What Is Life Insurance?
At its essence, a life insurance policy is a contract signed between the life insurance provider and a policy holder.
WHAT IS INCOME TAX CALCULATOR FOR FY 2022-23 (AY 2023-24)?
There are two tax regimes – old and new. Under the old regime, all incomes are taxed but certain exemptions and deductions can reduce taxable income and increase tax savings.
The new tax regime offers 6 income slabs and a lower tax rate but no exemptions or deductions whatsoever.
Depending on the regime you choose, the Income Tax Calculator AY 2022-23 estimates your tax liability after taking into account all the various factors, in a simple, stress-free and time-saving manner.
How to Use Income Tax Calculator
1) To calculate income tax, simply enter your details on the IndiaFirst tax calculator online.
2) Enter your age and the financial year, e.g., 2022-23.
3) Enter your gross income form all sources, i.e., salary or business, short term and long term investments, FD interest, rents received on property, taxable gifts and others.
4) Add the details of all the available deductions.
5) The income tax calculator 2022-23 will calculate income tax online on the basis of both, the old and new tax regime as per the latest regulations.
6) This will give you an estimate of your tax savings which can be reinvested in IndiaFirst’s tax saving plans. (add link to url)
How to Calculate Income Tax for FY 2022-23 (AY 2023-24)?
Depending on whether you choose the old or new regime, the income tax calculator shows you how to calculate tax. The old regime offers the advantage of multiple allowances, deductions and expenses. The new regime does not provide these benefits but offers a lower taxation rate.
Before you choose your regime to calculate income tax online, it is important to understand the difference between the old vs new tax regime calculator. This will help you assess your tax liability.
| Net Taxable Income (Rs) | Old Tax Regime |
New Tax Regime
|
|---|---|---|
| 0-2.5 lakhs | Exempt | Exempt |
| 2,50,001 to 5 lakhs | 5% over 2.5 lakhs | 5% over 2.5 lakhs |
| 5,00,001 to 7.5 lakhs | Rs. 12,500 + 20% over Rs. 5 lakh | Rs. 12,500 + 10% over Rs. 5 lakh |
| 7,50,001 to 10 lakhs | Rs. 12,500 + 20% over Rs. 5 lakh | Rs. 37,500 + 15% over Rs. 7.5 lakh |
| 10,00,001 to 12.5 lakhs | Rs. 1,12,500 + 30% over Rs. 10 lakh | Rs. 75,000 + 20% over Rs. 10 lakh |
| 12,50,001 to 15 lakhs | Rs. 1,12,500 + 30% over Rs. 10 lakh | Rs. 1.25 lakh + 25% over Rs. 12.5 lakh |
| 15 lakhs+ | Rs. 1,12,500 + 30% over Rs. 10 lakh | Rs. 1,87,500 + 30% over Rs. 15 lakh |
Under the new tax regime calculator, individuals with net taxable income between Rs. 5 lakh and Rs. 15 lakh can reduce their liability as they come under the lower income tax slab rate.
*Tax slab rates for Senior Citizens between 60 to 80 years
| Net Taxable Income (Rs) | Old Tax Regime | New Tax Regime |
|---|---|---|
| 0-2.5 lakhs | Exempt | Exempt |
| 2,50,001 to 3 lakhs | Exempt | 5% over Rs. 2.5 lakh |
| 3,00,001 to 5 lakhs | 5% above Rs. 3 lakh | 5% over Rs. 2.5 lakh |
| 5,00,001 to 7.5 lakhs | Rs. 10,000 + 20% over Rs. 5 lakh | Rs. 12,500 + 10% over Rs. 5 lakh |
| 7,50,001 to 10 lakhs | Rs. 10,000 + 20% over Rs. 5 lakh | Rs. 37,500 + 15% over Rs. 7.5 lakh |
| 10,00,001 to 12.5 lakhs | Rs. 10,000 + 20% over Rs. 5 lakhs | Rs. 75,000 + 20% over Rs. 10 lakhs |
| 12,50,001 to 15 lakhs | Rs. 1,10,000 + 30% over Rs. 10 lakhs | Rs. 1.25 lakh + 25% over Rs. 12.5 lakhs |
| 15 lakhs+ | Rs. 1,10,000 + 30% over Rs. 10 lakh | Rs. 1,87,500 + 30% over Rs. 15 lakh |
*For Individuals above the age of 80 years (Super Senior Citizens)
| Net Taxable Income (Rs) | Old Tax Regime | New Tax Regime
|
|---|---|---|
| 0-2.5 lakhs | Exempt | Exempt |
| 2,50,001 to 5 lakhs | Exempt | 5% over 2.5 lakhs |
| 5,00,001 to 7.5 lakhs | 20% over Rs. 5 lakhs | Rs. 12,500 + 10% over Rs. 5 lakhs |
| 7,50,001 to 10 lakhs | 20% over Rs. 5 lakhs | Rs. 37,500 + 15% over Rs. 7.5 lakhs |
| 10,00,001 to 12.5 lakhs | 20% over Rs. 5 lakhs | Rs. 75,000 + 20% over Rs. 10 lakhs |
| 12,50,0001 to 15 lakhs | Rs. 1,00,000 + 30% over Rs. 10 lakhs | Rs. 1.25 lakh + 25% over Rs. 12.5 lakhs |
| 15 lakhs+ | Rs. 1,00,000 + 30% over Rs. 10 lakhs | Rs. 1,87,500 + 30% over Rs. 15 lakh |
