Have you been paying your taxes on time? If you have, cheers! You are doing great. If you are looking for help trying to pay your taxes, don’t worry. This post is here to help you out.Â
In this post, we can discuss the current income tax slabs and how much you need to pay.  Â
The first thing you need to know about is the tax calculator. It helps you understand the amount of tax you need to pay without having to do the math manually.Â
What is an Income Tax Calculator?
An income tax calculator is an online application that allows you to compute taxes depending on your income. A percentage of your net income will be taxed, depending on your income bracket.
With our calculator, you can easily calculate your income taxes. It ensures that you receive an accurate amount of payable tax using an income tax calculator, updated with the most recent income tax rates and laws.
Individuals can use an online income tax calculator to determine their total tax liability. The calculator estimates tax liabilities using age, income, spending, relevant tax deductions, and existing investments.
A Quick Glance at Income Tax Slabs
The following table shows the most recent income tax slabs for individuals and HUF:
| Taxable Income | New Tax Regime |
| Up to Rs.2.5 lakh | Exempted |
| Greater than Rs.2.5 lakh to Rs.3 lakh | Exempted |
| Greater than Rs.3 lakh to Rs. 5 lakh | 5% |
| Greater than Rs.5 lakh to Rs.6 lakh | 5% |
| Greater than Rs.6 lakh to Rs. 9 lakh | 10% |
| Greater than Rs.9 lakh to Rs.10 lakh | 15% |
| Greater than Rs.10 lakh to Rs.12 lakh | 15% |
| Greater than Rs.12 lakh to Rs.15 lakh | 20% |
| Above Rs.15 lakh | 30% |
The tax rates in the new tax system remain the same for all groups, namely-
- the Hindu Undivided Family and persons under the age of 60
- Senior citizens who are between the ages of 60 – 80
- Super senior citizens who are beyond 80 years.Â
As a result, the new tax regime will not include an increase in the basic exemption ceiling for senior and super-elderly persons.
Under the new tax regime, individuals who have a taxable income of up to Rs. 7 lakhs are entitled to a tax rebate under section 87A. Individuals who pay tax under the former regime might still receive a reimbursement of up to Rs. 5 lakh.
India’s income tax system is based on tax slabs. Taxpayer’s income is classified into ranges or slabs, and certain tax rates are applied to them. This is a progressive taxation system in which persons with higher incomes pay higher income tax rates in proportion to their higher income.
The Indian government tries to develop a fair taxation system for all residents by implementing income tax slabs. To that objective, the government periodically revises the tax slabs and makes revisions to the Union Budget.
Which Tax Slab Do You Fit In?Â
If you find the answer in the table above, you are all set and done to start paying your taxes for the year.Â
Different Forms of Taxable Income in India
If you are still wondering how to calculate your income to know which slab you fit in, refer to the points below:
- Salary: This category includes the money received by employees from their employers. This section includes the pension that a person receives after retirement. Form 16 includes all of your salary information. Consider including this form as proof of income and employment when filing your taxes.
- Property Income: Under the Income Tax Act, any income earned by an individual by renting, leasing, or selling a residential property is Property income.
- Income from Your Business: According to Sections 30 to 43D of the Income Tax Act, income earned from sources such as freelancing, business, or professions is taxed under this category. Income from such occupations or side hustles falls under this category.
- Capital Gain Income: This category takes into account – earnings derived from sources such as investments in capital assets. This can include mutual funds, real estate, and stocks. This part also categorizes your capital gains into two key groups based on your holding tenure. These include long-term capital gains (LTCG) and short-term capital gains (STCG).
- Income from Other Sources: Finally, any income that does not fit into the four categories listed above is taxed as income from other sources. Here are some examples of revenue sources that fall under this category.
- Gifts
- Lotteries
- FD Interest
- Savings Account Interest
- Dividend Income
- Pension
- Rental income from non-residential property.Â
Things to Keep in Mind About the New Tax Regime
If you want to file your taxes using the new regime’s income tax slabs, there are a few things you should know. They are as follows:
- Individual taxpayers will be unable to claim the 70 tax deductions and exemptions allowed under the previous regime. Individuals cannot claim common deductions such as Section 80C, Section 80D, and HRA exemptions.
- The income tax slabs and interest rates indicated in the new tax regime are the same for all persons, including senior and super-senior citizens.
- Under Section 87A, taxpayers with net taxable income less than or equal to Rs. 7 lakh are eligible for a tax refund.
Conclusion
If there is one aspect of finances everyone struggles with, it is managing their taxes and filing them properly. Make sure you do it right and stay updated on this factor. It will help you avoid penalties and stay ahead with your financial stability.
