INCOME TAX CALCULATOR 2021 FOR FY 2021-22
INCOME TAX CALCULATOR 2021- ESTIMATE YOUR INCOME TAX LIABILITY
Estimation of your Income Tax liability in simple steps explained on this page
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READ OUR ARTICLE " TDS ON SALARY , PENSION AND PERQUISITES "
The Article on " TAX PLANNING FOR FY 2021-22 CONTAINS 5 PARTS
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2021-22 CLICK HERE
PART 2 : TAX RATES/SLABS FOR FY 2021-22 CLICK HERE
PART 3 : TAX REBATES FOR FY 2021-22 CLICK HERE
PART 4 : CALCULATE YOUR INCOME TAX/ADVANCE TAX FOR FY 2021-22
: READ THIS PART BELOW
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
READ OUR ARTICLE " TDS ON SALARY , PENSION AND PERQUISITES "
The Article on " TAX PLANNING FOR FY 2021-22 CONTAINS 5 PARTS
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2021-22 CLICK HERE
PART 2 : TAX RATES/SLABS FOR FY 2021-22 CLICK HERE
PART 3 : TAX REBATES FOR FY 2021-22 CLICK HERE
PART 4 : CALCULATE YOUR INCOME TAX/ADVANCE TAX FOR FY 2021-22
: READ THIS PART BELOW
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
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OLD TAX REGIME VS NEW TAX REGIME
OLD IS GOLD , IF EXEMPTIONS EXCEED RS 2.5 LAKHS
Dated 23.01.2021 : Whatever may be your age & whatever may be your income , you will pay lesser income tax in the FY 2021-22 with the old tax structure compared with the New simplified tax Regime brought by our FM , IF YOUR EXEMPTIONS WHICH ARE SCRAPPED IN THE NEW REGIME ARE MORE THAN RS 2,50,000 .
The exemptions that you may have include standard deduction , 80TTA , 80 TTB , 80C , 80D , 80EE , 80EEA etc .
Further as your exemptions go on increasing above Rs 2.00 lakhs , the additional tax payment you have to make in the new regime will go on increasing . Suppose you have annual income of Rs 25 lakhs and your present exemptions are 10 lakhs , you may have to pay additional tax of Rs 2,34,000 .
However we suggest you compare yourself your tax liability in both the regimes and decide which regime is good for you .
Dated 23.01.2021 : Whatever may be your age & whatever may be your income , you will pay lesser income tax in the FY 2021-22 with the old tax structure compared with the New simplified tax Regime brought by our FM , IF YOUR EXEMPTIONS WHICH ARE SCRAPPED IN THE NEW REGIME ARE MORE THAN RS 2,50,000 .
The exemptions that you may have include standard deduction , 80TTA , 80 TTB , 80C , 80D , 80EE , 80EEA etc .
Further as your exemptions go on increasing above Rs 2.00 lakhs , the additional tax payment you have to make in the new regime will go on increasing . Suppose you have annual income of Rs 25 lakhs and your present exemptions are 10 lakhs , you may have to pay additional tax of Rs 2,34,000 .
However we suggest you compare yourself your tax liability in both the regimes and decide which regime is good for you .
IT'S TIME TO ASSESS YOUR TAX AND TAKE CORRECTIVE ACTIONS :
Dated 28.12.2021 : As we are coming to the end of December , it's time to assess our tax liability for the current year ending March 2022 . By now , most of us have the likely annual income we have , tax saving instruments we have invested in . Hence based on our estimates , we can calculate our tax liability for the current year . We may also look in to any more space available for tax savings instruments we can purchase to minimize our liability .
You may go through the article below and calculate your tax liability and corrective action in the next three months
Dated 28.12.2021 : As we are coming to the end of December , it's time to assess our tax liability for the current year ending March 2022 . By now , most of us have the likely annual income we have , tax saving instruments we have invested in . Hence based on our estimates , we can calculate our tax liability for the current year . We may also look in to any more space available for tax savings instruments we can purchase to minimize our liability .
