What do We Mean by Income Tax?
An income tax in India is a type of tax imposed by the Government of India on salaried people and business owners. The income tax that we pay to the Government is used for the benefit of the citizens, maintenance and upgradation of public properties, funding public services, etc. Individuals and businessowners have to file an Income Tax Return (ITR) to pay the taxes.
There are various types of income tax that the Government charges. Let us understand the types of income taxes levied by the Government
Types of Income Tax Levied by the Government
1. Individual/ Personal Income Tax
Individual or Personal Income Tax is a type of tax which the Government levies on the people who are salaried or earn wages or any other type of income.
2. Business Income Tax
Apart from levying income taxes on salaried people, the Government of India also levies income taxes on business owners, whether a corporation, small business owner, business run in partnerships, etc.
People often face a hassle while calculating the income taxes they need to pay the Government. To ensure that you do not face any such inconveniences, Bharti AXA Life brings to you, income tax calculator. It is an online, free of cost tool that helps you calculate your income tax accurately and in a hassle-free way and within a few clicks. It is recommended to calculate the income tax you will have to pay for the financial year as planning in advance lets you plan your finances way ahead of time. Moreover, it also saves you paying a lump sum amount of income tax at once. With the help of the income tax calculator, you can get a comprehensive overview of the income taxes you have to pay and plan accordingly.
Let us understand what an income tax calculator is.
What is an Income Tax Calculator?
An income tax calculator is an online, free of cost tool that helps you calculate the income tax you have to pay to the Government. Bharti AXA Life’s income tax calculator is an ideal and the best tool to calculate your income tax. Furthermore, we ensure that the latest income tax rates and rules are updated so that you do not face any hassle and can calculate your income tax seamlessly.
Let us see how we can use the income tax calculator and estimate our taxes accurately.
How to Use an Income Tax Calculator to Calculate Your Taxes?
Step 1 : Fill in your age
The first step towards using an income tax calculator is filling in the age group you fall in.
Step 2 : Enter your annual income
The second step towards using an income tax calculator is to fill in your annual income. Apart from your income, any side income, any profits, etc., also have to be mentioned.
Step 3 : Fill in the details of tax-saving investments that you have made
The third step towards using the income tax calculator is to fill in the tax-saving investments under Section 80C of the Income Tax Act, 1961.
After doing the above mentioned three steps, you can get brief and conclusive information on the income taxes you have to the Government.
There are various benefits of using an income tax calculator to calculate your income taxes. Let us look at the benefits.
Benefits of Using an Income Tax Calculator to Calculate Your Taxes
1. It is an Easy-to-Use Calculator
An income tax calculator is an easy-to-use and free of cost tool to calculate your income tax. It gives you an accurate estimate of the income tax that you will have to pay to the Government in a few clicks and simple steps.
2. Use it at the Comfort of Your Home
An income tax calculator can be used in the comfort of your home without having to step out of your home. It is available online and ensures that you do not face any hassle while calculating your income tax.
3. Gives Accurate and Comprehensive Information
Using an income tax calculator helps you get accurate and comprehensive information on how much income tax you will have to pay in the current financial year, provided complete and accurate details are provided.
4. Helps You Manage Your Expenses in Advance
With the help of an income tax calculator, you can get an accurate estimate of the amount of income tax you will have to pay. By using it and planning your income tax payment in advance, you can manage your other financial requirements and expenses. With this, you will not have to face any hassle in future.
Below mentioned are areas for which the individuals have to pay income tax. Let us know a few of them.
- 1. Salaried people
- 2. Business owners, be it in partnership, small business owners, etc.
- 3. People who are incurring income from rents
- 4. Capital gains
Calculating how much income tax you have to pay for a current financial year can sometimes be a hassle and time taking. That’s where the role of an income tax calculator comes in. It ensures that you get accurate and conclusive information on the income tax you will have to pay within minutes and a few clicks.