Income Tax Calculator: Calculate Your Income Tax Online for FY 2023-24

Guide to use income tax calculator

With an income tax calculator, one can calculate income as well as tax liability without any hassle. The Paybima income tax calculator 2022-23 enable users to figure out tax on their income in an instant by following the given below steps:

First step is to offer basic details: In this step, the taxpayer is required to submit essential information like age of the taxpayer, yearly income, rent paid (in case of rented accommodation), type of accommodation/house (if it is your own house) etc.
Income details: In the next step, the individual is required to submit their income details like gross salary, basic salary, income earned from any other sources like rental income etc.
Consider the tax exemptions: Now, you can include exemptions that you can avail like HRA, special allowances, EPF contribution, any other exemptions etc.

Enlist the capital gains earned: Whatever capital gains you have earned through different investments in the particular financial year should also be listed out, such as, equity and debt investments, shares etc.
Calculate the deductions: Calculate and add investments available for deduction like term insurance premiums, ELSS, NPS, charity donations and other deductions under section 80C, 80D, 80G etc.

Once you submit all the above information, you can press the ‘continue’ button to see your overall taxable income and the total tax that you need to pay.

Tax slabs: Old tax regime v/s New tax regime

Income tax slab - FY 2022-23 (old v/s new regime)

Income Tax Slab	Tax Rates as per Old Tax Regime	Tax Rates as per New Tax Regime
Up to INR 2,50,000	Tax Rates as per Old Tax Regime Nil	General InsuranceNil
INR 2,50,001 to INR 5,00,000	Tax Rates as per Old Tax Regime5%	Tax Rates as per New Tax Regime5%
INR 5,00,001 to INR 7,50,000	Tax Rates as per Old Tax RegimeINR 12,500 + 20% of total income exceeding INR 5,00,000	Tax Rates as per New Tax RegimeINR 12,500 + 10% of total income exceeding INR 5,00,000
INR 7,50,001 to INR 10,00,000	Tax Rates as per Old Tax RegimeINR 62,500 + 20% of total income exceeding INR 7,50,000	Tax Rates as per New Tax RegimeINR 37,500 + 15% of total income exceeding INR 7,50,000
INR 10,00,001 to INR 12,50,000	Tax Rates as per Old Tax RegimeINR 1,12,500 + 30% of total income exceeding INR 10,00,000	Tax Rates as per New Tax RegimeINR 75,000 + 20% of total income exceeding INR 10,00,000
INR 12,50,001 to INR 15,00,000	Tax Rates as per Old Tax RegimeINR 1,12,500 + 30% of total income exceeding INR 10,00,000	Tax Rates as per New Tax RegimeINR 1,25,000 + 25% of total income exceeding INR 12,50,000
Above INR 15,00,000	Tax Rates as per Old Tax RegimeINR 2,62,500 + 30% of total income exceeding INR 15,00,000	Tax Rates as per New Tax RegimeINR 1,87,500 + 30% of total income exceeding INR 15,00,000

Income tax calculations - How to calculate tax on income

In India, income tax is calculated as per the prescribed rates defined by the Ministry of Finance, Government of India announced during the time of Union Budget. To estimate the income tax liability, one can use the income tax calculator online.

An income tax calculator can also be used to compare and calculate the income tax amount that you need to pay under the old v/s the new tax regime. This helps in choosing the best tax regime to pay tax.

Below are the steps to calculate income tax as per the old tax regime:

First, compute your gross taxable earnings
For that you need to calculate your net salary by subtracting deductions, such as HRA, LTA and standard deduction of INR 50,000 under section 16 from your gross salary. For example, Gross taxable income = Gross salary – HRA – LTA – Standard deduction + Income from other sources
Now, calculate the total tax benefits you can earn on your income
For instance, Total tax benefits = Investments under 80C+ Health insurance premium under section 80D + savings account interest + home loan interest + benefit under section 80CCD (1B) + other benefits under section 80G, 80E etc.
Now, evaluate your total tax liability using online tax calculator tool
Let’s take an example to understand the scenario better as per the old v/s new tax regime using INR 14,50,000 as the total income of an individual from all sources for a financial year.