You may go through the article below and calculate your tax liability and corrective action in the next three months
If your Taxable Income is One Rupee more than threshold of Rs 5,00,000,you may have to pay a Income tax of Rs 13,000(Inclusive of Cess ) .Hence estimate your income and Income tax now and utilize rebates and deductions available in the remaining period of the year to bring your taxable Income to less than Rupees Five lakhs .By planning now ,you may avoid last minute surprises .
PLAN N PROGRESS
TAX CALCULATOR 2021 -
ESTIMATE YOUR INCOME AND TAX LIABILITY
( TAX CALCULATOR FOR AY 2022-23 ( FY 2021-22 )
BEFORE GOING TO THE TAX CALCULATOR :
1. Estimate your expected total income including salary, interest or any other income for the current year April 2021 to March 2022. Please note that interest on Fixed Deposits / Recurring Deposits is to be included . Also Note the dividends received by you are also to be included in your annual income from FY 20-21 onward .
2. Take stock of payments like Provident Fund paid payable by your employer , Insurance Premium you have paid or any other instrument you have purchased or to be purchased which is eligible for Tax concession under old tax regime .Collect the details of Housing loan and education loan installments to be paid during the year and interest paid/payable for them for the year .
1. Estimate your expected total income including salary, interest or any other income for the current year April 2021 to March 2022. Please note that interest on Fixed Deposits / Recurring Deposits is to be included . Also Note the dividends received by you are also to be included in your annual income from FY 20-21 onward .
2. Take stock of payments like Provident Fund paid payable by your employer , Insurance Premium you have paid or any other instrument you have purchased or to be purchased which is eligible for Tax concession under old tax regime .Collect the details of Housing loan and education loan installments to be paid during the year and interest paid/payable for them for the year .
CALCULATE THE INCOME TAX EASILY
3. Go to Income Tax Department, Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the current year .
For the Fy 2021-22 , just like in fy 2020-21 , you have option pay income tax under two regimes
1. Under new simplified tax regime using newly introduced section 115bac of IT act which has lower rates , but without many tax rebates
2. Using old tax regime which was available in Fy 2019-20 with same tax rates and same tax rebates .
You can decide which one to use at the time of submission of IT Returns for FY 2021-22 , BUT YOU HAVE TO GIVE YOUR CHOICE OF OPTION ( which can be changed later ) to your employer if you are salaried persons or pensioners .
You can calculate Income tax liability under both regimes below and find which is beneficial .
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the current year .
For the Fy 2021-22 , just like in fy 2020-21 , you have option pay income tax under two regimes
1. Under new simplified tax regime using newly introduced section 115bac of IT act which has lower rates , but without many tax rebates
2. Using old tax regime which was available in Fy 2019-20 with same tax rates and same tax rebates .
You can decide which one to use at the time of submission of IT Returns for FY 2021-22 , BUT YOU HAVE TO GIVE YOUR CHOICE OF OPTION ( which can be changed later ) to your employer if you are salaried persons or pensioners .
You can calculate Income tax liability under both regimes below and find which is beneficial .
SOME SIMPLE THUMB RULES FOR SELECTION BETWEEN OLD AND NEW TAX REGIMES :
1. If your total gross income is less than Rs 5 lakhs , your income tax liability is nil in both regimes .
2. If you have total tax rebates of Rs 2.50 lakhs or more , old tax regime is better than new regime for any amount of gross income
3. If you have tax rebates of Rs 2.00 lakhs or more , old regime is better for gross income up to Rs 11.00 lakhs .
However you better check yourself and know which is better
1. If your total gross income is less than Rs 5 lakhs , your income tax liability is nil in both regimes .
2. If you have total tax rebates of Rs 2.50 lakhs or more , old tax regime is better than new regime for any amount of gross income
3. If you have tax rebates of Rs 2.00 lakhs or more , old regime is better for gross income up to Rs 11.00 lakhs .
However you better check yourself and know which is better
HOW TO CALCULATE WHICH IS BETTER FOR YOU : OLD OR NEW ?
