In case your Net Taxable Income is up to Rs. So your gross income becomes your Net Taxable Income to calculate your Income Tax.ĥ. No, you cannot claim any deductions for your investments you make using New Income Tax Slab Rates for FY 2021-22. Can I save Income Tax using New Income Tax Slab Rates?Īns. You can watch this video to know what are the Tax Saving instruments you can use to Save Income Tax – CLICK HEREĤ. You can save income tax in FY 2021-22 by opting for Old Income Tax Slab Rates and making required Tax saving investments. You can download the Income Tax Calculator Android App to calculate and compare your Income Tax from here – Click Here to download Income Tax Calculator AppĪns. Where can I get Income Tax Calculator for FY 2021-22?Īns. You can choose based on your income and investments you make to accordingly calculate income tax in FY 2021-22Ģ. You have the option of choosing between Old Slab Rates and New Slab Rates in order to calculate your Income Tax in FY 2021-22. How do I calculate my Income Tax in FY 2021-22?Īns. 5 Lakhs in FY 2021-22, by investing in various investment options, you need not have to pay any Income Tax. In this way, if you can get your Net Taxable Income to below Rs. To know more about these Investment options and check their interest calculation, you can WATCH this playlist (Click Here) on YouTube I have created for you You can make investments under Section 80C ( Provident Fund, Public Provident Fund, Fixed Deposits, Equity Linked Savings Schemes, etc), Section 80D (Medical Insurance), Section 80CCD (1B) (National Pension Scheme) and many other options. Net Taxable Income = Total Income – Investments you make 5 Lakhs, you need to choose Old Tax Slab Rates while calculating Income Tax and make required Investments in such a way that your Net Taxable Income becomes less than 5 Lakhs In case your Total Income is above Rs.You will be directly eligible to get this Tax Rebate u/s 87a. In case your Total Income is below Rs.There are 2 conditions based on which you will be eligible for Tax Rebate u/s 87a: Note: This Rebate is applicable with both Old and New Tax Slab Rates How to Get your Net Taxable Income below Rs. ![]() 12,500 as Income Tax based on your Net Taxable Income.īut we also have Tax Rebate u/s 87A which provides us a maximum rebate of Rs. 5 Lakhs in FY 2021-22īased on Old and New Tax Slab Rates, you are liable to pay Rs. ![]() Let’s say your Net Taxable Income equals Rs. 5 Lakhs, you need not have to pay any Income Tax. In case your Net Taxable Income is below Rs. Many should take advantage of this Rebate that we get under Section 87A which helps us in reducing our Tax Liability. 0 if your Net Taxable Income is below Rs. ![]() As we can see, New Tax Slab Rates are reduced Tax slab rates which reduces your Tax liability at the expense of not availing any deductions to further save your Income Tax.ĪLSO READ: PPF Calculator Excel | Public Provident Fund Īnother important point is, your Tax Liability (Income Tax) becomes Rs. 10 Lakhs if you don’t want to invest in Tax Saving instruments. It would be wise to opt for New Slab Rates even for Income below Rs. 10 Lakhs in a Financial Year to have less Income Tax Liability. You can also Download my Android App – FinCalC to calculate your Income Tax and decide whether to choose Old or New Slab Rates while calculating Income Tax.Īs we can see, it would be wise to opt for New Income Tax Slab Rates when your income is above Rs. ![]() Note: We have not taken any Tax Saving Investments in above example. 12 LakhsĪs we can see in above image of comparison between Old and New Income Tax Slab Rates on Income = Rs.
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