The income tax calculator is a straightforward online tool that assists you in calculating your taxes based on your income. It is simple to use, understand, and anyone may use it to determine their tax liability under both – Old and New regime.
Income tax is a tax levied by the Indian government on profits earned by businesses and individuals. Individuals must pay taxes on a percentage of their net annual income based on their taxable income group’s rate.
Taxpayers must file their Income Tax Returns (ITR) for the financial year 2020-2021 by August 31st, 2021.
|Income Groups||Tax Rate|
|Up to ₹ 2.50 lakh||Nil|
|Above ₹2.50 lakh and upto a maximum of ₹5 lakh||5%|
|Above ₹ 5 lakh and upto a maximum of ₹ 7.5 lakh||10%|
|Above ₹7.5 lakh and upto a maximum of ₹10 lakh||15%|
|Above ₹10 lakh and upto a maximum of ₹12.5 lakh||20%|
|Above ₹12.5 lakh and upto a maximum of ₹15 lakh||25%|
|Above ₹ 15 lakh||30%|
|Income Groups||Tax Rate||Income||Tax (in ₹)|
|Above ₹2.50 lakh and upto a maximum of ₹5 lakh||5%||₹ 5 lakh||₹ 25,000|
A new tax regime has been introduced by the Finance Minister for individuals and HUFs with an annual income of Rs. 15 lakh. It creates new tax groups with lower tax rates and no deductions (80C, 80CCC, 80D, 80G, mortgage interest, etc) or exemptions (LTA, HRA, Standard deduction of salary, etc)
If your income is below the basic exemption amount, you are not obliged to file income tax returns. Those with an annual income of less than ₹ 2.5 lakh can only claim an income tax refund by filing an ITR. Otherwise, you must file income tax returns if your income exceeds the basic exemption amount.