Put Your Tax Worries on Snooze with the Help of the Tax Calculator

Posted by Dishika Baheti on March 20th, 2018

The first week of March has already ended and as we are stepping into the second week, the tensions for computing the annual tax liabilities and filing the returns are growing graver. Apart from the common people, this month is heavily loaded for all the tax consultants, Chartered Accountants and other professionals, who provide tax related services. Hence, to ease their burden as well as to enable you to become your own guide in tax planning, the Tax Calculator has been designed which is as good as, or should it be said even better than, the human consultants.

While the entire process of computing taxes can take days or weeks, considering the quantum of accounts and documents that need to be considered and the availability of the required professional, you can very well arrange a judicious tax-saving plan with the help of the online Tax Calculator. By the end of this article, you’d have gain enough information on this mighty online tool that you’d never think of tax planning as a cumbersome job, and will instead enjoy doing it all by yourself. Let’s find out what is really intriguing about this online machine.

A Brief Intro

The Tax Calculator is an online application which is meant to help the user to make an effective tax budget, which can be fetched after feeding some basic information about your incomes and expenses and other eligible deductions. This online mega gadget is an advanced substitute of the human resource as it is capable of making complex calculations in a jiffy. If you are planning to make mutual fund investment in India where the tax system involves a lot of strict rules and formalities, then using Tax Planning calculator is a must for a fool-proof tax scheduling.

How to Use the Online Tax Calculator?

Using the Tax Calculator is simple, quick and hassle-free. There are a bunch of details that you need to feed in and you’ll have the most accurate calculation of your tax liability flashing on your computer screen. Just follow these steps to quickly get over with the entire process: -

Identify the Tax Slab that You Fall In
The Indian Taxation System is divided into various segments according to the different types of tax payers. There are different slabs for individuals, HUF businesses and corporates. Within the individual category, there is a further subdivision on the grounds of age of a person: -

• Individual of below 60 years
• Those who are 60 or above but less than 80 years old
• Those whose age is 80 years or more

Fill in the Annual Income
A person’s income is divided into five parts under the Indian Tax Laws. The categories are listed down below: -

• Profits and Gains from Business or Profession
• Salary Income
• Rental Income from House Property
• Capital Gain Income on Sale of Fixed Assets/Investments
• Other Income, e.g. Lottery Winnings, Prize Money, etc.

Also, do not forget to feed in the information of tax deducted at source on any of the above income.

Punch in the Details of Eligible Deductions
Section 80 of Income Tax Act, 1961, has a lot of provisions which are named under different sub-sections, meant for allowing deductions on some eligible expenses made by you. For instance, if you give a donation to approved charitable institutions like Narayan Sewa Sansthan, you are eligible for a deduction under section 80G to the extent allowed in the law. Similarly, expenditure towards life insurance premium, medical insurance, provident fund contribution etc. fall within the bracket of Section 80C, all eligible for deductions from the total taxable income.

Arrive at the Final Value
After you have filled in the above specified information, simply click on the ‘Process’ button and in no time, you’ll be served with the most accurate calculation of your tax liability. Please do make sure that the details filled in the Tax Calculator are to the best of their accuracy and are not in conflict with the actual expenditure. If required, take the assistance of your usual tax planner to cross-check the values inserted.

As 31st March is in close proximity, there might not be a day that goes by without worrying about the taxes. However, by using the Tax Return Calculator, you can reduce the gravity of your stress and in no time arrive at the most precise version of your tax calculations.