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Confused about your total tax liability? Do you want to calculate the exact amount of money payable to the taxpayer? If yes, then Tax Calculator is the best tool for you. Though financial advisors and tax consultants claim to provide the right solution for tax savings in a particular year, online tax calculators have left them behind.
Calculating tax is not at all an easy task as we have to consider various elements to make accurate calculations to calculate the taxes payable to the Income Tax Department. While filing tax returns, it becomes quite essential to follow each and every step properly to ensure that each and every component is considered. Tax calculator is one of the essential things for an individual assessee as it helps him to calculate the absolute values. Do you know how you can get the most out of such a wonderful tool? Let’s evaluate.
Reasons to choose Tax Calculator
- Simple calculations:- Tax planning calculators available online in India are easy to use even for the common man. One is required to fill in the specifications, and it generates the exact amount.
- Recommendations for Investment:- There are some tax calculators in India which give suggestions for better investments. As we know that Section 80C of the Income Tax Act provides tax deduction up to Rs 1.5 lakh, tax planning tools recommend schemes through which one can avail such deduction.
- Tax planning made easy: – Tax planning in India is a haphazard task as there are several parameters that need to be taken into account. These online tax calculators make such activities easy by providing the best solutions.
Various Elements for Tax Computation
Tax calculation is complicated because of the problems involved in estimation. Thus, one needs to use the best tax calculator in India to generate an accurate value for return filing. The online tax planning calculator uses the following components to measure accurate values:
- type of assessee -The first thing that needs to be mentioned in the calculator is the type of person. Among the various classes of assessee, viz., Individual, HUF, Company, BOI, etc., it is necessary to mention to which category one falls. Further, in case of an individual, it is requested to specify his age group so that the correct slab rates can be calculated accordingly.
- residential status – Another requirement is for the assessee to specify the residential status. This is because the Income Tax Act has separate rules and requirements for resident, non-resident individuals (NRIs) and resident and ordinarily resident (RNOR).
- gross annual income Once the type and residential status of the assessee is decided, one is requested to specify the annual income on which taxes payable are to be calculated. It is the gross annual income that is earned by the assessee in a particular financial year. This is the amount on which various adjustments are made, and deductions are claimed for computing the net taxable income.
- claimed deductions – The online tax calculator also asks for deductions that are claimed under various sections of the Act, such as 80C, 80D, etc. This amount is deductible to arrive at the correct tax liability through suitable adjustments while computing net taxable income. current financial year.
Therefore, by evaluating the exact amount payable to the tax authority, one can make the best tax planning in India for any financial year. Tax calculator online is the best tool to use as there is no need to pay any amount for using it. If you are also worried about calculating your taxes, then you should start with the best tax calculator.
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