Income tax surprises are not always pleasant (the good ones include refunds) and can play havoc with your budget (if you have to pay higher tax than you budgeted for). To avoid them, you should ideally use an income tax calculator to help with your tax planning. Here’s learning more about the same.
Key Aspects of Income Tax Calculators
An income tax calculator can be conveniently used online across multiple portals. It will help you calculate the tax that is payable based on the details of your income, applicable deductions, and so on. It will help you compare tax liabilities between the new and old taxation regimes as well. This will enable a better decision on which regime is beneficial for your specific financial circumstances, while you can also take a better decision in terms of budgeting accurately for tax payments.
Here are some basic aspects that you need to know while using these income tax calculators:
- Select the financial year for tax calculation
- Choose the age likewise
- Enter details like your taxable income after deduction of applicable exemptions
- Also enter details of additional income sources (rentals, interest, digital assets, etc.)
- Input applicable deduction details (if you’re applying under the old tax regime)
- Click on the relevant button for working out your tax liability
- If it’s your salary, then your income will be the basic and HRA along with allowances
- Both regimes enable standard deductions (Rs. 50,000 in the old regime and Rs. 75,000 in the new regime)
The entire process is hassle-free and will only take a few minutes of your time. An income tax calculator will thus help you avoid unpleasant surprises down the line when you actually file your taxes. Get the full picture of payable taxes and compare regimes to make a better decision and plan your finances better. For businesses operating in Saudi Arabia, seeking guidance on excise tax consultancy services in KSA can further support accurate tax planning and compliance.
New and Old Regime Taxation Rates
Here is a glimpse of the income tax rates in both the regimes.
Old Regime:
| Tax Slab | Rates |
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 – 3,00,000 | 5% |
| Rs 3,00,001 – 5,00,000 | 5% |
| Rs 5,00,000 – 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
New Regime:
| Tax Slab (FY 2024-25) | Rate |
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,001 – 7,00,000 | 5% |
| Rs 7,00,001 – 10,00,000 | 10% |
| Rs 10,00,001 – 12,00,000 | 15% |
| Rs 12,00,001 – 15,00,000 | 20% |
| Above Rs 15,00,000 | 30% |
Additional taxes are also imposed on those earning higher income, i.e. 10% surcharge if your income is more than Rs. 50 lakh and less than Rs. 1 crore. The rates are also 15% and 25% for income between Rs. 1-2 crore and Rs. 2-5 crore respectively. The highest surcharge rate of 37% applies for those earning above Rs. 5 crore annually. Know the slab rates carefully and use the income tax calculator online before planning your finances. It will help you accurately estimate your tax liabilities and avoid sudden financial jolts down the line.
