Calculate Income tax online using the Income tax calculator with free of cost.
What is Income Tax?
It is a tax imposed on the individuals or business entities by the Government every year or it is an annual tax levied by the federal government on the financial income earned by all of the entities respective of jurisdiction. According to income tax, if we earn higher income we should pay higher tax rates same as if we earn lower income we should pay lower tax rates.
Income tax is applicable for earned and unearned incomes. It reduces the amount individual earnings. Income tax can be paid by different categories like individuals, HUF, foreign companies, domestic companies, AOP/BOI’s, Firms, LLP and co-operative societies.
Online Income tax calculator
It is an online Income Tax calculator tool which can be used to calculate taxable income and tax liability for the assessment year. This calculator is very comprehensive and user-friendly. No need to download files to calculate income tax liability.
First, we must know the basic things about income tax. After that you can get a clear idea about income tax, and then start to calculate income tax.
Slab rates of income tax for FY 2018-19
In income tax three slab rates are followed and those are given below:
|Tax rate||Men & Women below 60years||Resident Senior citizen between 60 to 80 years||Resident super Senior citizens above 80 years|
|Basic exception||Upto 2,50,000||Upto 3,00,000||Upto 5,00,000|
|5% tax||2,50,001 to 5,00,000||3,00,001 to 5,00,000||—|
|20% tax||5,00,001 to 10,00,000||5,00,001 to 10,00,000||5,00,001 to 10,00,000|
|30% tax||Above 10,00,000||Above 10,00,000||5,00,001 to 10,00,000|
|30%||Above 10,00,000||Above 10,00,000||Above 10,00,000|
How to calculate income tax for FY 2018-19
Step 1: First we verify the income tax calculator
Step 2: After verifying the calculator, enter the details of income tax.
- First, we enter the assessment year
- Then select the category like female, male, senior citizens >60years, super senior citizens>80 years
- Enter gross taxable salary, HRA exemptions, transport allowances
Step 3: Enter details which comes under Income
- Medical insurance premium under section 80D
- Interest paid on home loan
- Education loan under section 80E
- Basic deductions under section 80C and 80CCD
- Donations to Charity under section 80G
- Surcharges(if you require)
Step 4: Then click the “calculate” button.
Free Income tax calculator Online provided here can work avoiding the errors being made during manual income tax calculation.