Calculating income tax can sometimes feel overwhelming, but the Income Tax e-Filing portal has made it easier with its Income and Tax Calculator. Whether you’re a tax expert or a first-time filer, this tool will help you get an accurate estimate of your tax liability under both the old and new tax regimes.
In this detailed step-by-step guide, we’ll walk you through every part of the tax calculation process. Plus, we’ll highlight how Filingwala.com can help you with everything from filing your returns to tax planning.
So, let’s get started!
Table of Contents
1. Prerequisites to Using the Income Tax Calculator
Before you start calculating your tax, make sure you have the following information on hand:
- Personal details like age, income, deductions, etc.
- TDS/TCS details if applicable
- Access to the e-Filing portal (Registered and unregistered users can access the calculator)
Not sure about your income details or deduction eligibility? Don’t worry! Filingwala.com can help you gather and prepare everything you need for a seamless tax filing experience.
2. Accessing the Income and Tax Calculator
Step 1: Go to the e-Filing Portal
First, visit the Income Tax e-Filing Portal and land on the homepage.
Step 2: Navigate to the Calculator
On the homepage, look for the Quick Links section. Under Quick Links, you will find an option called Income and Tax Calculator. Click on this link, and it will take you to the calculator page.
You’ll see two options—Basic Calculator and Advanced Calculator. The Basic Calculator is selected by default. You can switch between the two depending on how detailed you want your calculations to be.
3. Step-by-Step Guide: Using the Basic Calculator
The Basic Calculator is perfect for users who want quick and simple tax calculations without needing to input too many details. Here’s how you can use it:
Step 1: Select Assessment Year (AY)
- Once you’re on the Basic Calculator tab, the first step is to choose the Assessment Year for which you are calculating taxes.
- Use the dropdown menu to pick the year, for example, AY 2024-25.
Step 2: Select Taxpayer Category
- Next, choose your taxpayer category from the dropdown menu. Options include:
- Individual
- HUF (Hindu Undivided Family)
- Company
- Firm, etc.
If you’re an individual, simply select Individual.
Step 3: Enter Your Age
- Choose your age category, as this will impact your tax slab. If you are a senior citizen (60 years or older), different tax rates will apply.
Step 4: Residential Status
- Choose your residential status from the dropdown menu:
- Resident
- Non-Resident
This determines your tax liability based on where your income is earned.
Step 5: Enter Total Annual Income
- Enter your total annual income. This includes all income sources such as:
- Salary
- House property
- Business or profession
- Other sources (like savings interest)
If you’re unsure, Filingwala.com can help you gather these details accurately.
Step 6: Total Deductions
- Enter the total deductions you’re eligible for (e.g., under Section 80C for PPF, life insurance premiums, etc.).
Step 7: View Tax Summary
- Once you’ve entered all these details, click on Calculate. The tax summary will be generated and displayed based on the details you provided.
Step 8: Compare Old and New Regimes
- Click on View Comparison to see how much tax you’ll owe under both the old and new regimes. The tool automatically compares the two, allowing you to pick the one that benefits you the most.
4. Step-by-Step Guide: Using the Advanced Calculator
For those who need more specific details on their tax liability, the Advanced Calculator provides a more thorough breakdown. Here’s how to use it:
Step 1: Choose Your Tax Regime
- Start by selecting whether you want to calculate your tax under the old regime or the new regime. You can always switch later to compare.
Step 2: Input Personal Details
- As with the Basic Calculator, you need to enter the Assessment Year, Taxpayer Category, Age, and Residential Status.
Step 3: Input Income Details
Here, you’ll need to be more detailed. You’ll need to enter income under various heads:
| Income Head | Details to Enter |
|---|---|
| Salaries | Total salary income |
| House Property | Income or loss from house property |
| Capital Gains | Any capital gains from sale of property or shares |
| Business/Profession | Income from business or profession |
| Other Sources | Interest, dividends, etc. |
If you’re unsure about where to categorize your income, our team at Filingwala.com can provide professional guidance to make sure everything is accounted for.
Step 4: Enter Deduction Details
- In this section, you’ll need to input your eligible deductions:
- 80C (Investments like PPF, NSC, LIC, etc.)
- 80D (Health insurance premiums)
- 80E (Education loan interest)
These deductions will help reduce your overall tax liability.
Step 5: Enter TDS/TCS Details
- If any taxes have already been deducted at source (TDS) or collected at source (TCS), you can enter those details here to get an accurate net tax liability.
Step 6: View Taxable Income and Summary
- Once all details are entered, the calculator will display your taxable income and the tax payable. You’ll also see a breakdown of how this amount was calculated.
5. Comparing Tax Under Old and New Regimes
One of the best features of this calculator is the ability to compare your tax liability under the old and new regimes. Here’s a quick comparison:
| Old Regime | New Regime |
|---|---|
| Allows various deductions (80C, 80D) | No deductions, but lower tax rates |
| Suitable for those with investments | Ideal for those with fewer deductions |
Using the comparison tool, you can see side-by-side which regime benefits you the most based on your income and deductions.
6. Why Choose Filingwala.com for Tax Help?
Calculating your tax can be a complicated and time-consuming process, especially if you have multiple income sources or are unsure about deductions. That’s where Filingwala.com steps in. We offer:
- Expert tax advice to help you maximize deductions.
- A full-service option where we calculate and file your taxes for you.
- Consultation services to help with tax planning, savings, and compliance.
Our team of experienced CAs and tax professionals is always here to make your tax-filing journey smoother. Don’t navigate this alone—let us take care of your taxes while you focus on your business and family.
7. FAQs
Q1: Can I use the calculator without registering on the e-Filing portal?
Yes! Both registered and unregistered users can access the Income and Tax Calculator.
Q2: Is this tax calculation final?
No, this is a preliminary calculation. Your final tax liability will depend on the actual filing and any updates in tax rules.
Q3: Can Filingwala.com file my taxes for me?
Absolutely! We provide end-to-end tax services, from calculation to filing, ensuring compliance with all tax laws.
Conclusion
Tax calculation doesn’t have to be a headache! By following this step-by-step guide, you can easily calculate your taxes using the Income and Tax Calculator on the e-Filing portal. Whether you use the Basic Calculator for a quick estimate or the Advanced Calculator for a detailed breakdown, this tool will simplify your tax-filing process.
And if you’re feeling unsure or just want expert advice, the team at Filingwala.com is always here to help. From tax planning to filing, we’ve got you covered.
