Income tax filing season can be incredibly stressful and time-consuming for everyone. Shuffling hours of paperwork while ensuring nothing is left out of your filing can be extremely tiring. You can avoid the last minute rush and stress of any discrepancy at the time of filing returns by assessing how much income tax you need to pay in advance.
While there are several factors that need to be taken into consideration, including your taxable income, age, exemptions, if you follow the steps given below and use an accurate income tax calculation tool such as the one provided by Aegon Life, you will be able to get a precise calculation of how much income tax you owe.
An income tax calculator is a special tool that not only helps you calculate your taxable income and helps you determine your overall tax liability to know where you can avail tax saving. The calculator uses information such as your:
After you input all the above information into the calculator, it gives you a summary of your level of income, investment and tax liability. It also shows you total tax payable split into the total tax on your income and the education cess.
In order to calculate your overall tax liability and tax due, individuals are required to enter relevant information into the income tax calculator. It is important to remember that your overall income includes all your income from your salary, any income from any housing property, any capital gains, income from freelancing or business, and income from other sources such as interest from fixed deposits amongst othe₹ After you have calculated your overall income, you will enter all the below-given information into the income tax calculator:
As per section 14 of the Income Tax Act, your overall income includes all your income from your salary, any income from any housing property, any capital gains, income from freelancing or business, and income from other sources such as interest from fixed deposits amongst othe₹ This is your gross total income.
It is mandatory to e-file your income tax returns if your individual income is more than ₹ 5 lakh.
Regardless of whether taxes are already paid on your salary, you have to file a return if your income exceeds ₹ 2,50,000, NRI or not. This is because your employer may not be aware of other forms of income, such as interest income or capital gains income, or may not have given you a tax deduction for investments you did not submit a proof for. Filing your tax returns is the only way to ensure your tax is calculated correctly.
If you have filed your income tax return form without a digital signature, after you file your return, the IT department will generate an ITR-V form to verify the legitimacy of your filing. You can download this form from the Income Tax India website or it will also be delivered to you by post. Individuals must print, sign and send this document to CPC Bangalore within 120 days from the date of e-filing to verify their returns.
The last day to file your returns is July 31st. If you fail to submit your returns by July 31 of the current year, you can file it by March 31 of the next year.
Online income tax calculators are a simple and incredibly hassle-free way of calculating your income tax without panicking about filing them at the last moment. Several life insurance companies and financial advisory companies provide such calculators on their website to help you calculate your overall tax liability and deductions, and also recommend investment options that suit your financial portfolio, their benefits, and their tax saving ability.
Other Tax Articles:
1. ITR 1 Form
2. Income Tax Act
3. Income Tax E-Filing in India
4. Income Tax Slab FY 2018-19
5. Section 80D Deduction