Calculation of income tax can be a daunting task for those who don’t understand the mathematics behind computation. But, for making life convenient, income tax calculator is available online, which helps in calculation just by a click. One needs to fill the required details and click on ‘Calculate’ for determining the taxes.
Additionally, it is essential to identify how one can save up some taxes to enjoy a little more. For instance, a deduction under section 80C gives an investment exemption for LIC, provident fund, etc. up to a limit of Rs. One hundred fifty thousand from the total income.
What Does Income Tax Depend on?
Income Tax depends upon the gross total income that is earned yearly. Gross total income is a sum of all the five head of incomes. The slab rates declared in the Union Budget are levied on gross total income to calculate the taxes for that particular year. The slab rates for FY 2017-18 are as under:
Income Tax Slab Rates for Individual and HUF Tax Payers below 60 Years of Age (FY 2017-2018)
| Income Tax Slabs | Tax Implied | Health and Education Cess |
| Up to Rs. 2.5 lakh per annum | No Tax | |
| From Rs. 2.5 lakh to Rs. 5 lakh per annum | 5% | 3% of Income Tax |
| From Rs. 5 lakh to Rs. 10 lakh per annum | 20% | 3% of Income Tax |
| More than Rs. 10 lakh per annum | 30% | 3% of Income Tax |
| From Rs. 50 lakh to Rs. 1 Crore | 30% | 3% of Income Tax + 10% Surcharge of Income Tax |
| More than Rs. 1 Crore | 30% | 3% of Income Tax + 15% Surcharge of Income Tax |
Income Tax Slab Rates for Individual and HUF Tax Payers above 60 Year of Age and below 80 Years of Age (FY 2017-2018)
| Income Tax Slabs | Tax Implied | Health and Education Cess |
| Up to Rs. 3 lakh per annum | No Tax | |
| From Rs. 3 lakh to Rs. 5 lakh per annum | 5% | 3% of Income Tax |
| From Rs. 5 lakh to Rs. 10 lakh per annum | 20% | 3% of Income Tax |
| More than Rs. 10 lakh per annum | 30% | 3% of Income Tax |
| From Rs. 50 lakh to Rs. 1 Crore | 30% | 3% of Income Tax + 10% Surcharge of Income Tax |
| More than Rs. 1 Crore | 30% | 3% of Income Tax + 15% Surcharge of Income Tax |
Income Tax Slab Rates for Individual and HUF Tax Payers above 80 Year of Age (FY 2017-2018)
| Income Tax Slabs | Tax Implied | Health and Education Cess |
| Up to Rs. 5 lakh per annum | No Tax | |
| From Rs. 5 lakh to Rs. 10 lakh per annum | 20% | 3% of Income Tax |
| More than Rs. 10 lakh per annum | 30% | 3% of Income Tax |
| From Rs. 50 lakh to Rs. 1 Crore | 30% | 3% of Income Tax + 10% Surcharge of Income Tax |
| More than Rs. 1 Crore | 30% | 3% of Income Tax + 15% Surcharge of Income Tax |
An amount of education and secondary education cess along with surcharge (wherever applicable) is always calculated on the income tax identified.
What is the Role of Investments in Saving Taxes?
Investments play a vital role in saving some taxes. The government provides a variety of investment opportunity under section 80C to 80U, which helps in reducing the total income and hence, avoiding taxes. For cutting down on taxes, it is a necessity to invest wisely.
Along with the investments, there are a few exemptions which can help in saving up taxes, such as House rent allowance, employees’ provident fund, etc. income tax calculator on salary helps in calculating the salary income with ease and accuracy without any headaches.
You can look for smart investment products by Bajaj Finserv to save tax, and simplify the investment process. You can also use the Income Tax Calculator to determine the taxes by filling the details asked, and ensuring easier calculations.
