As the financial year comes to end, income tax is in everyone’s mind. Income earner needs to do income tax calculation, pay income tax online and e-file income tax returns within a stipulated time. Tax that citizens pay is utilised by the government for development purposes. Income tax calculation is based on the income tax slab applicable for the particular financial year. Let’s take a look at the new income tax slab of 2021-22.
With the amendments in the Finance Act, 2020, The Finance Ministry has introduced the ‘New Tax Regime’. Individuals and HUFs are allowed to choose between the new and old tax regimes. Let’s take a look at the new and old regime income tax slabs for 2021-22.
New Tax Regime – Income Tax Slab Rates for 2021-22
Income Tax Slab
Income Tax Rate Applicable
Below INR 2,50,000
Nil
INR 2,50,001 to INR 5,00,000
5% above INR 2,50,000
INR 5,00,001 to INR 7,50,000
INR 12,500 + 10% above INR 5,00,000
INR 7,50,001 to INR 10,00,000
INR 37,500 + 15% above INR 7,50,000
INR 10,00,001 to INR 12,50,000
INR 75,000 + 20% above INR 10,00,000
INR 12,50,001 to INR 15,00,000
INR 1,25,000 + 25% above INR 12,50,000
Above INR 15,00,000
INR 1,87,500 + 30% above INR 15,00,000
Old Tax Regime – Income Tax Slab Rates for 2021-22
old income tax regime classifies taxpayers based on the age group and the applicable rates accordingly.
For Individuals below 60 years
Income Tax Slab
Income Tax Rate Applicable
Below INR 2,50,000
Nil
INR 2,50,001 to INR 5,00,000
5% above INR 2,50,000
INR 5,00,001 to INR 10,00,000
INR 12,500 + 20% above INR 5,00,000
Above INR 10,00,000
INR 1,12,500 + 30% above INR 10,00,000
For Individuals between the age of 60-80 years
Income Tax Slab
Income Tax Rate Applicable
Below INR 3,00,000
Nil
INR 3,00,001 to INR 5,00,000
5% above INR 3,00,000
INR 5,00,001 to INR 10,00,000
INR 10,000 + 20% above INR 5,00,000
Above INR 10,00,000
INR 1,10,000 + 30% above INR 10,00,000
For Individuals above 80 years
Income Tax Slab
Income Tax Rate Applicable
Below INR 5,00,000
Nil
INR 5,00,001 to INR 10,00,000
20% above INR 5,00,000
Above INR 10,00,000
INR 1,00,000 + 30% above INR 10,00,000
(Please Note: The rates of surcharge and cess applicable are the same under both new and old tax regimes.)
As per the new tax regime, income tax rates are lower. However, most of the income tax deductions and exemptions allowed under the old income tax regime are not allowed in the new income tax regime. Choice of the tax regime and knowing the applicable income tax rates are crucial. Now, the income tax calculation is also made easy as you can easily calculate income tax using an income tax calculator online. This simple tool allows you to input all your details and know the tax outgo based on the details provided. Once you make an income tax calculation, you can stay tax compliant by making income tax online payments.
Income tax calculation using an income tax calculator
You can calculate income tax online in only a few seconds using the income tax calculator:
- If you are a salaried individual, the following are the steps to follow for income tax calculation
- Enter your basic details such as age, residence city type, type of residence and occupation as salaried
- Enter your salary details such as basic salary, dearness allowance, house rent allowance, other allowance and EPF contribution
- Enter details of your other income such as rental income, interest income, etc.
- Enter the details of capital gains from various investments
- List down all the deductions and exemptions that you are claiming
- Once you enter all the details, click on calculate. The income tax calculator instantly calculates the amount of tax liability as per the applicable rate.
It is this simple to calculate income tax online using an income tax calculator. Make use of such tools to plan your taxes.
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Paying tax to the government is very much beneficial for both the people and for the growth of the country as well.
Many people are dealing with the income tax computations, and to resolve the things, a person has to discuss with tax professionals to clear up the things or now the software programs are also available that can ease up the stress of the people who are dealing with the income tax computations.
Calculating the income tax may be very confusing and stressful, but the income tax (IT) calculator can help the people to reduce the stress.
Contact the Professional (Chartered Accountant).
Both the options are convenient, time saving, and easy to calculate income tax.
But if you want to save your hard earned money (fees of a professional chartered accountant) and also want to calculate & pay the right amount of tax on your total earnings, then first option will be best for you.
https://www.justwebworld.com/what-is-income-tax-calculator-and-how-to-calculate-income-tax/
I trust you will increase and expand your insight by examining this article.
The article clarifies what is a Non-Banking Financial Company (NBFC), what are various kinds of Non-Banking Financial Company (NBFC), regardless of whether the Reserve Bank manages every cash-related affiliation, what are the advantages and besides compliances that should be possible by non-banking monetary affiliations.
NBFC is an affiliation chosen under the Companies Act, 2013 of India, occupied with credits and advances, procurement of offers, stocks, insurances, enlist buy affirmation business or chit-store business, yet evades any substance whose focal business is agribusiness, present-day action, buy or offer of any item (other than protections) or passing on of any help and course of action/buy/improvement of the steady property.
Furthermore, you should be knowing the Full form of NBFC The working and activities of NBFCs are facilitated by the Reserve Bank of India (RBI) inside the plan of the Reserve Bank of India Act, 1934.
That is the clarification, the Indian economy is on the decrease because of the breakdown of cash-related relationships in India as far back a couple of years.
Are there various types of NBFC?
Even Tax Assessees who file their Income Tax Returns year over year miss out on some aspects by oversight or for various other reasons.
Filing Income Tax on time gives enough time to make course corrections and modifications to the earlier files returns.
Filing Income Tax Returns on time safeguards the Assessee from having such unpleasant experiences
Safeguards from stress caused due to delay
Filing Income Tax is no more a cumbersome process as it was considered during the earlier days.
This further complicates the already delayed filing increasing the chances of payment of excess tax.