*Income Tax Slab for New Regime FY 2022-23 (AY 2023-24)
The new tax regime divides tax payers into slabs, which have different tax rates. For individuals under 60 years of age, it is:
| Net Taxable Income (Rs) | New Tax Regime
|
|---|---|
| Up to 2.5 lakhs | Exempt |
| 2,50,001 to 5 lakhs | 5% on the amount above INR 2,50,000 (with a total rebate under Section 87A) + 4% cess on income tax |
| 5,00,001 to 7.5 lakhs | INR 12,500 + 10% on the income over INR 5,00,000 + 4% cess on income tax |
| 7,50,001 to 10 lakhs | INR 37,500 + 15% on the income over INR 7,50,000 + 4% cess on income tax |
| 10,00,001 to 12.5 lakhs | INR 75,000 + 20% on the income over INR 10,00,000 + 4% cess on income tax |
| 12,50,001 to 15 lakhs | INR 1,25,000 + 25% on the income over INR 12,50,000 + 4% cess on income tax |
| 15 lakhs+ | INR 1,25,000 + 25% on the income over INR 12,50,000 + 4% cess on income tax |
*Surcharge Applicable for Old and New Tax Regime
Taxpayers with a net taxable income exceeding 50 lakhs in FY 2022-23 will have to pay a surcharge based on the income tax slab rates computed for FY 2022-23.
| Total Income | Rate of Surcharge |
|---|---|
| Exceeding INR 50 lakhs but not exceeding INR 1 Cr. | 10% |
| Exceeding INR 1 Cr. but not exceeding INR 2 Cr. | 15% |
| Exceeding INR 2 Cr. but not exceeding INR 5 Cr. | 25% |
| Exceeding INR 5 Cr. | 37% |
Calculate Income Tax for the Old Regime
The old regime provides exemptions and deductions under Section 80C, which reduces the taxable income. When using the tax calculator old regime, these must be deducted from the gross income to arrive at the taxable income. The tax payer’s age and income bracket are also important considerations.
Calculate Income Tax for the New Regime
The new regime offers more tax slabs and lower rates but no exemptions as the old regime. This simplifies calculating your tax liability and the new tax regime calculator makes it easier.
Eligibility Criteria to File Income Tax
Anyone whose income falls within the tax slabs is eligible to pay tax. This works out to up to Rs. 2.5 lakhs p.a. for those below 60 years old; up to Rs. 3 lakhs p.a. for senior citizens between 60-80 years old; up to Rs. 5 lakhs p.a. for super seniors above 80 years of age.
Income Tax Exemptions for Salaried Individuals
Deductions and exemptions are only allowed if you file your tax under the old regime.
1) Standard deduction or INR 50,000
2) House Rent Allowance
3) Leave Travel Allowance
4) Work-related expenses
5) Deductions under the Income Tax Act such as contributions to NPS, life insurance premium, ELSS, tuition fee, tax-saving FDs, health insurance premiums, home loan repayments, education loan interest payments, contributions to valid charitable organisations, interest accrued on savings account
Benefits of Filing Income Tax Online
1) The tax calculator online calculates taxes quickly and easily and offers multiple benefits.
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2) Enables faster tax refunds
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3) Provides instant confirmation of filing and status updates
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4) Offers safety and security
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5) Pay at your convenience to avoid any late fee or penalty
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6) Provides eligibility to offset losses against present and future investment gains
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7) IT Return serves as income and address proof required for visa, loan and insurance application
Knowledge Centre
What is the professional tax in India?
Professional tax is a direct tax deducted from income earned from any profession, trade, or employment. As it is levied by the state government, it may vary from state to state. The tax is calculated basis predetermined slabs and ranges between Rs. 200 to Rs. 2500.
How to calculate income tax on salary?
Here is an easy formula that shows you how to calculate income tax on salary with example.
Basic Salary + HRA + Special Allowance + Transport Allowance + any other allowance = Gross Income from Salary
From this Gross Income, minus any Deductions and Professional Tax (if any).
This will give you the Net Taxable Income.