TAX CALCULATION UNDER NEW REGIME
1. Go to Income Tax Department,Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the current year
2. Select Assessment Year 2022-23
3. Whether you want to opt for taxation under 115BAC ; Select YES
( Complete the total exercise once with YES )
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary / pension without ANY DEDUCTION
6. Enter other income like Interest
Now you will total Total Taxable income and your Tax liability under the new regime . Note down the tax liability under the new regime .
TAX CALCULATION UNDER OLD REGIME
7. Now go back to the question : Whether you want to opt for taxation under 115BAC ; Select NO
8. Now Enter your expected salary / pension after Standard Deduction of Rs 50,000 .
9. Enter other income like Interest
10 . Enter all your eligible deductions like life insurance premium paid / payable , housing loan interest , education loan interest , Medical insurance , interest received from bank under section 80TTA / 80 TTB .
( To opt for the old regime , one has to know the various rebates available and it is the same as in FY 2019-20 . To know all rebates / deductions available , CLICK HERE
Now you will get Total Taxable Income under old regime and Tax Payable under old regime .
COMPARE :
Now compare the tax amount between Old regime and New regime and decide whether to opt for old regime or new regime .
You can then intimate your employer your choice . If your employer allows you to file your option on-line , do so . Remember the once you intimate the option to your employer , it cannot be revoked . But you may select a new option while filing IT Returns .
If you opt for old regime , you have to inform your employer the details of the investments made in tax saving instruments also . Otherwise TDS will be more than the TDS under new regime .
TAX CALCULATION UNDER NEW REGIME
1. Go to Income Tax Department,Govt of India website
http://www.incometaxindia.gov.in/Pages/tools/income-tax-calculator-234ABC.aspx
and calculate the estimated income tax liability for the current year
2. Select Assessment Year 2022-23
3. Whether you want to opt for taxation under 115BAC ; Select YES
( Complete the total exercise once with YES )
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary / pension without ANY DEDUCTION
6. Enter other income like Interest
Now you will total Total Taxable income and your Tax liability under the new regime . Note down the tax liability under the new regime .
TAX CALCULATION UNDER OLD REGIME
7. Now go back to the question : Whether you want to opt for taxation under 115BAC ; Select NO
8. Now Enter your expected salary / pension after Standard Deduction of Rs 50,000 .
9. Enter other income like Interest
10 . Enter all your eligible deductions like life insurance premium paid / payable , housing loan interest , education loan interest , Medical insurance , interest received from bank under section 80TTA / 80 TTB .
( To opt for the old regime , one has to know the various rebates available and it is the same as in FY 2019-20 . To know all rebates / deductions available , CLICK HERE
Now you will get Total Taxable Income under old regime and Tax Payable under old regime .
COMPARE :
Now compare the tax amount between Old regime and New regime and decide whether to opt for old regime or new regime .
You can then intimate your employer your choice . If your employer allows you to file your option on-line , do so . Remember the once you intimate the option to your employer , it cannot be revoked . But you may select a new option while filing IT Returns .
If you opt for old regime , you have to inform your employer the details of the investments made in tax saving instruments also . Otherwise TDS will be more than the TDS under new regime .
4. For tax rates and various concessions available under various sections of Income Tax act , CLICK HERE . Verify whether you can utilize any of the concessions and the amount you can invest to avail maximum concession under the each section .
5. While purchasing insurance policy or any other financial instrument like pension plan, mutual fund etc. discuss with the financial advisors / consultants / agents etc who are selling the product regarding the tax concessions available specifically for the instrument in question and reconfirm by going to the website of the issuer .Some advisors/consultants who have their interest in selling these products may mis-inform you about the concessions available .
