Varun is a new joinee in the corporate workforce of India. He’s been working for over a year and needs to file his income tax returns for the assessment year of 2016-17. He joined the job right after graduation from a reputed college and is drawing an impressive salary. He understands that he will have to pay income tax on his salary, but he is a novice at taxes and doesn’t know how much he owes and how to pay it.
Anyone who is in the same boat as Varun doesn’t need to opt for the traditional route of hiring a Chartered Accountant (CA). You can use cleartax.in to not only e-file your Income Tax Returns (ITR) but to also find out how much you can save and how. But first, let’s check out our Tax Calculator to see how you can easily find out how much income tax you need to pay.
The first thing to understand is the tax slabs. An annual income of up to Rs 2,50,000 is exempt from tax. A tax rate of 10%, 20% and 30% is applicable on income above that. The details are explained in the image below.
Now, to calculate how much taxes you need to pay, you need to choose some basic details like the assessment year and your age in the first screen of our tax calculator.
Once that’s done, input the details of your earnings like your taxable salary, TDS, interest income, interest paid on home loan, interest paid on loan and rental income.
Side note: Compute your taxable salary by looking at your CTC and including fixed components like basic salary, house rent allowance, fixed allowances and bonus payments. Exclude reimbursements and retirement benefits.
After entering the income details, fill out the deductions that you can avail to reduce your tax payout.
Once the information has been filled out, click on Calculate button and you will get a table that tells you your taxable income, deductions, gross tax, tax paid and refund you are eligible for.
This is how the clearTax Tax Calculator can easily help you figure out your income tax details. Once that’s in front of you, you can directly proceed to e-filing your tax returns in a few easy steps by creating a free user account on our website. Or you can explore our comprehensive guides to learn about the tax deductions you can make.