Question 1

What is an Income Tax Calculator?

Accepted Answer

An Income Tax Calculator is a tool that helps you estimate your tax liability for a financial year based on your income, deductions, and applicable tax regime.

Question 2

What is the difference between New and Old Tax Regime?

Accepted Answer

The New Tax Regime offers lower tax rates but with limited deductions, while the Old Tax Regime allows more deductions but has higher tax rates. The New Regime provides a special benefit where income up to ₹12 lakhs is tax-free.

Question 3

Which tax regime should I choose?

Accepted Answer

The choice depends on your income level and the deductions you can claim. If you have significant deductions (like home loan interest, insurance premiums, etc.), the Old Regime might be beneficial. Otherwise, the New Regime might result in lower tax.

Question 4

What is Rebate 87A?

Accepted Answer

Rebate 87A is available under the Old Tax Regime for individuals with taxable income up to ₹5 lakhs. It provides a rebate of ₹12,500, effectively making income up to ₹5 lakhs tax-free.

Question 5

How is surcharge calculated?

Accepted Answer

Surcharge is calculated on the total tax liability based on income slabs. For individuals and HUF, surcharge rates range from 10% to 37% depending on total income. Marginal relief is also applied to ensure tax doesn't exceed the excess income.

Question 6

What is Health & Education Cess?

Accepted Answer

Health & Education Cess is levied at 4% on the total tax (including surcharge). This is in addition to the income tax and surcharge.

Question 7

Can I claim deductions in New Tax Regime?

Accepted Answer

The New Tax Regime allows only limited deductions: Standard Deduction, Section 80CCD(2) (employer contribution to NPS), Section 80CCH (Agniveer Corpus Fund), and Family Pension Deduction. All other deductions are not available.

Question 8

How are capital gains taxed?

Accepted Answer

Capital gains are taxed at special rates separate from normal income. STCG on equity (Section 111A) is taxed at 15%, LTCG on equity (Section 112A) above ₹1 lakh exemption is taxed at 10%, and other capital gains have different rates based on indexation.

Question 9

Is this calculator accurate for filing?

Accepted Answer

This is an indicative calculator for estimation purposes. For actual tax filing, please consult with a tax professional or use the official Income Tax Department portal.

Question 10

What if my tax paid is more than calculated tax?

Accepted Answer

If tax paid exceeds the calculated tax liability, you will be eligible for a refund. The calculator will show the refund amount as a negative value in the net payable/refund field.

Income Tax Calculator

Basic Information

Income Sources

Deductions (Optional)

Tax Already Paid

Quick Preview

FAQ's

What is an Income Tax Calculator?

What is the difference between New and Old Tax Regime?

Which tax regime should I choose?

What is Rebate 87A?

How is surcharge calculated?

What is Health & Education Cess?

Can I claim deductions in New Tax Regime?

How are capital gains taxed?

Is this calculator accurate for filing?

What if my tax paid is more than calculated tax?

TaxBridge - Tax & Financial Services

Income Tax Calculator

Basic Information

Income Sources

Deductions (Optional)

Tax Already Paid

Quick Preview

FAQ's

What is an Income Tax Calculator?

What is the difference between New and Old Tax Regime?

Which tax regime should I choose?

What is Rebate 87A?

How is surcharge calculated?

What is Health & Education Cess?

Can I claim deductions in New Tax Regime?

How are capital gains taxed?

Is this calculator accurate for filing?

What if my tax paid is more than calculated tax?