Regular post-retirement income | Additional tax benefit on investments up to ₹50,000 u/s 80CCD (1B) - EEE Category | Regulated by PFRDA (Pension fund regulator under Ministry of Finance, Govt. of India)

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.

Paying your income tax as a law-abiding citizen is one of the most crucial duties you can have to your country. These taxes directly impact the growth and development of the nation and paying these taxes on time is imperative. 

 

The Income Tax Department has eased the pressure of this duty by making the process of paying taxes a convenient one through their e-filing portal. Moreover, the process has been made simpler and has allowed you transparency through tools such as the Income Tax Calculator in India which can help you compute your taxes on your own without the blurs of an agent or accountant feeding you your monetary values for you. 

What is an Income Tax Calculator?

Planning your taxes is one of the most important moves to make on your financial board since shirking tax laws is not a wise sacrifice. For this, you are required to calculate, compute and think ten steps ahead. This is an exhaustive process that professionals may portray as a breeze but most honestly is not. Such computations and calculations are tedious.

 

Hence, various entities on the internet have created special calculators that strictly help you calculate your income tax. Such calculators take into account the various provisions set by various sections of the Income Tax Act, your total income, your investments, etc. and provide you with close to accurate results that can help you formulate and strategize your tax payment plans. Hence, the Income Tax Calculator can be your personal accountant. 

How to use an Income Tax Calculator Online?

The income tax calculator on Bajaj Markets takes into account various factors such as your income, the source of that income, your investments, insurances, etc. which takes the calculation process as close to accuracy as possible. With all that is considered and how detailed the calculations may seem to you, using an online tax calculator is not quantum physics. A detailed guide of how to use the calculator is given below.

  • Step 1

Pick the financial year for which you would like to calculate your taxes.

  • Step 2

Choose your category by age, considering that tax liabilities differ according to the tax-payer’s age. 

  • Step 3

Pick the gender you identify as and whether the city you live in would be considered metropolitan or non-metropolitan. 

  • Step 4

Type in your yearly income.

  • Step 5

Select ‘Next’ to proceed.

  • Step 6

Answer as required when asked for various details such as your investments, your insurances, loan details, interest returns, deposits, etc. 

  • Step 7

Click on ‘Calculate Now’.

  • Step 8

Your tax details should be displayed on your screen.

Tax-paying Categories that Should Calculate Income Tax

Once you’ve acquired a surface level understanding of how to use the calculator, it is only ceremonious to dive deeper into the tax-paying categories of the country. These include salaried individuals, individuals earning income through property, those earning through their business, those benefiting from investment returns and various other sources and a detailed explanation of each one of these is given below. 

  • Salaried Individuals

Salaried individuals are those who work for other employers such as companies, institutions, organisations, offices, etc. The net salary received by this group of tax-payers is distinctly factored into their gross salary amount, Employee Provident Fund, gratuity, various allowances and more. Levied upon this are taxes which are deducted at the source, that is, the tax amount is subtracted from the salary, along with other deductions, before the gross salary reaches the employee. 

  • Property Income

Owning housing property is a great investment and many must assume that income tax has nothing to do with an investment like this since property taxes already exist. However, they stand corrected. Various housing property owners choose to lease their property to tenants who pay the owners a monthly rent amount to occupy the space owned by their landlords. This becomes an alternate income for the owners and hence, rental income is liable to undergo tax deductions under the Income Tax Act of 1961.

  • Professional/Business Gains

Be it entrepreneurship or free-lancing, anything capital earned, be it primary or secondary capital, is an income nonetheless. Hence, it must bear the brunt of tax deductions. As per the Income Tax Act, money earned through a business or any professional source is considered an income and therefore, its net amount is required to be subtracted by a certain tax percentage. 

  • Capital Gains

Many people out there invest in various asset-growing instruments such as stocks, mutual funds, real estate, mutual funds, etc. as long-term or short-term capital gains. It is crucial to take into account the tax levies on such capital gains since they differ on the basis of various factors such as the nature of the gains, the duration of the gains, etc. 

  • Other Sources

Apart from the ones mentioned above, various sources can bring you income. This could include a cash prize, a lottery, cash gifts, etc. In such cases, the tax is usually deducted at source. 

How to Calculate Income Tax?

As an earning citizen of the country, it is your primary duty to pay due taxes to the government depending upon your assets, income, etc. To compute and compound these taxes is a task too heavy to shoulder and archaic manual calculating makes the job all the more difficult. However, it is your right to know exactly how your Income Tax is calculated by accounting professionals and advanced automatic calculators. Hence, a detailed breakdown of how Income Tax calculations are computed by an online income tax calculator is given below for your understanding and convenience. 

  • Income Calculation

Start by jotting down your net income, that is, the culmination of all your returns and earnings. Make all the necessary deductions such as house rent allowance, gratuity, etc. before you consider an amount for calculations. This would be a total of your gross income. 

