Home > Income Tax > Help Center > Income Tax CalculatorLast Updated: Feb 02nd 2023

Income Tax Calculator

Income Tax Calculator to know the taxes to be paid for a given Income and to compare Old vs New tax regimes (scheme) for IT declaration with your employer or to know your tax exposure
IT Calculator (Old vs New Tax Regime)
Financial Year   
Updated with new Budget 2023 income tax rules.  
Age
Status      
Tax Payer
Does above income contains Salary ?
(* per Budget 2023)
Get Help from Income Tax Help Center from EZTax.in

Frequently asked Questions

1.What is covered in Income Tax Calculator ?

Calculate income tax for an individual or HUF based on the given total income and deductions. Applicable for last three years, FY 2023-24, FY 2022-21, FY 2020-21. Use for Tax Computation, IT or Investment Declaration with your employer. Updated with latest tax rates from Budget 2022

Calculator provides comparison between Old and New Tax regimes / laws for FY 2022-23, useful to know income tax amount to be paid, to provide IT declaration to your employer.

This Calculator considers financial year, age group such as Normal, Senior, Super Senior citizens, residential status such as Resident or NRI, Tax payer status such as Individual or HUF, and most important factor of net taxable income and the result will give you Net Tax, rebate, cess, and other information. Once calculated, one can take a print of the result for further use.

Budget for FY 2020-21 announced on Feb 1st 2020 introduced a new IT Regime where lower tax rates applicable for those who forego exemptions, deductions, & reliefs

New   Budget 2023 announced on Feb 1st 2023 introduced new tax slabs for new IT Regime to make it attractive.

Refer Difference between Old Tax Regime and New Tax Regime

Also refer Old vs New Tax Regime | Explained for Salaried & Business Tax Payers

2.How to Save on Tax ?

Recent statistics on the efiled ITRs show that there is a plenty of room to improve majority of the income tax profiles. It's staggering 70% of all the ITRs filed could save on tax if the taxpayer takes little time to analyse and invest. Below are most common ways to save on taxes

  • Tax Saving Investments under 80C
  • Health Insurance (80D)
  • Savings Interest (80TTA)
  • Savings Interest (80TTB)
  • Interest on Education Loan (80E)
  • Royalty Income on Authors (80QQB)
  • House Rent paid by Self-employed or Salary with no HRA (80GG)
  • Donations (80G)
  • Donations (80GGA)
  • Donations (80GGC)
  • Interest on Home Loan (24b)
  • Royalty Income on Patents (80RRB)
  • Interest paid on Housing Loan (80EEA)
  • Interest paid on Electric Vehicle Loan (80EEB)
  • Deduction in respect of maintenance including medical treatment of a dependent disabled (80DD & 80U)
  • Treatment of specified diseases (80DDB)

Refer tax saving options and the potential return on investments to know more.

To set a personal budget and validate the best practices refer Personal Budget Calculator

OR take the expert tax consultation to have our team analyse and guide you

3.Who is supposed to pay Income Tax ?

Any Individual or group of Individual or artificial bodies (AOB) who have earned income are required to pay Income tax on it. The IT Act recognizes the earners of income under eight categories.

  1. Individuals
  2. Hindu Undivided Family [HUF]
  3. Association of Persons [AOP]
  4. Body of individuals [BOI]
  5. Firms
  6. Companies
  7. Local Authority
  8. Artificial Juridical Person
4.Who should file their taxes ?

Any person whether they are resident or non-resident, whose income in India exceeds Rs. 2,50,000 during financial year ending 31st March is required to file their income tax return in India.

For a more customised , perfect answer, refer below calculator to know who should file taxes in India.

Are you Confused? Want to know who should file income tax return in India ?
  Who should file ITR?
5.Is Income tax Act applicable only to residents ?

The Income tax Act applies to all persons (resident or non-resident) who earn income in India in a given financial year. An individual stays in India for 182 days or more in a financial year is treated as resident in that financial year regardless of his citizenship. An Individual who stay in India for less than 182 days is treated as non-resident. Check more @ NRI Tax Help Center for latest.

6.How should I file my taxes ?

