It is the time of filing your IT returns. The main difficulties many people will have is to find the exact amount how much they have to pay the tax. If you are working for a company and no other income, then it is easy that your employer will be deducting your tax through TDS and pay to the govt. You just need to file the IT returns after getting the Form 16 from your employer. But, if you have extra income other than salaries, then it is your responsibility to show that income and pay the tax. In that case, you have to work out and find the tax amount. It needs awareness on various sections and deductions. Some of you have accountant who will take care of calculating the tax liability. If you want to pay yourself, then online tax calculators will be more helpful in finding the tax amount.
Why we need Tax Calculators?
Lack of awareness on tax computing. Not many people know all the sections related to tax exemptions and others sources of income like income from house property, etc.
There is more chance that mistake on tax computing if you do it manually. That may cost you more if you can not find out at the initial stage.
It saves you time and unnecessary tension. It just works.
It is free source in the internet. There is no fees to use the online tax calculator.
There are plenty of online tax calculator available in the market.. For me try Free Online Tax Calculator from Paisaa.in
It has three sections as follows:
Income
In this section you have to enter all the details of your income. Before starting this section, please keep ready with all the bank statements and receipts for income and expenses. This section is further divided as follows:
· Salary Income
· Here you have to fill your total salary income. You will find these details in the form 16.
· House Property Income
· If you have own houses and letting out for the rental, then it must be shown under income from house property. Please read Income From House Property to know how to find the total income from your houses.
· Short Term Capital Gains (STCG) and Long Term Capital Gains (LTCG)
· It is another category for income. Capital Gains arise when you are selling the capital assets. There is two types of capital gains naming short term and long term. It is classified based on the time duration on selling the capital assets.
· Other Income
· Apart from the above mentioned income categories, there is many other income streams like bank deposit interests, commissions, winning from lottery, gift received from non-relatives, etc. We can not list down all the categories because the list will be huge. All these income can be put under other incomes.
Deductions under chapter VI A
This section provides option to submit all your investments for the tax exemption. It is investments and other special category applicable for the exceptions like donation,etc. The following are the list of sub-sections under this head:
· Section 80C
· Section 80c is the common section every one known. It has the maximum cap of Rs.100000 investments.
1 Investments on Section 80C
· Section 80CCC
· Deduction with respect to contribution to certain pension funds.
· Section 80CCD
· Deduction with respect to contribution to pension scheme of Central Government.
· Section 80D
· Medical Insurance Premium paid for self, spouse and two children are exempt from the tax.
1 Tax Exemption on Medical Insurance
· Section 80DD
· Deduction with respect to maintenance including medical treatment of a dependent who is a person with disability.
· Section 80E
· Exemption for interest payment on education loans.
1 Tax Exemption on Education Loan
· Section 80G
· Deduction with respect to donations to certain funds, charitable institutions, etc.
1 Exemption on Donation
· Section 80U
· Deduction in case of a person with disability.
Tax Credit
In this section you have to mention the any advance tax paid or the TDS deducted. This will be deducted from your total tax liability. It will be used only in the case of advance tax payment. Otherwise leave this section empty and submit the details.
