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

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.

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).

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

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

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

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

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

Calculate Taxes for Financial Year

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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

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

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

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

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

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

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

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

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 is a tool which helps you to make simple tax calculations. It can be used to determine the approximate amount that you are liable to pay as tax on the income that you have earned over a financial year. The income tax calculator gives you an estimate of your taxable income and the tax payable once you provide the necessary details to the tool. It may not give you an exact figure, but using an income tax calculator helps you to plan your taxes in a better way.

How is Your Income Tax Calculated?

In India, the income tax is not the same for all individuals. The income tax is calculated on the basis of the tax slabs. The higher your income, the higher will be your tax rate. Let us have a look at the current income tax slabs and the tax rates for the financial year 2019-2020. The following are the tax slabs for Indian tax-payers who are less than 60 years old.

Income

Tax Rate

Upto Rs. 2,50,000

Nil.

Rs. 2,50,001 to Rs. 5,00,000

5% + 4% cess

Rs. 5,00,001 to Rs. 10,00,000

Rs. 12,500 + 20% of Income between Rs. 500,000 and Rs. 10,00,000 + 4% cess

Above Rs. 10,00,000

Rs. 1,12,500 + 30% of Income exceeding of Rs 10,00,000.+ 4% cess

 

Income Tax for Senior Citizens

The income tax slabs for senior citizens are different from other taxpayers.

  • Unlike non-senior citizens, who pay income tax for incomes above Rs 2.5 lakh, senior citizens up to 80 years, have an exemption of Rs 3 lakh at present. For those above 80 years of age, the exemption is Rs 5 lakh.
  • The tax rate for senior citizens between 60 and 80 years of age, with an annual income between Rs. 3 lakh and Rs. 5 lakh is 5%+ 4% cess, whereas those with income between Rs. 5 lakh and 10 lakh have to pay tax of Rs.10,000 + 20% of Income between Rs. 5 lakh to 10 lakh+ 4% cess. Those with an annual income is above Rs. 10 lakh will have to pay a tax Rs. 1.1 lakh + 30% of Income exceeding of Rs 10 lakh+ 4% cess.
  • The tax rate for senior citizens above 80 years of age, with an annual income between Rs. 5 lakh and Rs.10 lakh is 20%+ 4%cess, whereas those with income above 10 lakh have to pay tax of Rs.1 lakh + 30% of Income exceeding Rs. 500,000 + 4% cess.

As a law abiding citizen, it is your responsibility pay taxes on time. Moreover, filing ITR on time can ease your loan approval, visa processing and help you avoid penalty.

You can easily calculate your taxable income and tax payable by using an income tax calculator at Finserv MARKETS.

How to Use the Income Tax Calculator?

The steps to use our tool are as given below –

  • Choose your age bracket to determine your tax slab
  • Enter your annual salary including all your bonuses and variable components
  • Enter your investment amount under section 80C and 80CCD(1B)
  • Enter your medical insurance premium under section 80D
  • If you live in a rented house, enter your HRA exemption.
  • If you have a home loan, enter the interest paid as it is eligible for tax deduction
  • If you have an educational loan, enter the interest paid, as it is eligible for tax deduction.

By filling in all the required details in the income tax calculator, you can easily get an estimate of your taxable income and tax payable.

Tax Benefits

In order to incentivize the tax-paying and law-abiding citizens, the government provides certain benefits to the individual tax-payers. These benefits are in the form of tax-saving. You save some tax if you make any of the prescribed investment or expenditure. For instance, a person in the 30% tax bracket, can end up saving Rs 46,800 if s/he utilizes the benefits under Section 80C of the Income Tax Act, 1961.

Let us take a look at two such benefits that you can avail:

Home Loan Tax Benefits

Nowadays, due to the price hike in the real estate sector, a large number of individuals are availing a home loan to purchase their dream house. The good news is that there are various tax benefits that can be availed on a home loan.

  • For home loans, both principal and the interest paid are eligible for tax deduction.
  • Under section 80C of the Income Tax Act, home loan borrowers are eligible for a deduction of Rs.1,50,000 on the principal amount of the home loan. Also, stamp duty charges and registration charges are eligible for tax deduction under section 80C.
  • At the same time, under section 24 of the Income Tax Act, a maximum deduction of Rs. 2 lakhs can be availed on the interest paid towards the home loan. However, this tax benefit can be availed only if the borrower has the possession of the house.
  • You must note that all home loan tax benefits are valid only if the construction of the purchased property is complete.

Tax Benefit on ULIPs

A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that provides the investors both insurance and investment under a single integrated plan. ULIP plans give you the flexibility to invest your money as per your risk-appetite and financial needs. Since ULIP plans also provide a life cover, you get the flexibility of choosing your sum assured at the beginning of your policy.  One of major advantages of investing in a ULIP plan is liquidity. After the lock-in period, you can opt for partial withdrawals in case of unforeseen events. By investing in ULIPs, you can avail several tax benefits:

  • Under section 80(C) of the Income Tax Act, the investments made in ULIPs are eligible for tax deductions. A maximum deduction of Rs 1.5 lakhs can be availed under section 80C of the Income Tax Act.
  • Since ULIP also provides life cover, deduction is available on life insurance too. Under Section 80C, up to 10% of the sum assured or annual premium, whichever is lower can be availed, subject to a maximum limit of Rs. 1.5 lakhs.
  • You can also receive a tax-free Maturity Benefit, under Section 10 (10D).

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