6. Verify such concessions are useful to your tax plan and you can make use of such concession for the present year .
7. Beware of the instruments like unit linked policies , ELSS etc which are linked to market performance . Such instruments will perform only when stock markets. perform . Some times long terms returns are shown with illustrative rates which may look lucrative . Please remember that those rates are only illustrative and the such returns may become illusive if Net Asset Value ( NAV ) does not grow and if sellers do not guarantee the return . Know the risks of investing in such high risk products .
8. If instruments warrant repetitive payments say monthly or annually , please check your financial position with regard to affordability of the product for you for long term .
9. After making all the payments and investments and after getting the total income correctly calculated , you can go again to income tax Dept site and arrive final tax liability .
10. If you are eligible to submit form 15H or 15G to the banks , do it well in time , preferably at the beginning of the financial year or immediately now , for avoiding TDS on interest paid by the bank .
11. Keep the records of all your financial transactions . Money borrowed from friends , Jewelry inherited/purchased ,Gifts received, wedding expenditures, cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE , an assessing officer can invoke 60 % tax ,15 % surcharge ,3 % cess with an added penalty of 10 % .To avoid such hefty payment of tax , keep records of your transactions to enable yourself to explain sources of funds .
12. For authentic details of all the matters relating to Income tax ,go to the website of Income Tax Department ,Government of India :http://www.incometaxindia.gov.in/
5. While purchasing insurance policy or any other financial instrument like pension plan, mutual fund etc. discuss with the financial advisors / consultants / agents etc who are selling the product regarding the tax concessions available specifically for the instrument in question and reconfirm by going to the website of the issuer .Some advisors/consultants who have their interest in selling these products may mis-inform you about the concessions available .
6. Verify such concessions are useful to your tax plan and you can make use of such concession for the present year .
7. Beware of the instruments like unit linked policies , ELSS etc which are linked to market performance . Such instruments will perform only when stock markets. perform . Some times long terms returns are shown with illustrative rates which may look lucrative . Please remember that those rates are only illustrative and the such returns may become illusive if Net Asset Value ( NAV ) does not grow and if sellers do not guarantee the return . Know the risks of investing in such high risk products .
8. If instruments warrant repetitive payments say monthly or annually , please check your financial position with regard to affordability of the product for you for long term .
9. After making all the payments and investments and after getting the total income correctly calculated , you can go again to income tax Dept site and arrive final tax liability .
10. If you are eligible to submit form 15H or 15G to the banks , do it well in time , preferably at the beginning of the financial year or immediately now , for avoiding TDS on interest paid by the bank .
11. Keep the records of all your financial transactions . Money borrowed from friends , Jewelry inherited/purchased ,Gifts received, wedding expenditures, cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE , an assessing officer can invoke 60 % tax ,15 % surcharge ,3 % cess with an added penalty of 10 % .To avoid such hefty payment of tax , keep records of your transactions to enable yourself to explain sources of funds .
12. For authentic details of all the matters relating to Income tax ,go to the website of Income Tax Department ,Government of India :http://www.incometaxindia.gov.in/
CALCULATE TAX RELIEF FOR SALARY ARREARS UNDER SECTION 89(1)
HOW TO CALCULATE RELIEF ON TAX ARREARS UNDER SECTION 89 (1 ) :
Let us assume that you have received arrears in Financial year 2021-22 . The arrears pertain to salaries of FY 18-19 , 19-20 , 20-21 and 21-22 . Then
1. Calculate Income tax on salary with arrears for the fy 2021-22 Say the income tax is A
2. Calculate Income tax on salary for the year fy 21-22 after reducing the arrears pertaining to fy ,18-19 & 19-20 , 20-21 for the fy 2021-22 Say the income tax is B
3. The difference is extra tax payable by you for fy 2021-22 is C = A - B
4. Now note down the income tax already paid for earlier years with your income without arrears . Say you have paid Income tax D for fy 2018-19 , E for FY 19-20 & F for FY 20-21 . Total Tax paid earlier is D+ E+ F = H
5. Add the income arrears pertaining to each earlier years to your income reported and calculate taxes for each year and say the new tax payable is I for FY 2018-19 , J for fy 19-20 & K for FY 20-21 . Total tax payable now for earlier years is I+ J+ K = L
6. The additional tax payable on account of arrears for previous years is M = L- H
Now under rule 21A , you can chose either C or M whichever is beneficial to you . That means either you can pay total tax of A or
B+ M whichever is beneficial .
