Introducing a web portal for salaried employees to calculate income tax from their payslips. Let’s find out how to use the Income Tax Calculator to calculate your tax in easy steps.

Step 1: Open the Income Tax Calculator

Step 2: Fill in basic details

Basic details for Calculate income tax

Step 3: Key in your Earnings

Copy the earnings from your pay slip to appropriate salary heads listed.

Salary Earnings

If a salary head is not listed, you should key in the value under ‘Other Allowance’.

Other Allowance

Step 4: Key in your Deductions

Copy the deductions from your payslip to appropriate salary heads.

Salary Deduction

If a salary head is not listed, you should key in the value under ‘Other Deduction’.

Other Deduction

Step 5: Make changes to Earnings and deductions

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If your salary has changed during the financial year, you can make changes here.

Total Earnings in income tax calculator
October Earnings

Step 6: Compute Income Tax to calculate Tax Liability

compute tax in income tax calculator

As you see, the Tax Liability in Old regime is INR 71872 and liability in new regime is INR 41226. You are recommended to choose New regime as it provides a benefit of INR 30646.

Step 7: View Calculation Summary

Over here, you will know how the Tax liability is calculated from the data you provided.

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Income Tax calculator to calculate liability

Step 8: Investment Declarations

Now, let’s declare the investments that you have made or are about to make. The investment declarations can bring down the tax liability.

Let’s declare investment of INR 150000 in Life Insurance Policy

Declare Section80C

Let’s also declare INR 200000 in Home Loan Interest.

declare in income tax calculator

Step 9: Compute Income Tax again

This time the investment declarations will also be taken in to consideration while calculating tax liability.

 Income Tax Calculator

As you see, the tax liability in Old regime has come down to nil, and you are recommended to choose the Old regime now.

The income tax calculator helps you understand the tax calculation process and also helps you save tax by letting you experiment your investment declarations. The income tax calculator advises you on how to save maximum tax.