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Monday, 3 February 2020

Income Tax Online Calculator for Ay 2020-21 and Financial Year 2020-21

Income Tax Online Calculator for Ay 2020-21 

FAQs on Income Tax Calculation in India

Q What is income ?

Income means the quantity that a private earns in exchange for providing goods or services.In other words, income is that the sum of all the wages, salaries, profits, interests payments, Housing rents, and other forms of earnings received for a period of time.

Income Tax Online Calculator for Ay 2020-21 and Financial Year 2019-20

For the aim of taxation, income has been categorized into five heads :

  • Income from Salary .For detail please click here
  • Income from House Property. For detail please click here .
  • Income from Profit & Gain of Business & Profession
  • Income from Capital Gain
  • Income from Other Sources
Q What is income tax ?

An tax may be a tax which is imposed on assessee depending upon the their respective income or profit. Read also: Income tax Calculator Guidline for year 2020-21

In other words, it's the tax levied on the income earned.

Q When tax is required to be paid ?

Income Tax is required to be paid when your income exceeds the essential Exemption Limit. This limit is specified by the govt per annum . Currently, thi limit is Rs. 2,50,000 for Individual below the age of 60 year.

Q what's the amount that tax is calculated?

Tax is charged on any income earned during the amount April 1- March 31. The year during which the income has been earned is understood because the ‘previous year’ and therefore the year during which the tax is calculated, is understood because the ‘assessment year’. Read also: Maa Amrutam yojna hospital list in gujarat

Q What are the advantages of tax calculation beforehand?

You should calculate Taxes beforehand in order that you're ready to put aside the funds which you'll be needing for paying taxes at the time of filing return.

Therefore, at the time of return filing, you don’t need to rush for arranging funds.The other benefit is, it allows you to know that whether your taxes will go up or down in comparison to the previous year. Read also: LIC Kanyadan yojna policy full details

Q How to calculate income tax in India?

In India,the tax is calculated on the idea of tax rates and slabs defined by Finance Ministry within the budget which is presented per annum .

What calculations are made by the calculator?

The tax calculator carries out following calculations for the Assessment Year selected by you :

Income from your Salary and Wages, House Property, Presumptive Business and Other Sources, etc.

Total Deductions available under various sections of Chapter VIA.

Taxable Income after taking under consideration income from all sources of income (viz. Salary and Wages, House Property, Capital Gains, Business and Profession, Agriculture (for Rate purpose) and Other Sources and available deductions.

Its all depend on Taxable Income at Normal Rates and Taxable Income at Special Rates.

Slab-wise Taxable Income and Income Tax
Rebate is available under Section no. 87A to tax payees having taxable income below specific limit.

Health & Education Cess, Surcharge and Marginal Relief on Surcharge
Total Tax Liability and Income Net of Tax

Who can use the Income Tax Calculator?

Any Resident Individual viz. Resident Individual aged is below 60 year, Senior Citizen, Very Senior Citizen and HUF can use the calculator for financial year 2020-21 and AY 2020-21

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