical insurance for, self and parents who are senior citizen he/she will be allowed deduction up to 75,000 (Self 25,000 + Parents 50,000).

• Additional deduction up to 25,000 is allowed on health insurance premium paid towards covering parents (The maximum limit is increased to 50,000 if the age of the person insured is above 60 years. If person who is senior citizen buys medical insurance for self and parents who are senior citizen he/she will be allowed deduction up to 1,00,000 (Self 50,000 + Parents 50,000).

Additional amount you can save under 80D: ₹ 70,000Click to save more

House Rent Paid - HRA deduction u/s 10(13A) of Income Tax Act 1961

HRA deduction is applicable minimum of the following:

• If you live in a rented flat, you can claim tax deduction on the rent you pay

• An amount equal to 50% of the basic salary (for accommodation in Mumbai, Kolkata, Delhi, or Chennai) and 40% of basic salary (for accommodation elsewhere) OR

• The amount by which rent incurred by the assesses exceeds 10% of the basic salary OR

• The actual amount of HRA received by the assesses in respect of the relevant period

Additional amount you can save under 10(13A): ₹ 70,000Click to save more

Interest on Home Loanu/s 24 of Income Tax Act 1961

• Maximum deduction 2,00,000

• Interest paid on home loan is eligible for tax deduction

.
Additional amount you can save under 24: ₹ 70,000Click to save more

Interest on Education Loanu/s 80E of Income Tax Act 1961

• Maximum period 8 years

• Interest paid on education loan is eligible for tax deduction

Additional amount you can save under 80E: ₹ 70,000Click to save more

Interest Received on Savings Accountu/s 80TTA of the Income Tax Act, 1961

Maximum deduction 10,000

This deduction is allowed on interest earned:

• From a savings account with a bank

• From a savings account with a co-operative society carrying on the business of banking

• From a savings account with a post office

This deduction is NOT allowed on interest earned on:

• Interest from fixed deposits

• Interest from recurring deposits

• Any other time deposits

Additional amount you can save under 80TTA: ₹ 70,000Click to save more

Interest on Senior Citizen Depositsu/s 80TTB of the Income Tax Act, 1961

Deduction in respect of interest on deposits in case of senior citizens:

• Banking Company

• Post Office

• Co-operative society engaged in carrying on the business of banking

Additional amount you can save under 80TTB: ₹ 70,000Click to save more

Calculate Taxes for Financial Year

Your Age

Gender

City Of Residence
  • Metro:
  • Mumbai
  • Chennai
  • Delhi
  • Kolkata
  • Hyderabad
  • Bangalore
  • Pune
  • Ahmedabad
  • Non-Metro:
  • Coimbatore
  • Vizag
  • Madurai Trichy
  • Mangalore
  • Mysore
  • Vijayawada
  • Nagpur
  • Jaipur
  • Surat

What is your Annual Income?

Input your annual salary and press enter
Summary
Total Investment
0
Taxable Income
0
Tax Payable
0
Age: Below 60 Years
Annual Income: 100000

Investmentsu/s 80C of income tax act 1961

Additional amount you can save under 80C: ₹ 70,000Click to save more

NPS Investmentu/s 80CCD(1B) of Income Tax Act 1961

Additional amount you can save under 80CCD: ₹ 70,000Click to save more

Health Insurance Premiumu/s 80D of Income Tax Act 1961

Additional amount you can save under 80D: ₹ 70,000Click to save more

House Rent Paid - HRA deduction u/s 10(13A) of Income Tax Act 1961

Additional amount you can save under 10(13A): ₹ 70,000Click to save more

Interest on Home Loanu/s 24 of Income Tax Act 1961

.
Additional amount you can save under 24: ₹ 70,000Click to save more

Interest on Education Loanu/s 80E of Income Tax Act 1961

Additional amount you can save under 80E: ₹ 70,000Click to save more

Interest Received on Savings Accountu/s 80TTA of the Income Tax Act, 1961

Additional amount you can save under 80TTA: ₹ 70,000Click to save more

Interest on Senior Citizen Depositsu/s 80TTB of the Income Tax Act, 1961

Additional amount you can save under 80TTB: ₹ 70,000Click to save more

An income tax is a tax levied by the government on income generated by businesses and individuals. Income taxes are a major source of revenue for the government. The amount obtained by the government through income tax is utilized to fund several programs such as social and national security, establishing schools, construction of roads, etc. If you are a salaried individual, your income tax is deducted at the source by the employers. On the other hand, self-employed individuals are required to pay income tax on their own based on self-assessment every financial year.

