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Income Tax Calculator | Things You Need to Know About Calculating Income Tax |YES BANK

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With the consistently changing tax laws, income tax calculations can get quite complicated. Tax exemptions, tax rebates, applicable laws, etc. can all become slightly daunting to take care of without some help. You can use various online income tax calculators to ascertain your tax liability easily and accurately.

What is an income tax calculator?

An income tax calculator is a simple online tool, which helps you estimate your tax liability according to the tax laws of the specific year. In this tool, you only need information like total yearly salary, rent paid, tuition fees, investments made, interest paid on loans, etc. and the calculators automatically assess your tax liability. You can use the income tax calculator for 2020 by the Income Tax department of India to know your taxes for FY 2019-2020.

How to make use of the income tax calculator?

You can follow the steps below to calculate your tax via an online income tax calculator:

  • At first, the tool will ask you for the assessment year, tax-payer status (individual, HUF, LLP, firms, etc.), gender, and residential status.

  • You would then need to enter your annual salary, inclusive of bonuses, variable elements, as well as rental income, interest paid on home loans for rental and self-occupied property. The salary also must provide for all exemptions such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), standard exemption and professional tax.

  • You will then claim for deductions on tax-saving investments under the applicable sections such as 80C, 80CCD, 80G, 80E and 80TTA. This is available only for people filing under the old slab system. For the new tax slabs, there are no deductions (except NPS or the National Pension System) available, but the applicable tax rates are lower.

  • Once done, your tool will seek confirmation and auto calculate your tax liability for the specific year based on your information and applicable tax slab.

What are the benefits of using an income tax calculator?

An income tax calculator is an efficient tool to know your tax liability by considering important details like income, expenses and investments. Here are some advantages of using an income tax calculator:

  • Easier tax planning: The Union Budget 2020 announced tow tax regimes – old and new, with several changes in the new format. Tax-payers can select the tax regime they wish to adopt. With the help of an income tax calculator for 2020, you can access which tax regime suits you best and accordingly estimate your liability and get the tax deductions, if any.

  • Simple and effective: By using an online tax calculator, you can be sure of your tax liability calculation, and its authenticity, given the present tax laws. Online tax calculators minimise errors.

  • Time-saving: Tax-planning is complicated, time-consuming and often stressful. Moreover, given the changing laws and the introduction of the new tax regime, manual estimation of taxes can become slightly daunting. However, with these simple and easy to use tools, you save a lot of time as compared to manual tax estimation.

  • Cost-effective: Online calculators are free to use and are hence, more cost-effective when compared with professional chartered accountants.

Choose YES BANK

You can select specially-designed YES BANK Tax Solutions to plan your financial goals and access comprehensive tax solutions to grow wealth and save taxes.

Features and benefits include:

  • Income tax calculator

  • HRA calculator

  • Multiple tax-saving instruments

  • Rent receipt generator

  • Pay taxes online with YES BANK Net Banking

  • Easy tax return filing solutions at discounted prices

Be it calculation tax liability or choosing the right tax-saving investment products, YES BANK Tax Solutions provide end-to-end support for you all tax-related concerns.

Know more about NRI Savings Account, Savings Account, and Fixed Deposit by visiting YES BANK'S website

 

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