How to Use an Income Tax Calculator to Estimate Annual Tax Liabilities? - Loan Trivia


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Friday 8 July 2022

How to Use an Income Tax Calculator to Estimate Annual Tax Liabilities?

Businesses and salaried individuals are required to pay income tax on a yearly basis. The Central Government levies these charges on their annual income, and the overall calculation is based on the income slab rates of that particular financial year. It increases the overall financial responsibilities of taxpayers, which is why it is necessary to calculate tax liabilities using an income tax calculator and stay updated. 

How to evaluate tax liabilities with an income tax calculator? 

To estimate your taxes, here are the steps you need to follow once you visit the online portal of the Income Tax Department.

Step 1: First, you need to enter the assessment year to calculate your taxes.

Step 2: Choose the type of taxpayer, including the gender in the income tax calculator. 

Step 3: Next, you have to select the residential status and enter the net taxable income as well. 

Step 4: After choosing the ‘Calculate’ option, you will get detailed information regarding your tax liabilities and compare the old and new slabs. 

Read Also: Income Tax Calculator Online – A Quick Introduction

Note that, while providing your taxable income, make sure to enter other information, such as rental income, interest paid on a home loan (if obtained) for both self-occupied and rented property. 

Also, save the tax receipts in a PDF format as these are used while availing credit facilities like home loans. In this regard, borrowers should also know about home loan tax exemptions, available under various sections of the Income Tax Act, 1961. This way, homebuyers can easily save a substantial amount on their loan repayment. 

Additionally Read: How to Use the Online Income Tax Calculator for AY 2022-23

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