What is an Income Tax Calculator?

An income tax calculator, as the name suggests, is a tool that simplifies the tax calculation process. It can be used to determine your total tax liability on the income earned in a given financial year. You need to enter the relevant details in the taxable income calculator for it to compute the estimated tax payable.

Let us understand how to use the Income Tax Calculator for FY2021 on Finserv MARKETS in detail.

How to Use the Income Tax Calculator 2021?

Follow these steps to use the Income Tax Calculator:

  1. Select the financial year for which you intend to calculate tax.

  2. Choose your age, as it helps the calculator determine your tax slab.

  3. Select your gender and city of residence.

  4. Enter your annual income from all sources (salary, rent, agriculture, etc.).

  5. If you intend to file your tax as per the old income tax regime, enter the investments made under Section (u/S) 80C (max. ₹1.5 lakh) of the Income Tax Act, 1961.

  6. Enter your NPS investment (max. ₹50,000) under Section 80CCD(1B).

  7. Enter your health insurance premium under Section 80D.

  8. If you live in a rented house, enter your HRA amount as stated in the tax computation on your pay slip.

  9. If you have a home loan, enter the interest paid (max. ₹2 lakh) under Section 24. To understand whether you can claim both HRA and home loan interest deduction, refer to this article.

  10. If you have an educational loan, enter the interest paid under Section 80E.

  11. Enter the interest earned from savings accounts (max. ₹10,000) under Section 80TTA.

  12. If you are a senior citizen, enter the interest earned from senior citizen deposits (max. ₹50,000) under Section 80TTB.

  13. Click on the ‘Calculate Tax’ button to know your estimated tax liability.

What are Income Tax Slabs?

The Government of India levies income tax on individual taxpayers based on the income tax slab. In simple terms, different tax rates are associated with different income ranges. The tax rates will increase as the total annual income earned by a taxpayer increases. We have three categories of income taxpayers in India:

  • Individuals below 60 years

  • Senior citizens (people between the age of 60-80 years)

  • Super senior citizens (people above 80 years of age)

Income Tax Slabs and Rates for Individuals Below 60 Years

With the Union Budget 2020, the Finance Ministry of India released a new income tax structure that came into effect from April 1, 2020. However, this new income tax regime is optional and taxpayers have the liberty to either opt for it or continue using the old income tax structure at the start of each financial year (FY).

The following table gives a brief overview of the two income tax slabs for individual taxpayers below 60 years of age.

Annual Income

New Income Tax Regime

Old Income Tax Regime

Up to ₹2.5 lakh

Exempt / Nil

Exempt / Nil

Between ₹2.5 lakh and ₹5 lakh

5% (tax rebate u/S 87a applicable)

5% (tax rebate u/S 87a applicable)

Between ₹5 lakh and ₹7.5 lakh

10%

20%

Between ₹7.5 lakh and ₹10 lakh

15%

20%

Between ₹10 lakh and ₹12.5 lakh

20%

30%

Between ₹12.5 lakh and ₹15 lakh

25%

30%

Above ₹15 lakh

30%

30%

Income Tax Slabs and Rates for Senior Citizens

Taxpayers above the age of 60 but less than 80 years are considered as senior citizens as per the Income Tax Act. The following table gives an overview of the income tax slabs and rates (old and new) for senior citizens.

Annual Income for Senior Citizens

New Income Tax Regime

Old Income Tax Regime

Up to ₹2.5 lakh

Exempt / Nil

Exempt / Nil

Between ₹2.5 lakh and ₹3 lakh

5% (tax rebate u/s 87a applicable)

Exempt / Nil

Between ₹3 lakh and ₹5 lakh

5% (tax rebate u/s 87a applicable)

Between ₹5 lakh and ₹7.5 lakh

10%

20%

Between ₹7.5 lakh and ₹10 lakh

15%

20%

Between ₹10 lakh and ₹12.5 lakh

20%

30%

Between ₹12.5 lakh and ₹15 lakh

25%

30%

More than ₹15 lakh

30%

30%

Income Tax Slabs and Rates for Super Senior Citizens

Taxpayers above the age of 80 years are considered as super senior citizens as per the Income Tax Act. The following table gives an overview of the income tax slabs and rates (old and new) for super senior citizens.