IT Filing made easy and quicker. Below is a list of steps in filing the taxes with EZTax.in It's as simple as

  1. Collect the information - For the most, you need PAN number, and income details. We no longer need Form 16 for most cases.
  2. Sign Up & Sign In - Once Signed up, activated, select the self service for a financial year.
  3. Add Client - before preparing the taxes, add your PAN to EZTax.in by authorising using OTP
  4. Import / Fill - Use Get Data Screen to import all the data from IT Department using OTP OR manually Upload Form-16, Form 26AS & Fill the questionnaires.
  5. Review / Revise - Review to your satisfaction and Revise if needed.
  6. Self Service IT Filing is Free, hence no need to pay or provide your debit or credit card.
  7. Audit Check & e-File - For peace of mind, go thru alerts, recommendations from EZ Audit Checker. File!

7.When should I file my taxes ?

The due date for filing income tax return for individuals is July 31st.

In case you haven’t filed your return before Jul 31st, you still can file your return with EZTax through self-service or assisted service but need file as belated tax return before the Dec 31st of the assessment year.

Briefly, belated returns may attract few penalties / restrictions.

  1. Penalties under Sections 234F.
  2. Interest on due amount of Tax under Sections 234A.
  3. Revision of a belated return is not allowed.
  4. Tax Refund without any interest from IT Department.
  5. Restriction in not allowing losses to set-off against future income.

8.What will happen if I file a belated tax return ?

While there are genuine cases where one may need to file their taxes late, one should understand the how Income Tax Department may treat such return ? Belated return is a tax return submitted after the due date Jul 31st but before Dec 31st. Briefly, belated returns may attract few penalties / restrictions.

  1. Penalties under Sections 234F.
  2. Interest on due amount of Tax under Sections 234A.
  3. Revision of a belated return is not allowed.
  4. Tax Refund without any interest from IT Department.
  5. Restriction in not allowing losses to set-off against future income.

9.Can I revise a belated tax return, if I made a mistake ?

Yes, you can revise a belated return before Mar 31st of the corresponding Assessment Year.

10.What is the period for which a person’s income is to be considered for Income tax return ?

Income earned during twelve months between 1st April to 31st March of an year, commonly called as Financial Year (FY), is taken into account for purposes of calculating Income Tax. Income earned in the financial year is assessed (evaluated, calculated) in the next Financial year which is called as the Assessment Year (AY). A person files his return during an Assessment Year for the income earned in the Financial Year.

For example, income earned in Financial Year (FY) 2021-22 to be filed during the Assessment year (AY) is 2022-23.

11.What is the Income for the purpose of Income tax return ?

The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Under the Act, all incomes earned by persons are classified under 5 income heads, such as:

  1. Income from Salary: Income can be charged under this head only if there is an employer-employee relationship between the payer and payee. Salary includes basic salary or wages, any annuity, gratuity, advance of salary, leave encashment, commission, perquisites in lieu of or in addition to salary and retirement benefits. The aggregate of the above incomes, after exemptions available, is known as Gross Salary and this is charged under the head income from salary.
  2. Income from House property: Any residential or commercial property that you own will be taxed. Even if your piece of real estate is not let out, it will be considered earning rental income and you will need to pay tax on it. If you have home loan then interest part of it would also be considered as negative income from House property..
  3. Income from Business or Profession: Income earned through your profession or business is charged under the head ‘profits and gains of business or profession.’ The income chargeable to tax is the difference between the credits received on running the business and expenses incurred.
  4. Income from capital gains: Any profit or gain arising from transfer of capital asset held as investments(such as house, jewellery, are chargeable to tax under the head capital gains. The gain can be on account or short- and long-term gains.
  5. Income from other sources: Any income that does not fall under any of the four heads of income above is taxed under the head income from other sources. Example is interest income from bank deposits, winning from lottery, any sum of money exceeding Rs 50,000 received from a person (other than from relative, on marriage, under a will or inheritance).

12.Can I include business losses from previous years ?

Yes, as long as the business loss is declared part of the previous year’s tax return and the return filed before the due date of income tax filing.

13.What is Gross Total Income ?

