You can Calculate your Taxes: Income Tax Calculator


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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