The Income tax calculator India 2020 – 2021 is a simple to use online tool that helps you estimate your taxes depending on your income after the Union Budget is presented. We have updated our tool in line with the new income tax changes proposed in the Indian Union Budget 2020-21.
Finance Minister Nirmala Sitharaman slashed personal income tax for people, annulled profit charge for organizations and reported record spending in agribusiness and framework segments to pull out the economy from its most exceedingly terrible log jam in over 10 years.
Introducing her second spending plan in Parliament, Sitharaman said the 2020-21 Budget was planned for boosting livelihoods and upgrading buying power, focusing on that the economy’s essentials were solid and expansion was very much contained.
Under the proposed I-T piece, yearly pay up to Rs 2.5 lakh is excluded from charge. Those people procuring between Rs 2.5 lakh and Rs 5 lakh will pay 5 percent charge. A 10 percent duty will be charged on pay between Rs 5 and 7.5 lakh, 15 percent, 20 percent and 25 percent on next Rs 2.5 lakh each and 30 percent on pay above Rs 15 lakh.
Following are the steps to use the / income tax calculator India / income tax calculator 2019 – 2020:
- Enter your Gross salary in the income tax calculator i.e. salary before deducting various exemptions such as HRA, LTA, standard deduction, and so on.
- Enter HRA and LTA to derive the taxable income from the salary
- You must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property, other income, etc..
- Under deductions u/s 80C you are eligible to show deductions to a maximum of Rs. 1.50 Lakhs.
- If applicable enter relevant values in deductions chapter VI A which in turn helps you to derive the total deductions.
- You can also find the summary of the key factors of income tax for the year and even a tax comparison chart is provided just to ensure proper understanding of income tax calculator 2019 – 2020.
Income tax calculation India for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. On the off chance that you get HRA and live on lease, you can guarantee exception on HRA.
On top of these exemptions, a standard deduction of Rs 40,000 was introduced in budget 2018. This has been increased to Rs 50,000 in budget 2019.
To calculate Income tax In India, include income from all sources
- Income from Salary (salary paid by your employer)
- House property income (add any rental income, or include interest paid on home loan)
- Income from capital gains (income from sale purchase of shares or house)
- Business/profession incomes (income from freelancing or a business or profession)
- Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)