Old regime - age group below 60 years

Old Regime
Details	FY 22-23
Gross Total Income	INR 14,50,000
Total Deduction	INR 2,77,500
Taxable Income	INR 11,72,500
Tax on Total Income	INR 1,64,250
Surcharge	Nil
Health & Education Cess	INR 6,570
Total Tax Payable	INR 1,70,820

New Regime
Details	FY 22-23
Gross Total Income	INR 14,50,000
Total Deduction	Nil
Taxable Income	INR 14,50,000
Tax on Total Income	INR 1,75,000
Surcharge	Nil
Health & Education Cess	INR 7,000
Total Tax Payable	INR 1,82,000

Old regime - age group 80 years and above

Old Regime
Details	FY 22-23
Gross Total Income	INR 14,50,000
Total Deduction	INR 2,77,500
Taxable Income	INR 11,72,500
Tax on Total Income	INR 1,51,750
Surcharge	Nil
Health & Education Cess	INR 6,070
Total Tax Payable	INR 1,57,820

New Regime
Details	FY 22-23
Gross Total Income	INR 14,50,000
Total Deduction	Nil
Taxable Income	INR 14,50,000
Tax on Total Income	INR 1,75,000
Surcharge	Nil
Health & Education Cess	INR 7,000
Total Tax Payable	INR 1,82,000

Note - In the above lists, the deductions for income tax were assumed under the old regime. However, if an individual opts for the new regime, none of these deductions are applicable

Advantages of filing online income tax

An individual whose income is more than the minimum tax exemption limit has to file for ITR or Income Tax Return. Unlike earlier, these days you get the option of filing ITR online. Online income tax filing offers many advantages as mentioned below:

Online process of income tax filing is quick and easy as it allow convenience to the taxpayer
Similarly, in case of refunds, the online filing of tax allow the taxpayer to receive refunds quickly
Further, quick confirmations regarding filing and other updates can also be seen on your ITR status
The online tax filing is totally safe and secure
ITR work as address and income proof for the taxpayer. This paper helps at the time of applying for loans, insurance, visas etc.
Finally, online ITR filing allow the taxpayer to avoid penalty since the taxpayer does the task ahead of the last date

Eligibility requirements for filing income tax

In India, below people are regarded as eligible to file returns on income tax:

Resident citizens
Hindu Undivided Family (HUF)
Body of Individuals (BoI)
Associations of Persons (AoP)
Local authorities
Companies
Corporate firms
Charitable and Religious Trusts
Artificial Juridical Persons etc.

Exemptions from Income Tax for Salaried People

Salaried individuals can enjoy the below income tax exemptions under the old tax regime:

HRA or House Rent Allowance
Regular deductions of INR 50,000
LTA or Leave Travel Allowances
Expenses related to work like telephone bills
Deductions such as:
- Under sections 80C like life insurance premium, ELSS, etc
- Under section 80CCD(1) for contributions to NPS
- Section 80E for education loan repayment
- Section 80D for premiums paid for health insurance
- Sections 24B, 80EEE or 80EEA (loan repayment/home loan related)
- Section 80TTA for the interest accumulated on savings accounts
- Section 80G for donations/contributions to charitable trusts

Frequently asked questions

For salaried employees, income from the salary is the sum of basic salary + HRA + Special Allowance + Transport Allowance + any other allowance etc. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. To estimate income tax you must include income from all sources.

Income tax is calculated as the product of a tax rate multiplied by the amount of taxable income. Taxation rate varies depending on the taxpayer and his/her income.

No, you are not required to file income tax returns if your income is below the basic exemption limit. If a person has annual income which is less than Rs 2.5 lakh, he/she can still claim an income tax refund by filing an ITR. Further, if the income is above the basic exemption limit, it is mandatory for a person to file income tax returns.

For e-filing of the income tax returns, you need the below details:

Aadhar Card details, current address, PAN Card number
Details of bank accounts you hold at present in the current financial year
Proof of income such as salary details and any other sources of income such as investments in FDs, savings accounts etc.
Deductions claimed under various income tax sections
Tax payment details like TDS etc.

The amounts that come under your exemptions are part of your income where income tax is not imposed. For example, an LTA amount can be an exemption. So, money under tax exemptions fall within particular schemes which does not get added to your taxable income.

Tax deductions, on the other hand, are amounts of certain schemes that are deducted from your taxable income. For example, investments done to reduce tax burden like ELSS, NPS, Life Insurance premiums etc. fall under deductions.

The only difference between the new and the old tax regime is that while computing your tax liability under the new tax regime, you cannot avail any deductions/exemptions as applicable under the old tax slabs.

No, the income tax calculator does not compute the Tax Deducted at Source (TDS). However, it calculates your tax liability for the assessment year.

Depending on the particular tax slab as per your salary, your tax rate is decided. It also depends on the particular tax regime you choose to pay your tax - new or old tax regime.