IT department's new Tax Calculator helps find out your applicable tax

Everybody has doubts whether whether which of the old or new tax systems would be beneficial. To provide clarity in advance, Tax Calculator is newly featured in the official portal of the Income Tax (IT) Department - www.incometax.gov.in and read on to find out how to use this latest service.

Hyderabad: Tax calculation should not be ignored under any circumstances. Doubts always linger how much tax your have to pay and whether old or new tax system is beneficial. To help tax payers in this respect, the Income Tax (IT) Department has newly introduced a tax calculator on its portal. By using this, one can easily find out things like how much tax is applicable in which system and which is beneficial.

Filing of tax returns for the current financial year 2022-23 will be allowed from April 1. Already the returns forms are notified. It is in this context that the IT tax calculator has been designed to increase tax awareness among tax payers. To know your applicable tax in both new and old systems, browse for the IT tax calculator at the official website of Income Tax Department - www.incometax.gov.in .

You can see 'Income Tax Calculator' in Quick Links. If you click on it, two options will appear. 1) Basic calculator. 2) Advanced Calculator. Using both, one can know how much tax is applicable. In basic calculator, you have to select Assessment Year, Taxpayer Category (like Individual, HUF, LLP), Age of Taxpayer, Residential Status etc. Enter your annual income and your total deductions. You will know directly how much tax will be charged under old and new tax regimes.

Advanced calculator is useful for more detailed calculation of tax payable. First you need to state which of the old and new tax systems you are opting for. After that select assessment year, category of taxpayer, age of taxpayer, residential status etc. You have to give the details asked by the calculator. First enter your salary income. If you have income from house (interest paid on house, income from rent), capital income, any income from other sources. Give full information in respective sections.

Details related to tax saving investments and other exemptions should be given by clicking on Provide Income Details appearing under Deduction. Deductions are not applicable under the new tax system. Therefore, there will be no possibility to enter the relevant details. In the old tax system, exemptions are found under certain sections. They can be registered directly.

Taxpayers can calculate the tax themselves using the calculator provided by the Income Tax Department from the information about their income, exemptions etc. Knowing which method is beneficial, one can choose that method and submit the returns.