  • Taxable Net Income Calculation 

Your taxable income refers to the total income that has the potential to be levied with taxes. Considering this as the second step of your tax calculations can help you strategize and infer the various tax saving investments you could benefit from. This includes rent allowance, insurances, ULIPs (Unit Linked Insurance Plans), ELSS (Equity Linked Savings Schemes), provident funds, etc. You can understand this furthermore by learning about the provisions under various sections that harbour your right to tax benefits. 

 

1. Section 80C

As per the citizen categories considered by the Income Tax Act of 1961, individuals and Hindu Undivided Families may exercise their right to a maximum amount of ₹1.5 Lakhs in deductions claims as per Section 80. ELSS, home loan repayment, life insurance, etc. are instruments that could cater to you by helping you access tax benefits. 

 

2. Section 80CCD

According to Section 80CCD (1), monetary contributions made to the National Pension Scheme makes you eligible for tax benefits. Up to ₹1.5 Lakhs can be claimed under this section. Added to this equation is Section 80CCD (1B) which allows you an additional ₹50,000 limit for tax deduction claims, totaling the tax benefit amount to ₹2 Lakhs. 

 

3. Section 80D

As per Section 80D, the premium amount one pays to an insurer to buy health insurance is tax deductible. This applies to tax-payers who belong to the categories of ‘Individual’ and ‘Hindu Undivided Families’. Health insurance for yourself, your partner or your children is deductible by ₹25,000 while in cases of insurance where one’s parents are insured as well, an additional amount of ₹25,000 to ₹50,000 is deductible depending on their age.

 

4. Section 80DD

This section caters to dependent and specially abled family members. If you happen to be financially responsible for the medical requirements of a specially abled loved one, you may claim up to ₹1.5 Lakh of deductions. The claimable deduction amount depends on the condition of the specially abled individual.

 

5. Section 80E

This section states the provisions that individuals repaying educational loans can benefit from much like those repaying home loans. However, the deductions can be consistently claimed for 8 years only. 

  • Tax Slab

The tax slab of the financial year 2022-23 of the old and new regime has sustained as per the tax slab of FY 2021-22. The New Tax Regime, while simplifying the process of filing taxes, can help you derive a total taxable amount after subtracting a deductible tax value from your total income and this can be easily achieved with the online Income Tax calculator. 

 

The current regime states that your taxability is determined by the income category that you fall under. 

  • Central Calculation

Now that calculable variables have been derived, the actual calculation begins. Manually carrying out such computations and calculations can be very counterproductive since this practice is archaic, complicated and inconvenient. Hence, with your calculable values accounted for, you may take help from an online tax calculator.

  • Combine Taxes

After identifying the taxes you are liable to pay, the tax benefits you can claim and other tax liabilities, it’s time to combine those taxes to derive a collective number. At this point, Section 87A comes into play, and here is how it works. 

 

If your tax liabilities add up to less than ₹5 Lakhs, the Government of India has offered you the opportunity to claim up to ₹12,500 as rebate. Please note that exceeding the tax amount limit of ₹5 Lakhs makes you non-eligible for this rebate. 

The Old and New Regime

A New Income Tax Regime has been introduced in India which provides higher income groups with smaller tax rates. However, the old and new tax regime now co-exist in the country when it comes to taxation and it applicable subjectively is various areas of finance. 

 

Both tax slab rates vary depending on your age, income level, etc. Once you have all the information that fits your specific financial scenario, you will be able to calculate your taxes seamlessly. Given below is a comparison between the new and the old tax regime for your perusal to help you better understand how you can use an Income Tax Calculator as your very own old and new tax regime calculator.

Taxable Income

Old Tax Regime

New Tax Regime

₹0 to ₹2.5 Lakhs

-

-

₹2.5 Lakhs to ₹5 Lakhs

5% onwards (₹2.5 Lakhs)

5% onwards (₹2.5 Lakhs)

₹5 Lakhs to ₹7.5 Lakhs

₹12,500 + 20% and above (₹5 Lakhs)

₹12,500 + 10% and above (₹5 Lakhs)

₹7.5 Lakhs to ₹10 Lakhs

₹12,500 + 20% and above (₹5 Lakhs)

₹37,500 + 15% and above (₹7.5 Lakhs)

₹10 Lakhs to ₹12.5 Lakhs

₹1,12,500 + 30% and above (₹10 Lakhs)

₹75,000 + 20% and above (₹10 Lakhs)

₹12.5 Lakhs to ₹15 Lakhs

₹1,12,500 + 30% and above (₹10 Lakhs)

₹1,25,000 + 25% and above (₹12.5 Lakhs)

₹15 Lakhs and above

₹1,12,500 + 30% and above (₹10 Lakhs)

₹1,87,500 + 30% and above (₹15 Lakhs)

Tax Slab for Senior Citizens

The Income Tax Act of 1961 has offered special tax rates for senior citizens (60 years to 80 years of age) and the table given below holds all the relevant values associated with this tax slab. 

