Income Tax Calculator FY 2023-24

Tax season can be a stressful time for many people, with the fear of not paying the correct amount of taxes or facing penalties and fines. However, the Income Tax Calculator can help ease some of that stress. In this article, we will explore how to use the Income Tax Calculator for FY 2023-24 to calculate your taxes accurately. With this tool, you can ensure that you are paying the right amount of taxes and avoid any unnecessary hassle. So let's get started!

Income tax is a direct tax that is levied on the income earned by individuals, businesses, and organisations. The tax is calculated based on the income earned during a financial year, which runs from 1st April to 31st March of the following year. The income tax rate varies based on the income earned, with higher tax rates applicable to higher income earners.

The taxable income is calculated by deducting the allowable deductions and exemptions from the total income. The deductions are allowed under various sections of the Income Tax Act, such as Section 80C, Section 80D, etc. The exemptions are provided for certain incomes, such as agricultural income, dividends, etc. The total income includes all the income earned by the individual, such as salary, business income, capital gains, etc.

An Online Income Tax Calculator is a tool that helps you to evaluate your taxes based on the revenue generated by you for the financial year as announced under the Union Budget. Your income tax can either be deducted from your monthly salary or you can also pay individually through the IT returns online portal maintained by the Central Board of Direct Taxes (CBDT). 

The Income Tax Calculator can be used to calculate your taxes based on your net income for the financial year. You can key in the details asked in the calculator and it will show the amount that you owe to the government.

Calculating your income tax might be quite taxing! Here are 4 easy steps to calculate your income tax easily:

Step 1: Calculating Your Gross Income

Step 2: Calculate Net Taxable Income

Step 3: Tax Slab Based on Net Taxable Income

Step 4: Calculate Taxes

Step 5: Consolidate Net Taxes

The income tax rate varies based on the income earned during the financial year. The government revises the tax slabs and rates every year in the Union budget. Here are the tax slabs under the old regime for the financial year 2023-24.

Here are the tax slabs under the new regime for the financial year 2023-24.

The recent 2023 budget has quite caused a lot of confusion amongst taxpayers. As of now in India, there are two ways to calculate income tax: you can pay tax using the old tax regime or the new tax regime. The choice totally depends on your income, age, and preferences. 

We've listed out below the income tax slab rates for individuals below 60 years, senior citizens (60-80 years), and super senior citizens (above 80 years) in both the new and old tax regimes presented in a more compact format:

Individuals (Below 60 years):

Senior Citizens (60-80 years):

Super Senior Citizens (Above 80 years):

Please note that these tax rates are applicable for the assessment year 2024-25 in India and the rates can differ based on your chosen tax regime and age group.

By using an Income Tax Calculator for filing your taxes, you save yourself from the headache of manually calculating the complicated process of tax returns. It helps you with assessing your taxable income group, tax slab rates and their deductions with ease. 

This tool does more­ than just give you correct results. It also aids in planning your finance­s wisely. Simply input the required information into an Online­ Income Tax Calculator and understand how much you can save on your taxes legally.

Still not sure whether you are eligible to file your income tax? We’ve listed below some of the key eligibility criteria for filing your income tax:

Income tax exemptions provide relief to taxpayers. It allows you to reduce your total taxable income. These exemptions are an essential aspect of the tax system, offering various avenues to legally lower one's tax liability. It is important that you explore these avenues properly to reduce your tax liability and increase your savings efficiently.

One of the best ways to reduce your income tax liability is by investing in tax-saving schemes. Here are some of the most popular tax-saving investments.

This investment plan provides tax-free returns and tax benefits under Section 80C for the long-term. The investment is subject to a lock-in period of 15 years, and the maximum amount that can be invested per year is Rs. 1.5 lakh.

Check out PPF Calculator: https://www.acko.com/calculators/ppf-calculator/

This is an investment scheme in which the majority of the funds are invested in stocks, and it provides tax advantages under Section 80C. This scheme has a lock-in period of three years, and you can invest up to Rs. 1.5 lakh per year. ELSS has the potential to offer higher returns than traditional tax-saving investments, but it also involves higher risk.

NPS is a long-term retirement investment scheme that offers tax benefits under Section 80C and Section 80CCD. The investment has a lock-in period until retirement, and you can invest up to 10% of your salary or Rs. 1.5 lakh per year, whichever is lower. NPS offers the option of choosing between equity, debt, and government securities as investment options.

Check out NPS Calculator: https://www.acko.com/calculators/nps-calculator/

ULIP is a life insurance cum investment plan that offers tax benefits under Section 80C. The investment has a lock-in period of 5 years, and you can invest up to Rs. 1.5 lakh per year. ULIPs offer the potential for higher returns than traditional insurance plans, but also involve higher risk.

Apart from tax-saving investments, there are other strategies you can use to reduce your income tax liability. Here are some of the most effective tax planning strategies.

Here are some of the most common deductions available to taxpayers.

If you have a spouse or children who have lower income than you, you can consider splitting your income with them. This can be done by giving them money or investing in their name, which can reduce your overall tax liability.

If you receive House Rent Allowance (HRA) or Leave Travel Allowance (LTA) as part of your salary, you can claim tax benefits on these allowances. You can claim HRA  for the rent paid, and LTA for the expenses incurred on travel within India.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.