Income tax is the way of contributing to the government. When you are earning money, you are bound to a certain amount of it through the norms of direct tax. On the contrary, the indirect tax compels you to pay a certain amount of money for the availed services in theatre or restaurant. This is why you should know about income tax calculator that will give you a clear knowledge of tax that you are liable to pay.
The assessment year and financial year play a major role in regulating people's amount of income tax which one can understand by using income tax calculator India. Amount of tax is based on the capital gains and the asset that is owned by the consumer. Here, time is one of the factors, too. However, you must know that equity mutual funds holding more than any shares holding less than a year do not require you to pay a penny for tax.
Function of Income Tax Calculator
As the name suggests, through undertaking the calculating process, you can learn what amount of tax you are required to pay. The income tax calculator indicates that your income regulates the tax; for an example if your income is within Rs. 2,00,000, you are not required to pay tax. You can take help of the income tax calculator online and fill up certain sections that will give you a realistic picture of the tax.
● In order to initiate the income tax calculator, you are required to select the assessment year first for the one that you wish to calculate your tax liability.
● The individual is required to mention his category - male, senior citizen or female. Then he/she needs to mention the residential status initiating the further step.
● Next step of income tax calculator requires you to calculate the income from house property and capital gains. Additionally, you can calculate the long-term capital gains charged to tax 10% or 20%.
● Even the income tax calculator exemptions are calculated to detect further the amount of net taxable income.
● Due date of submission of return and the real date of submission of the date on assessment is provided through the income tax calculator.
● In the last stage, the income tax calculator free offers you a clear knowledge of the number of interests under the sections of 234A, 234B and 234C.
The individuals are required to mention the details regarding the amount of donation, income coming from every source, home loan and its interest and expenditure in the sections of income tax calculator. You can go through the act and regulations to know all about the income tax calculator deductions.
Effect of Union Budget 2018 on Income Tax Calculator
After the proposal of Budget 2018, there have been no significant changes in the tax income slabs. Liability of Indians is increased through this budget; however, senior citizens are not included in the category. Rs. 40,000 is announced to be exempted for the individuals earning which indicates the fact that the real amount of benefit is less. In income tax calculator, the education and health cess have raised from 3% to 4% increasing the tax liability.
Why do You need to Pay Tax using Income Tax Calculator?
You are pretty clear on the subject that you can get a realistic figure of the amount of tax from using income tax calculator; however, the reason for paying it might be unclear to you. The reluctance of paying tax among the individuals are always prevalent and this is the very reasons hinders the development process of the country.
Many people think that they are already paying for their house or food and tax is an additional burden to their financial situation; hence no need to use income tax calculator. Due to this reason, even before starting the procedure of income tax calculator for India, you should discard the negative aspects of tax culture and consider it as a good one for the development of the country.
● The senior citizens of India are not offered the perks of social security; however, the Government of India has come up with a certain exemption on the income tax calculator. Your contribution through the taxes is the way of adding to the welfare schemes run by the government.
● You should take help of income tax calculator for 2018 for providing the proper amount of tax as the government takes care of numerous employees in various departments. The administrative charges are cleared out through your part of contribution detected in the income tax calculator.
● One of the huge parts of expenditure is accounted in the sector of National Defence and Infrastructure Developments. Now the income tax calculator provides you proper knowledge of your tax responsibility to help the nation run.
You can always take help of the income tax calculator by the state to understand whether the amount state varies from location to location. In addition to the context, opting for income tax calculator comparison is wise to make use proper use of the income tax calculator. The details on income tax calculator bonus will interest you to pay the tax within due date.