How to calculate your income tax for FY 2022-2023

An income tax calculator is an online digital tool that helps to calculate the income tax liability for a particular financial year. However, for the current financial year, no changes have been mentioned by the Union Government. However, while calculating this financial liability, using an online tax calculator, consider knowing about the income tax liability for new and old regimes. This will help to will ease the calculations significantly and pay the correct amount. 

Steps to calculate an income tax online

The steps to calculate income tax are using an online calculator are given below – 

Step 1: Visit the official portal of income tax of India

Step 2: Select the desired assessment year

Step 3: Then, enter the type of taxpayer

Step 4: If a candidate has additional sources of income, click on ‘show details’ and fill up the required details

Step 5: Enter the ‘Profits and Gains of Business or Professions’, if applicable

Step 6: If an individual has agricultural income, they need to enter it in their required field

Step 7: Enter applicable deductions, including ‘life insurance premium paid’, ‘repayment of housing loan’ and others

Step 8: Finally, individuals have to enter their ‘Net Taxable Income’ to calculate income tax

Benefits of using an income tax calculator

The benefits of using for an online tax calculator are – 

1. It provides accurate details on income tax liability for taxpayers and helps them to pay the right tax amount. 
2. This calculator is fast and helps to save time considerably.
3. Calculating income tax manually might be challenging for most individuals. So, using an income tax calculator assists in an error-free calculation and provides the correct financial details. 
4. Finally, this calculator is free to use, and taxpayers can use it multiple times without paying any fees. 

It is important to note that beneficiaries who opted for a home loan have to pay lower income tax than those without an active loan. This is because a home loan fetches certain tax exemptions, which significantly lowers the tax liability. 

Tax benefits on a home loan 

The details about tax benefits of a home loan are provided in more information below – 

Benefit 1: Under Section 80 C

Under this section, an individual can claim a maximum home loan tax benefit of Rs.1.5 lakh on principal repayment every year. Moreover, it is essential to note that this is available on the construction and purchase of any residential property. Section 80C also offers tax exemptions on stamp duty and registration charges. 

Benefit 2: Under Section 80 EE

Section 80EE provides additional tax exemptions of Rs.50000. But, this is only applicable for residential properties below Rs.50 lakhs valuation. Also, the loan amount must not exceed Rs.35 lakhs.

Benefit 3: Under Section 24 B 

Individuals can claim a maximum tax exemption of Rs.2 lakh under this scheme. However, under section 24B, the tax exemption can only be claimed under interest payment of a home loan. 

Besides these tax benefits, leading financial institutions offer lenient home loan eligibility. This allows prospective borrowers to meet the prerequisites quickly to avail of a loan. However, one should remember that these eligibility criteria differ with every lender, and before settling for one, he/she must check these parameters thoroughly.  

Additionally, before availing of a home loan, most lenders advise using a home loan calculator to get a better financial understanding. A home loan EMI calculator provides a comprehensive idea about the financial liabilities of a prospective borrower.

Benefits of using EMI calculator 

A few benefits of using the home loan EMI calculator are – 

1. A home loan EMI calculator provides borrowers insight into the EMI beforehand, which helps in proper financial understanding before availing of a home loan. This assists in easy financial planning for them. 
2. The calculator provides an amortisation schedule that offers a detailed breakup on how payment proceeds throughout the tenor.
3. This calculator is a free tool to use and provides accurate details for prospective borrowers.     

In India, selected HFCs also offer pre-approved offers that simplify and expedite the loan application process. Such offers are available on a range of financial products like loans against property, home loans, etc. Borrowers can enter their name and contact number to check their pre-approved loan offer. 

Thus, individuals can use an online tax calculator for accurate results to calculate tax liabilities for the current financial year. Also, they can check the steps to get proper knowledge on how to use it.