A report
collected from the income tax department stated that out of India’s total
population of 130 crore, only 1.5 crore individuals pay income tax on a regular
basis. This is primarily because a majority of citizens’ earnings are
insufficient to clear the tax-free bracket, as the prevalent Income Tax slabs
in India.
Nevertheless,
data suggests that the country’s taxpayers prefer to service such liabilities
online. Apart from easier processing, such a digital method of tax payment also
eases assessment significantly. Taxpayers can even check their tax liabilities
and exact amounts using the online income tax calculator FY 2021-22.
In order to
make use of the income tax calculator the right way, it is necessary to be
aware of its components and how it helps the taxpayers. Following is a brief
overview of all of it, which individuals should consider going through.
What makes an online tax calculator a useful tool?
The income tax
calculator helps to assess your tax liability by acquiring necessary details like
investments, salary, and expenses. Having a clear idea regarding your tax
liabilities assists you to pay taxes on time and use those documents while
opting for secured loan variants like a home loan. By keeping these documents
handy, you can expect quick disbursal of your loan and a sizeable amount from
lenders.
Here is a list
of advantages of using a tax calculator:
●
Helps in
planning taxes
In Union
Budget 2020, the Ministry of Finance introduced its new tax regime apart from
the existing one. Taxpayers can choose which of these regimes they want to
follow. In this case, an income tax calculator
FY 2021-22 comes as a huge aid that enables taxpayers to plan their
taxes and choose a tax regime that maximises savings.
●
Saves time and
money
Individuals
should follow proper strategies of tax planning in order to save more money in
a legal manner. While investing a huge chunk of money in things like housing
properties, individuals generally turn towards a home loan since it offers tax
benefits on both the principal amount and interest paid. In this regard, there
are certain home loan tax exemptions and benefits every new and existing
borrower should have on their fingertips before getting into the application
process.
After the
introduction of the new tax regime, individuals were finding it difficult to
decide which one suits them better. However, the tax calculator allows you to
check income tax slab for ay 2020-21 and compare both the tax structures on
your income.
Most of the
lending institutions have made the income tax calculator available on their
website, where you can provide the necessary details to get an instant result.
Components that play a crucial role while calculating the income tax liability
are:
●
Income from different sources, for instance,
rental income or investments, etc.
●
House rent and transport allowance.
●
Total obtainable income from salary or profits
(annually).
●
Tax exemptions.
After
providing all this information while using the income tax calculator FY
2021-22, you can obtain the total tax liability. It is necessary to be aware of
the income tax slabs, tax exemptions, etc., to save money while availing a
high-value loan.
Another way to
maximise time-efficiency and savings when availing a online home loan is to opt for
pre-approved offers, which ensure a hassle-free financing. These offers are
available on a wide range of financial products, from home loans to loan
against property. Individuals can easily check their pre-approved offer by
submitting details like name and contact number.
And if you are
looking for tips to save ahead of buying your first home, consider keeping your
tax liabilities in mind and acquire information on how tax exemptions work on
home loans.
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