income tax calculator 2022-23

income tax calculator 2022-23

To calculate your income tax for the financial year 2022-23 (assessment year 2023-24), you can use the following steps:

  1. Determine Your Gross Income: Add up all your income sources for the year, including salary, business income, rental income, interest income, etc.
  2. Calculate Deductions: Subtract any eligible deductions under Section 80C (such as investments in EPF, PPF, life insurance premiums, etc.), Section 80D (health insurance premiums), Section 80TTA (savings account interest), and other applicable sections.
  3. Compute Taxable Income: Subtract the total deductions from your gross income to arrive at your taxable income.
  4. Apply Tax Slabs: Determine the tax slab applicable to your taxable income. For the financial year 2022-23, the income tax slabs for individuals below 60 years of age are as follows:
    • Up to ₹2.5 lakh: Nil
    • ₹2,50,001 to ₹5,00,000: 5% of income exceeding ₹2.5 lakh
    • ₹5,00,001 to ₹10,00,000: ₹12,500 + 20% of income exceeding ₹5 lakh
    • Above ₹10,00,000: ₹1,12,500 + 30% of income exceeding ₹10 lakh
  5. Calculate Tax Liability: Apply the applicable tax rates to your taxable income based on the slabs mentioned above.
  6. Include Surcharge and Cess: If applicable (for incomes above ₹50 lakh), add surcharge as per the applicable rate and include health and education cess of 4%.
  7. Calculate Total Tax Payable: Sum up the tax liability, surcharge (if any), and cess to arrive at the total tax payable.
  8. Check for Rebates and Tax Credits: Ensure you have claimed all available rebates and tax credits, such as deductions for rent paid, home loan interest, etc.
  9. Net Tax Payable or Refund: Subtract any TDS (Tax Deducted at Source) already deducted and advance tax paid during the year. The result will be your net tax payable or refundable amount.
  10. Use an Online Calculator: To simplify this process, you can use online income tax calculators available on government websites or reputable financial portals. These calculators will guide you through the steps and provide accurate results based on current tax laws.

Remember to verify the accuracy of your calculations and consult with a tax professional if you have any doubts or complex tax situations.