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Income Tax Calculation:
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Income tax calculation involves determining the amount of tax an individual or entity owes to the government based on their taxable income, deductions, and applicable tax slabs. It helps in financial planning and ensures compliance with tax laws.
The calculator uses the standard income tax formula:
Where:
Explanation: The calculator applies India's progressive tax system with different slabs for different age groups and calculates the tax liability accordingly.
Details: Accurate tax calculation helps individuals plan their finances, avoid underpayment penalties, claim eligible refunds, and ensure compliance with tax regulations.
Tips: Enter your total annual income, all eligible deductions, select your filing status and age group. The calculator will compute your tax liability based on current tax slabs.
Q1: What deductions can I claim?
A: Common deductions include Section 80C investments (up to Rs 1.5 lakh), medical insurance premiums, home loan interest, and education loan interest.
Q2: Are there different tax slabs for different age groups?
A: Yes, senior citizens (60-80 years) and super senior citizens (above 80 years) have higher exemption limits and beneficial tax slabs.
Q3: When is the tax filing deadline?
A: Typically July 31st of the assessment year, but extensions may be announced by the government.
Q4: What is the difference between financial year and assessment year?
A: Financial year is when income is earned (April-March), assessment year is when that income is assessed and taxed (following year).
Q5: Can I revise my tax return if I make a mistake?
A: Yes, the Income Tax Department allows filing revised returns within specified time limits to correct errors or omissions.