Income Tax Calculator for FY 2020-21 – A Quick Guide to Using it
If you have been earning an income, you may have an idea about the income tax you have to pay. It depends on your taxable income limit.
Many people want to know about an approx amount payable as their income tax. But they are unable to come to an approx amount manually.
Even if they try, it may have errors.
Yes, they try calculating the exact income tax amount manually and make a mistake.
It is where using the income tax calculator online FY 2020-21 can help.
The income tax calculator online is a free tool available for use 24×7 on any third-party websites.
Using the income tax calculator, it is possible to know your approx payable income tax amount to the Government.
If you want to know how to use the income tax calculator online FY 2020-21, then this post is here to help you out! Continue reading!
How to use the income tax calculator online?
Using the income tax calculator online FY 2020-21 is easy if you are able to follow the below steps. Let’s take a look:
- The first thing is selecting your age bracket to know your income tax slab.
- The next thing is to enter your yearly salary inclusive of all your bonuses and variable aspects.
- Now, you need to enter your investment amount as per the section 80C and 80CCD – 1B.
- You also need to enter your medical insurance premium as per section 80D.
- If you live in a rented space, you will need to enter your HRA exemption.
- If you have an ongoing housing loan account, you will need to provide your interest paid. It is because a home loan interest payment amount up to Rs.1.5 lakh is eligible for a tax deduction.
- If there is an education loan, you will need to choose your total interest amount paid on it. The education loan interest payment is also entitled to the income tax deduction.
Once you fill in all these above details in the income tax calculator online FY 2020-21, you can get an easy estimate of the taxable income and payable tax.
What is an income tax calculator?
As the name suggests, the income tax calculator online FY 2020-21 or 2021-22 is an online tool. It is to help you calculate income tax.
You can use the income tax calculator online to determine your approx amount liable to be paid as an income tax.
Once you enter a few details, the tax calculator shows an estimated value of the taxable income.
Using the income tax calculator online FY 2020-21 is surely an easy way to plan your income taxes in a much better way.
What are the income tax slabs on income ranges in India?
- If your yearly salary is up to Rs.3 lakh, you don’t have to pay any taxes.
- If you are earning between Rs.3 lakh and Rs.5 lakh, a 5% amount exceeding Rs.3 lakh is paid.
- If you are taking home an amount ranging between Rs.5 lakh and Rs.10 lakh per year, 20% of the amount in excess of Rs.5 lakh has to be paid.
- For individuals earning above Rs.10 lakh/year, 30% more than Rs.10 lakh needs to be paid as income tax.
If you have invested your money in the payment of home loans, educational loans, Unit Linked Insurance Plan (ULIP), you can save on paying income taxes.
People having availed home loan can save on repayments made towards the interest and principal part up to Rs.2 lakh.
Deductions can also be enjoyed on the payment of stamp duty and registration charges.
If you have availed a home loan jointly, each of the borrowers is eligible to save.
Home loan tax benefits can only be availed if the construction of the purchased property is complete. Now that you know about the tax benefits you avail of on a home loan, you can apply for high-value funds from leading financial institutions and fulfil your dream of owning a property.
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