Being an Individual or a HUF, you need to pay income tax on all incomes you generate during the financial year. While calculating taxes, it is important to consider various deductions, exemptions, and allowances. It is crucial that the computation should be accurate and as per the most recent income tax rules.
HivePayroll’s Income tax calculator helps you in calculating income tax payable on your income accurately. At HivePayroll, we update income tax rates and rules on regular basis and make sure that the tax computations are always up-to-date and accurate.
Step 1: Input your full name and email address
Step 2: Select the Assessment Year you want to calculate your taxes. Please note, the assessment year is always 1 year ahead of the financial year. For example, if you want to calculate taxes from April 2021 to March 2022, the financial year is 2021-2022 and the assessment year is 2022-2023
Step 3: Select your gender from the dropdown box “Male/Female” and select your age status from the “Senior Citizen” dropdown box
Step 4: Select “Yes/No” from the dropdown box “Whether opting for taxation under section 115BAC”. The selection will impact the value to be enter in the box “Income from salary”. If selected “Yes”, the tax liability will be calculated under the New Taxation Rules. If selected “No”, the tax liability will be calculated under the Old Taxation Rules
Step 4: Add your gross taxable or basic salary for the year in the section “Income from Salary”. The basic salary amount to add in this box will depend on the selection you have made in box “Whether opting for taxation under section 115BAC”. If you have selected “Yes” for section 115BAC, you need to add your Income from Salary (Basic Salary) before any Exemptions/Deductions. And, if you have selected “No” for the section 115BAC, you need to add your Income from salary (Basic Salary) after standard deduction of Rs.50000
Step 5: Section “Total Deduction” will capture values form the values you will input in the dropdown section “Show/Hide Deduction Components”. The deduction will be used or will be activated for input of value only when you have selected section 115BAC option as “No”. Taxation under section 115BAC option doesn’t allow you to claim section 80 or other deductions as per the new tax rules
Step 6: If you have selected tax calculation under old income tax rules by selecting option “No” for section 115BAC, Add all deductions you want to claim tax benefit for in the dropdown “Show/Hide Deduction Components”. Please note, each deduction has it’s own threshold, and the system will use that threshold to include the deduction in tax computation
Step 7: Click on “Calculate” button, and you will see the split of Income Tax, Surcharge and Education Cess. With this, the “Total Tax Liability” box will show you the amount of tax you need to pay based on the values you have entered in the calculator.
Please note, the calculations from this calculator are done based on the amounts and values you have provided to the calculator. This will give you a basic idea of the tax computation on your income and will never be the actual tax liability payable to the ITO. If you are an employer and you want to get accurate tax computations for your employees, subscribe our HivePayroll cloud software now.
The tax calculations provided by HivePayroll tax calculator give you a basic understanding of the Income Tax Provisions and therefore do not specifically advise you for your personal tax and investments. For accurate calculations and tax advice, contact your tax consultant. The values calculated by this calculator are an exclusive result of the values you have provided to the calculator and the recent tax laws applicable at the time of this calculation. This may change subject to changes in your circumstance or changes in the tax laws.
This interactive does not constitute an offer or solicitation for the purchase or sale of any HivePayroll products or tax advice or as an official confirmation of any transaction. ITB Group or HivePayroll or any person working directly or indirectly with ITB is not responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.
These calculations are for reference purposes only and should not be used by any individual or group or accountants for themselves or to give consulting or advice to others or for other individuals. The information should not be reproduced or passed or redistributed in any form directly or indirectly to any other person or published, copied, in whole or in part, for any purpose. The calculation done by the income tax calculator is as of the date of this report and there can be no assurance that future results or events will be consistent with the same results. This information is subject to change without any prior notice.
Neither ITB nor any of its affiliates, group companies, directors, employees, sales staff, financial consultants, or representatives shall be liable for any damages whether direct, indirect, special, or consequential including health, physical wellbeing, loss of revenue or lost profits that may arise from or in connection with the use of the Information.