When you are working as an individual, you need to pay taxes every year. The more you earn, the more you have to pay tax. This tax can be deducted at the source when you receive your monthly salary or you can file your taxes through the income tax return portal introduced by the Central Board of Direct Taxes (CBTD). The amount of money you owe to the Income Tax Department every year is called tax liability. Since we need to pay tax every year we should learn how to calculate tax liability.
How to calculate tax liability?
Visit the income tax portal.
https://www.incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx
Select the year of assessment to calculate your tax
Select your age. This is very important since the slab to pay income differs based on different age groups.
Tap on 'income field' and share the information about your gross salary, annual income, rental income, annual interest paid, home loans, and self-occupied or let-out property.
Enter information on different deductions that fall under basic deductions such as Section 87A, 80C, 80CCD (1B), 80D, 80G, 80E, 80TTA, 80GG. If you have an education loan or saving deposits please share the details of their interest rate.
Provide information on your basic salary, DA, HRA, and rent that you pay per annum.
Tap on the calculate button after selecting whether you stay in a metro city.
And this is how you can easily calculate your income tax liability. I hope you understand this easy process of how to calculate tax liability.
Read more:
What Is Casual Income In Income Tax?
What is Section 194A of the income tax act? How to show borrowed money in income tax return? What is perquisites in income tax?Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
How to calculate tax liability?
Rikh
236 Views
1
3 Year
2022-04-07T19:16:28+00:00 2022-04-08T14:35:54+00:00Comment
Share