Gross Total Income (GTI, in short), is the aggregate taxable income under the different heads of income such as income from salary, income from house property, income from profits or gains of business, capital gains, and income from other sources. i.e., the total income computed in accordance with the provisions of the IT Act before making any deductions under Sec 80 C to 80 U.

14.What is Permanent Account Number ?

PAN is a ten-digit unique alphanumeric number issued by the Income-tax Department. PAN is issued in the form of a laminated plastic card (commonly known as PAN card).

15.What is the relevance of TAN in Income Tax Filing ?

As per section 203A of the Income-tax Act, 1961, every person who deducts or collects tax at source has to apply for the allotment of TAN. Section 203A also makes it mandatory to quote TAN in following documents:

  1. TDS statements i.e. return.
  2. TCS statements i.e. return.
  3. Annual Information Return.
  4. Challans for payment of TDS/TCS.
  5. TDS/TCS certificates.
  6. Other documents as may be prescribed.
16.Who allots TAN ?

TAN is allotted by the Income-tax Department on the basis of the application submitted online at NSDL-TIN website or offline to TIN-FC managed by NSDL. NSDL will intimate TAN to the applicant at the address specified in the application

17.What is the procedure to obtain TAN ?

There are two modes for applying for TAN:

  1. Online mode and
  2. Offline mode

They are as follows:

OFFLINE: An application for allotment of TAN is to be filed in Form 49B in duplicate and submitted to any TIN-FC. Addresses of TIN-FCs are available at NSDL-TIN website (https://www.tin-nsdl.com). In case of an applicant, being a company which has not been registered under the Companies Act, 2013, the application for allotment of Tax Deduction Account Number may be made in Form No. INC-7 specified under sub-section (1) of section 7 of the said Act for incorporation of the company.

ONLINE: Online application for TAN can be made from the website of NSDL-TIN website.

18.What is Residential Status with respect to tax filing ?

Income tax is charged on total income earned by an Assessee during the previous year, but at the rate applicable to the assessment year. It shall be determined on the basis of the residential status of the Assessee. Sec.6 of the act divides the Assessee into 3 categories. Find your Tax Residential Status using Tax Residential Status Calculator

  1. Resident
  2. Resident but Non-Resident (ROR)
  3. Resident but Not Ordinary Resident (RNOR)

There is basic and additional condition for determining the residential status of different assessee. Comprehensive Knowledge available @ NRI Tax Help Center


Basic condition:

  1. If he has been India in that previous year for a period or periods amounting in all to 182 days or more.
  2. if he has been India for a period or periods amounting in all to 365 days or more, during the 4 years preceding the relevant previous year and has been in India for a period or periods amounting in all to 60 days or more in that previous year.

Additional conditions:

  1. An individual who has been in India at least 2 out of 10 previous years preceding the relevant previous year.
  2. The individual has been India for at least 730 days in all during the 7 previous year preceding the relevant previous year.
    1. Resident but ordinary resident Persons who are resident in India is popularly known as ordinary resident. An individual, to become an ordinary resident in India in any previous year should also satisfy the two additional conditions along with basic conditions.
    2. Resident but Not ordinarily resident individual If an individual fulfills any one of the basic conditions (specified in the case of resident) but doesn’t satisfy both additional conditions, he becomes a ‘not ordinary resident’.
    3. Non-resident individual As per section 2(30) of the income tax act, if an assessee doesn’t fulfill any of the two basic conditions or tests will be treated as non-resident assessee during the relevant previous year.
19.What are the information / documents needed before filing ?

While it depends on the nature of income you received, there are few must have information / documents and other good to have documents.

Must have:

  1. PAN Number.
  2. Mobile to get OTP from IT Department
  3. Bank Account Information.

Should have if certain financial events:

  1. For a salaried employee, Salary related information or Form-16.
  2. Home loan statement / information.
  3. Investment details such as LIC, PPF, NSC etc.
  4. Interest income from your savings account.
  5. House Rent Information.

For some, the below may be required:

  1. Capital Gains statement.
  2. Other sources of Income details.
  3. Deduction related documents.

Refer Self Service Income Tax Filing Service to know how to file your taxes by yourself ?

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