Annual Income for Super Senior Citizens

New Income Tax Regime

Old Income Tax Regime

Up to ₹2.5 Lakhs

Exempt / Nil

Exempt / Nil

Between ₹2.5 Lakhs and ₹3 Lakhs

 

5% (tax rebate u/s 87a is available)

Exempt / Nil

Between ₹3 Lakhs and ₹5 Lakhs

Exempt / Nil

Between ₹5 Lakhs and ₹7.5 Lakhs

10%

20%

Between ₹7.5 Lakhs and ₹10 Lakhs

15%

20%

Between ₹10 Lakhs and ₹12.5 Lakhs

20%

30%

Between ₹12.5 Lakhs and ₹15 Lakhs

25%

30%

More than ₹15 Lakhs

30%

30%

Note: Taxpayers who choose the new income tax regime will not be able to benefit from the various tax deductions and exemptions offered under the different sections of the Income Tax Act. Check income tax deductions and exemptions to know about these in detail.

New Income Tax Regime vs. Old Income Tax Regime: Illustrations

Understanding how to calculate your income tax can be tedious. To make this simpler, we have drafted two scenarios that will help you understand the new and old income tax slabs and rates better.

Scenario 1: New Income Tax Regime is Better

Let us assume that Amit’s total annual income is ₹12 lakh. The following table outlines the tax calculation based on his salary and deductions as per the old and new income tax structure.

Particulars

Old regime

New regime

Difference

Gross total income

₹12,00,000

₹12,00,000

-

Less: Standard deduction

₹50,000

-

-

Less: Deductions u/S 80C

-

-

-

Less: Deductions u/S 80CCD

-

-

-

Taxable Income

11,50,000

12,00,000

-

     

 

Tax payable (as per slab rate)

   

 

Up to Rs. 2.5 Lakhs

-

-

-

Rs. 2.5 Lakhs to Rs. 5 Lakhs

₹12,500 (at 5%)

₹12,500 (at 5%)

-

Rs. 5 Lakhs to Rs. 7.5 Lakhs

₹50,000 (@ 20%)

₹25,000 (@ 10%)

-

Rs. 7.5 Lakhs to Rs. 10 Lakhs

₹50,000 (@ 20%)

₹37,500 (@ 15%)

-

Rs. 10 Lakhs to Rs. 12.5 Lakhs

₹45,000 (at 30%)

₹40,000 (@ 20%)

-

Rs. 12.5 Lakhs to Rs. 15 Lakhs

-

 

-

Tax Liability

1,57,500

1,15,000

-

Health & Education Cess (4%)

6,300

4,600

-

Total Tax Liability

1,63,800

1,19,600

44,200 (in favour of the new regime)

In this scenario, the new income tax regime is beneficial for Amit in comparison to the old slabs and rates. However, if Amit claims deductions and exemptions offered for medical insurance premiums, NPS investment, education loan, etc., the old tax regime will help him save more of his hard-earned money. Let’s consider that with another example.

Scenario 2: Old Income Tax Regime is Better

Let us assume that Keshav's total annual income is ₹12 Lakhs too. However, unlike Amit, Keshav chooses to claim most of the deductions offered under the old income tax regime. The following table outlines the tax calculation based on his salary and deductions as per the old and new income tax structure.

Particulars

Old regime

New regime

Difference

Gross total income

₹12,00,000

₹12,00,000

-

Less: Standard deduction

₹50,000

-

-

Less: Deductions u/S 80C

₹1,50,000

-

-

Less: Deductions u/S 80CCD

₹50,000

-

-

Less: HRA u/S 10(13A)

₹1,50,000*

-

-

Taxable Income

8,00,000

12,00,000

-

     

 

Tax payable (as per slab rate)

   

 

Up to Rs. 2.5 Lakhs

-

-

-

Rs. 2.5 Lakhs to Rs. 5 Lakhs

₹12,500 (at 5%)

₹12,500 (at 5%)

-

Rs. 5 Lakhs to Rs. 7.5 Lakhs

₹50,000 (@ 20%)

