Income Tax Calculator – The Concept and Steps to Calculate Income Tax Estimates

Many people are unable to arrive at their correct payable income tax amount. 

It is because they calculate the income tax amount on their own. It denotes errors and issues later. 

It is where the facility of income tax calculator online has been made available. 

If you want to know about it and the steps of using it, here is a quick post!

What is an income tax calculator? 

The income tax calculator online facility is an online tool available on third-party and lender’s website. It is an easy to use tool that helps you to estimate your taxes on income. 

For example, suppose if you get an HRA exemption, you can enter the same on the income tax calculator. 

This way, you can arrive at the correct estimated tax savings and payable income tax. 

How to calculate an accurate income tax estimate?

1. Open the income tax calculator online on a lender’s site and choose the assessment year for a year. 
2. Enter your income details, HRA exemption details, section 16 deduction details, and self-occupied and rented home details. The income details will include entering your gross annual salary, interest received from the savings account, and other sources. 
3. Once you have entered all these details, you should click on the Next button. On the next page, you have to enter details about deductions under HRA and more. After you click on the ‘Calculate’ button, the income tax calculator will showcase the precise estimate of your payable income tax. 

The format of the income tax calculator online may vary from lenders to lenders. But, the details that you need to enter may remain the same.