Filing income taxes can be a daunting task, especially if you are unaware of the tax slabs and exemptions applicable to you. It is common for taxpayers to miss out on certain tax benefits, leading to a higher tax liability. However, with the advent of technology and the Internet, calculating income taxes has become much easier. One such tool is the online income tax calculator.
An income tax calculator is an online tool that helps taxpayers calculate their income taxes accurately and quickly. It takes into account your income, deductions, exemptions, and tax savings, and computes your tax liability based on the prevailing tax rates. Using this tool can help you plan your finances better and make timely investments to save taxes.
Calculating Income Taxes on Housing Loans
One of the most common tax-saving investments is a housing loan. If you have taken a housing loan, then you can claim several tax benefits on it. The first is the deduction of the principal amount under Section 80C of the Income Tax Act, which allows you to claim a deduction of up to Rs 1.5 lakh. The second is the interest paid on the housing loan, which is deductible under Section 24(b) of the Income Tax Act. You can claim a deduction of up to Rs 2 lakh for interest paid on a housing loan for self-occupied property, and there is no upper limit for interest paid on a let-out property or an under-construction property.
To calculate the tax benefit on a housing loan, you need to enter the following details in the income tax calculator:
- The principal amount borrowed
- The interest rate charged
- The loan tenure
- The amount of interest paid during the financial year
Once you enter these details, the income tax calculator will compute the tax benefit on home loan you are eligible for. This ensures that you do not miss out on any tax-saving opportunities and helps you to plan your finances better.
It is an all-inclusive calculator that not only computes your income tax but also helps you plan your finances better. The income tax calculator has several features and benefits, some of which are:
- Easy to use interface: The calculator has a simple and intuitive design that makes it easy for even novice users to use.
- Multiple tax scenarios: The calculator can compute income taxes under various tax scenarios, such as salary income, rental income, capital gains, and business income.
- Accurate computation: The calculator takes into account all the relevant tax slabs, deductions, and exemptions to compute your income tax accurately.
- Tax-saving suggestions: The calculator provides suggestions on how you can save taxes by investing in tax-saving instruments such as PPF, NSC, ELSS, etc.
To use the income tax calculator, simply follow these steps:
- Go to online income tax calculator
- Enter your basic details such as your age, gender, and residential status
- Enter your income details such as your salary, rental income, capital gains, and other incomes (if any)
- Enter your deductions such as investments in PPF, NSC, ELSS, and other tax-saving instruments
- Enter your exemptions such as HRA, LTA, and other exemptions available under the Income Tax Act
- Enter your tax payments such as TDS and advance tax paid during the financial year
- Once you enter these details, the calculator will compute your income tax liability for the financial year.
It will also provide suggestions on how you can save taxes by investing in tax-saving instruments. Using the income tax calculator can help you plan your finances better and save taxes.
Calculating income taxes has become much easier with the online income tax calculator. By using this tool, you can save time, effort, and avoid errors in calculating your income tax liability. Take advantage of the income tax calculator and plan your finances better to save taxes. Also, if you have taken a housing loan, remember to claim the tax benefits available to you.