Taxable Income

Old Tax Regime

New Tax Regime

₹0 to ₹2.5 Lakhs

-

-

₹2.5 Lakhs to ₹3 Lakhs

-

5% (₹2.5 Lakhs)

₹3 Lakhs to ₹5 Lakhs

5% (₹3 Lakhs)

5% (₹2.5 Lakhs)

₹5 Lakhs to ₹7.5 Lakhs

₹10,000 + 20% (₹5 Lakhs)

₹12,500 + 10% (₹5 Lakhs)

₹7.5 Lakhs to ₹10 Lakhs

₹10,000 + 20% (₹5 Lakhs)

₹37,500 + 15% (₹7.5 Lakhs)

₹10 Lakhs to ₹12.5 Lakhs

₹10,000 + 20% (₹5 Lakhs)

₹75,000 + 20% (₹10 Lakhs)

₹12.5 Lakhs to ₹15 Lakhs

₹1,10,000 + 30% (₹10 Lakhs)

₹1.25 lakh + 25% (₹12.5 Lakhs)

₹15 Lakhs and above

₹1,10,000 + 30% (₹10 Lakhs)

₹1,87,500 + 30% (₹15 Lakhs)

Tax Slab for Super Senior Citizens

A super senior citizen refers to the tax-paying group that lies above the age of 80 years and such tax-payers are offered special tax percentages and liberties which are stated as shown below.

Taxable Income

Old Tax Regime

New Tax Regime

₹0 to ₹2.5 Lakhs

-

-

₹2.5 Lakhs to ₹5 Lakhs

-

5% onwards (₹2.5 Lakhs)

₹5 Lakhs to ₹7.5 Lakhs

20% (₹5 Lakhs)

₹12,500 + 10% (₹5 Lakhs)

₹7.5 Lakhs to ₹10 Lakhs

20% (₹5 Lakhs)

₹37,500 + 15% (₹7.5 Lakhs)

₹10 Lakhs to ₹12.5 Lakhs

20% (₹5 Lakhs)

₹75,000 + 20% (₹10 Lakhs)

₹12.5 Lakhs to ₹15 Lakhs

₹1,00,000 + 30% (₹10 Lakhs)

₹1.25 Lakhs+ 25% (₹12.5 Lakhs)

₹15 Lakhs and above

₹1,00,000 + 30% (₹10 Lakhs)

₹1,87,500 + 30% (₹15 Lakhs)

Benefits of Using the Income Tax Calculator

The Income Tax Calculator comes with various benefits that can make tax-paying easy for you. These benefits are stated as follows. 

  • Assessment

A detailed assessment of taxes and deduction claims can be very helpful when it comes to the calculation and computation of taxes. You will be able to carry out assessments like these with the automatic computations provided to you by the Income Tax Calculator.

  • Convenience

Since the Income Tax Calculator is an online tool, you can use it whenever and wherever you wish as per your convenience. Additionally, these calculators are free and can be used with no capping on the maximum number of tries. 

  • Near-accuracy 

The Income Tax calculator is fully automated which means that the calculations it carries out bring error-free results and it draws values that are close to accuracy. This can help you compute taxes within the matter of minutes and better yet, you can find the Income Tax Calculator online, allowing you 24/7 access to it. 

Who is Exempt from Income Tax?

Most income groups cannot be exempt from taxes as per the new tax regime introduced. However, a select few can earn the benefits of tax exemption and they are as follows.

 

  • Interest returns from post office savings account up to ₹7000

  • A life insurance’s maturity proceeds

  • EPF interest on contributions up to ₹2.5 Lakhs p.a.

  • Interest earned from Sukanya Sammriddhi Yojana account

  • Gifts/incentive of up to ₹5,000 p.a. from an employer

  • Allowances on the basis of employee performance

  • Gratuity up to ₹20 Lakhs in an employee’s lifetime

  • EPS/NPS contributions 

  • Interest returns from Personal Provident Fund (PPF)

FAQs on Income Tax Calculator

  • ✔️Is TDS computed in the calculations of the Income Tax Calculator?

    No, TDS is not taken into account by the Income Tax Calculator.

  • ✔️Does the Income Tax Calculator use a formula to derive a tax percentage?

    A basic formula, which you too can try, is used to calculate your tax deduction percentage. You need to simply divide your net income by the total tax amount for that particular financial year.

  • ✔️Is Income Tax computed on a gross salary?

    No, income tax is computed on a net salary which later derives your gross income after deductions and claims pertaining to a specific financial year. 

  • ✔️Can an Income Tax Calculator be used internationally?

    Yes, the Income Tax Calculator can be used internationally. It is an online tool that is globally accessible.

  • ✔️Is there a fee to use the Income Tax Calculator?

    Using the Income tax Calculator online demands zero fees from you. Additionally, you can use the calculator as many times as you’d like. 

  • ✔️How is the new tax regime different?

    The new tax regime simply offers lesser tax percentages to higher income groups, senior citizens and super senior citizens.