For example:
Kavita Shrivastava earns a basic salary of ₹ 1,00,000 per month
House Rent Allowance (HRA) of ₹ 45,000 per month
Special Allowance of ₹ 20,000 per month
Leave Travel Allowance (LTA) of ₹ 20,000 per Annum
Her taxable income would be calculated as follows:
| Components | Amount |
|---|---|
| Basic Salary | 1,00,000 x 12 = 12,00,000 |
| House Rent Allowance (HRA) | 45,000 x 12 = 5,40,000 |
| Special Allowance | 20,000 x 12 = 2,40,000 |
| Leave Travel Allowance (LTA) | 20,000 |
| Total Annual Salary (Income) | 20,00,000 |
Kavita’s salary is above Rs. 15 lakhs. If you calculate income tax online with the tax calculator old regime and new tax regime calculator, this is what you will get:
| Old Tax Regime | New Tax Regime | |
|---|---|---|
| Total Annual Salary | ₹ 20,00,000 | ₹ 20,00,000 |
| Gross Total Income | ₹ 20,00,000 | ₹ 20,00,000 |
| (now deduct all the applicable deduction, allowances, and exemptions) | ||
| Less: Standard Deduction | – ₹ 50,000 | – |
| Less: Deductions under Section 80C | – ₹ 1,50,000 | – |
| Less: Deductions under Section 80D | – ₹ 50,000 | – |
| Less: House Rent Allowance (out of 5,40,000 deduction of) | – ₹ 3,00,000 | – |
| Less: Leave Travel Allowance (out of 20,000 deduction of)
| – ₹ 10,000 (bills must be submitted) | – |
| Total Taxable Income | ₹ 14,40,000 | |
| Total Tax Payable | ₹ 2,54,280 | ₹3,37,500 |
Under the old tax structure, investment in tax saving schemes can further reduce Kavita’s tax liability.
How to calculate age of senior citizen for income tax?
If you are above 60 years but less than 80 years old during the previous year, you are considered a “senior citizen”. Those above 80 years during the previous year are “super seniors”. The age of senior citizens and super seniors is calculated from April 01 of the financial year for the income tax calculator.
How to calculate income tax return?
Anyone salaried or self-employed can calculate income tax online using the income tax calculator. It is a simple, effective tool that guides you through the process. Once you fill in the details, it gives you an estimation of the taxable income and tax payable.
Which income is not taxable in India?
The following incomes are tax-free.
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1) Agricultural income
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2) Receipts by an individual from Hindu Undivided Family
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3) Share from a Partnership Firm or LLP, which has been separately assessed for income tax
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4) NRI tax free incomes
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5) Certain types of incomes earned by foreigners
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# Commutation of pension
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# Gratuities
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# Voluntary retirement or separation payment
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# Leave salary
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# Insurance sum assured
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6) Money received from government-recognised provident fund (PF), approved superannuation fund or PPF
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7) Certain types of interest income
What is the maximum non-taxable income limit?
Individuals less than 60 years with an income up to Rs.2.5 lakhs are exempted from tax, under both tax regimes.
Under the old tax regime, senior citizens (60-80 years) are exempted from paying tax up to Rs. 3 lakhs and super citizens (80 years+) up to Rs. 5 lakhs. Under the new tax regime, both senior citizens and super seniors are exempted from paying tax up to Rs. 2.5 lakhs.
How much tax do I pay on 10 lakh salary?
Under the income tax calculator AY 2022 23, individuals under 60 years receiving income from salary, business or investments will pay:
Old tax regime - Rs. 12,500 + 20% over Rs. 5 lakhs i.e., Rs.1,12,500
New tax regime - Rs. 37,500 + 15% over Rs. 7.5 lakhs i.e., Rs. 1,87,500
What is the income tax for 6 lakhs?
Individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax as per the new tax regime calculator, and 20% as per the tax calculator old regime.
How much income is tax free in India?
As per the new tax regime calculator:
For individuals below 60 years - below Rs. 2.5 lakh
For senior citizens aged 60 to 80 years - below Rs. 3 lakhs
For super seniors aged 80+ years – below Rs. 5 lakhs
As per the tax calculator old regime:
For individuals below 60 years - below Rs. 2.5 lakh
For senior citizens aged 60 to 80 years - below Rs. 3 lakhs
For super seniors aged 80+ years – below Rs. 2.5 lakhs
What is the minimum salary to pay income tax?
Any income that that exceeds Rs. 2.5 lakhs per year will be taxed.
How much tax should I pay on my salary?
It depends on various factors. The new tax regime calculator divides income tax payers into 6 slabs and you pay tax depending on the slab you come under. The tax calculator old regime also has predetermined limits but offers more tax saving options.
How to calculate income tax on salary with old regime?
Simply enter all your details on the income tax calculator and select the calculator old regime to get a quick and easy basic tax calculation.
What is the existing rate for income tax slab (7.5-10 lakhs)?
As per income tax interest calculator, you pay 20% over Rs. 5 lakh under the old regime, and 15% over Rs. 7.5 lakh under the new regime.
Which tax regime is better for me?
Before choosing the tax regime, consider your income structure and available deductions. Use the calculator old regime to calculate your tax liability after considering income from all sources and availing all the eligible exemptions and deductions. Then use the new tax regime calculator to compute your tax liability according to the tax slab rates given under it. Now compare the two to see which suits you better.
Can I switch between tax regimes?
Yes, you can switch between the old and new tax regimes every year.
Has the 80C exemption been scrapped?
Section 80C has not been scrapped and still entitles you to certain deductions under the old tax regime, allowing you to reduce your taxable income by Rs 1,50,000.
