Want to calculate your tax accurately? Here’s a simple guide on how to use the income tax calculator in India. Learn steps for both basic and advanced calculators, required documents, and key tax terms.
If you’re a taxpayer looking to calculate your income tax liability, it’s a good idea to use an income tax (I-T) calculator. But before diving in, there are a few essential steps you should follow to ensure accurate results.
Step-by-Step Guide to Using the Income Tax Calculator
- Enter Basic Details
Start by entering your PAN (Permanent Account Number) and your name. Next, select the assessment year and your taxpayer category—this could be Individual, HUF (Hindu Undivided Family), or a Firm. - Select Your Residential Status
Choose whether you are a Resident or Non-Resident for tax purposes. - Input Income Details
First, provide your total taxable income under the new tax regime.
Then, if you’re also calculating your tax under the old tax regime, enter the allowances and exemptions such as those under sections 10(5), 10(13A) and more. - Include Deductions Under the Old Regime
Add eligible deductions like those under Section 80C, 80D, 32(1), etc.
Once all values are entered, the calculator will compute your taxable income under the old regime as well.
Using the Advanced Income Tax Calculator
If you’re filing a more detailed return, the advanced calculator offers more features than the basic one. Here’s how it works:
- Start with Basic Information
Enter your PAN, name, and specify whether you’re filing an updated return under Section 139(8A) or a regular return. - Choose Your Tax Regime
Select whether you’re opting for the new or old tax regime, your residential status, age, and date of submission. - Provide Income Details Under Various Heads
- Salaries
- House Property
- Capital Gains
- Business or Profession
- Other Sources
Documents Needed for Salaried Individuals
If you’re a salaried taxpayer, keep the following documents ready for a smooth ITR filing process:
- Form 16: A TDS (Tax Deducted at Source) certificate issued by your employer.
- Form 26AS: A consolidated annual tax statement that includes TDS, advance tax, and self-assessment tax.
- AIS (Annual Information Statement): Gives a detailed view of your financial information, including income, transactions, and tax details.
Tip: Always double-check your entries before submitting your return to avoid any discrepancies or notices from the I-T department.
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