To know about rules for tax relief on salary arrears , you may go HERE
Let us assume that you have received arrears in Financial year 2021-22 . The arrears pertain to salaries of FY 18-19 , 19-20 , 20-21 and 21-22 . Then
1. Calculate Income tax on salary with arrears for the fy 2021-22 Say the income tax is A
2. Calculate Income tax on salary for the year fy 21-22 after reducing the arrears pertaining to fy ,18-19 & 19-20 , 20-21 for the fy 2021-22 Say the income tax is B
3. The difference is extra tax payable by you for fy 2021-22 is C = A - B
4. Now note down the income tax already paid for earlier years with your income without arrears . Say you have paid Income tax D for fy 2018-19 , E for FY 19-20 & F for FY 20-21 . Total Tax paid earlier is D+ E+ F = H
5. Add the income arrears pertaining to each earlier years to your income reported and calculate taxes for each year and say the new tax payable is I for FY 2018-19 , J for fy 19-20 & K for FY 20-21 . Total tax payable now for earlier years is I+ J+ K = L
6. The additional tax payable on account of arrears for previous years is M = L- H
Now under rule 21A , you can chose either C or M whichever is beneficial to you . That means either you can pay total tax of A or
B+ M whichever is beneficial .
To know about rules for tax relief on salary arrears , you may go HERE
ADVANCE TAX CALCULATOR
ESTIMATE AND PAY ADVANCE TAX
|
Under Section 208 of Income-tax Act, every assessee is required to pay advance tax if the tax liability for the previous year exceeds ten thousand rupees.The Tax payable during the financial year itself is called Advance Tax .For individuals with salary as sole source of income ,TDS is to deducted by the employer during disbursal of salary and hence question of paying advance tax separately may not arise. One has to include the income from interest , capital gain , rent etc while calculating advance tax payment .
DUE DATE SCHEDULE FOR BOTH INDIVIDUALS AND CORPORATES |
|
DUE DATE |
ADVANCE TAX PAYABLE |
Before 15th June 21 |
15% of advance tax |
Before 15th Sept 21 |
45% of advance tax |
Before 15th Dec 21 |
75% of advance tax |
Before 15th March 2022 |
100 % of advance tax |
A Resident senior Citizen is exempted for paying advance tax ,if he has no income from business or profession .He can discharge his tax liability by paying self assessment tax .
For calculating Advance tax Payable , CLICK HERE
ANNUAL
FILING OF INCOME TAX RETURNS
Income Tax returns can be filed on line . For further details visit IT RETURNS Page
The Article on " TAX PLANNING FOR FY 2021-22 CONTAINS 5 PARTS
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2021-22 CLICK HERE
PART 2 : TAX RATES / SLABS FOR FY 2021-22 CLICK HERE
PART 3 : TAX REBATES FOR FY 2021-22 CLICK HERE
PART 4 : ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2021-22 READ THE ABOVE PART
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
HOW TO PAY INCOME TAX ONLINE ? CLICK HERE
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2021-22 CLICK HERE
PART 2 : TAX RATES / SLABS FOR FY 2021-22 CLICK HERE
PART 3 : TAX REBATES FOR FY 2021-22 CLICK HERE
PART 4 : ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2021-22 READ THE ABOVE PART
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
HOW TO PAY INCOME TAX ONLINE ? CLICK HERE
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