Find out how to calculate your income tax here
Union Budget 2022-23: Each system has a number of tax brackets or rates for individual taxpayers, depending on their annual income and age.
Union Budget 2022-23: Finance Minister Nirmala Sitharaman will present the Union Budget 2022-23 on February 1 at 11 a.m. News18
As the date draws closer to the presentation of the Union Budget 2022-23, all eyes are on Finance Minister Nirmala Sitharaman. Many people are eager to know if Sitharaman will announce tax benefits on February 1.
The income tax system is divided into two structures at the moment – the new and the old tax systems. Each system has a number of tax brackets or rates for individual taxpayers, depending on their annual income and age.
This is how you can calculate your income tax before the Union budget
― Visit the official website of the Union Government Income Tax Department at – https://www. incometaxindia.gov.in/
― Click on the option for tax tools which is given on the main page
― Select the option for the tax calculator and enter the required details such as your residency status, net taxable income, etc.
― Submit your financial information to see the income tax you owe
Direct link here.
Individual taxpayers fall into three categories: persons under the age of 60 (including non-residents and residents), resident seniors between the ages of 60 and 80, and super senior residents over the age of 80.
Old tax regime:
This structure allows individual taxpayers to benefit from certain deductions and exemptions. The Ancien Régime Fiscal comprises four slabs:
- People who have an annual income below Rs 2.5 lakh do not have to pay income tax
- People with income between Rs 2.5 lakh and Rs 5 lakh have to pay 5% income tax
- Taxpayers with income between Rs 5 lakh and Rs 10 lakh have to pay 20% tax on their income
- People who earn more than Rs 10 lakh will be taxed at a rate of 30%
New tax regime:
This structure allows individuals to pay taxes at lower rates if they waive certain deductions available under Section 80C. Mortgage exemptions, insurance and flat-rate exemptions are also not applicable under this system.
- Persons with an annual income of up to Rs 2.5 lakh are exempted from paying income tax
- Individual taxpayers with an income of Rs 2.5 to 5 lakh will be taxed at 5% on their total income
- People with income between Rs 5 lakh and Rs 7.5 lakh have to pay income tax amounting to 10% of their income
- Taxpayers with annual income between Rs 7.5 lakh and Rs 10 lakh will be taxed at 15% on their income.
- People earning between Rs 10 lakh and Rs 12.5 lakh per year have to pay 20% income tax
- Individuals with an annual income between Rs 12.5 lakh and Rs 15 lakh will be taxed at 25% on their income
- Finally, people who earn more than Rs 15 lakh per year will be taxed at 30% on their income