₹25,000 (@ 10%)

-

Rs. 7.5 Lakhs to Rs. 10 Lakhs

₹10,000 (@ 20%)

₹37,500 (@ 15%)

-

Rs. 10 Lakhs to Rs. 12.5 Lakhs

-

₹40,000 (@ 20%)

-

Rs. 12.5 Lakhs to Rs. 15 Lakhs

-

 

-

Tax Liability

72,500

1,15,000

-

Health & Education Cess (4%)

2,900

4,600

-

Total Tax Liability

75,400

1,19,600

44,200 (in favour of the old regime)

*House Rent Allowance (HRA) varies based on an individual’s basic salary and their city of residence.

In this scenario, the old income tax regime is quite beneficial in comparison to the new tax structure. However, if Keshav claims lower deductions on tax-saving tools, the new tax regime will help him save more money when filing ITR. If you need help filing your ITR through the new e-Filing portal, check out “How to File ITR” on Finserv MARKETS.

Additionally, those who fall in the income bracket of between ₹5-10 Lakhs and claim no deductions (apart from standard deduction) will highly benefit from the new income tax structure. On the other hand, people who fall under the income bracket of above ₹15 Lakhs might benefit from the old income tax regime.

It goes without saying that each taxpayer should calculate their tax liability and factor in deductions from their tax-saving tools before opting for either of the tax regimes.

Surcharges on the Tax Rates: Old vs. New

The following table gives a brief overview on the surcharges applicable on the old and new income tax regimes.

Surcharges

New Income Tax Regime

Old Income Tax Regime

For Individuals below 60 years, Senior Citizens, and Super Senior Citizens

  • 10% of the income tax if the total income >₹50 Lakhs

  • 15% of the income tax if the total income >₹1 Crore

  • 25% of the income tax if the total income >₹2 Crores

  • 37% of the income tax if the total income >₹5 Crores

  • 10% of the income tax, where the total income exceeds ₹50 Lakhs and goes up to ₹1 Crore

  • 15% of the income tax, where the total income exceeds ₹1 Crore

Tax Rebate under Section 87A

Section 87A is a legal provision that provides a tax rebate under the Income Tax Act, 1961. It was implemented post the Financial Act, 2013, and is known to provide tax relief to individuals earning below a certain income threshold.

As per Section 87A, any resident Indian individual with income below ₹5 Lakhs is eligible to claim a tax rebate, subject to a maximum of ₹12,500. Therefore, any person earning less than ₹5 Lakhs in total taxable income is eligible to avail a full income tax rebate. However, note that this rebate is available only to individuals and not businesses and is calculated before adding the health and educational cess of 4%.

FAQs on Income Tax Calculator

  • ✔️Is it mandatory to opt for the new income tax regime when filing my ITR in FY2021?

    No, it is not mandatory to opt for the new income tax regime when filing your ITR in the financial year 2020-21. Taxpayers can choose between the old and new income tax regimes at the start of each financial year.

  • ✔️Can I claim deductions under Section 80C in the new income tax regime?

    No. The new income tax structure has eliminated several deductions and exemptions that were offered under the old tax regime. The deductions offered under Section 80C are one of the many that you cannot claim as part of the new income tax regime.

  • ✔️How to calculate income tax?

    You can use the income tax calculator available on Finserv MARKETS to determine the amount you need to pay as tax in a given Assessment Year (AY).

  • ✔️Which income is not taxable in India?

    Incomes enlisted under Section 10 of the Income Tax Act, 1961, are not taxable in India.

  • ✔️What is the difference between income tax exemption and deduction?

    Income tax exemptions are limited to particular income sources and do not apply to the total income. For example: House Rent Allowance (HRA) or Leave Travel Allowance (LTA). You can also get tax exemptions when you reinvest long-term capital gains earned from a property sale within a certain time. On the other hand, income tax deductions are claimed on the total income. Certain specified investment instruments can be claimed for tax deductions under various sections of the Income Tax Act, 1961.

  • ✔️Are income tax calculators accurate?

    The income tax calculator on Finserv MARKETS provides an efficient but basic computation of your tax liability. When it comes to filing your returns, it is advised that you refer to the provisions set under the Income Tax Act, 1961, or hire the services of a professional.

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