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How to Calculate Tax on Income ?

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To calculate tax on your income, you need to follow these steps: Determine your total income: Calculate your total income for the financial year. This includes income from all sources such as salary, business, rent, interest, capital gains, etc. Deductions under Section 80C: Deduct the amount of investments made under Section 80C of the Income Tax Act, 1961 , such as Provident Fund (PF) contributions, Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), National Pension System (NPS), and Life Insurance Premium, up to a maximum limit of ₹1.5 lakh. Other deductions: Deduct other eligible deductions such as home loan interest, medical expenses, and donations made to charitable organizations under various sections of the Income Tax Act. Calculate taxable income: Subtract the total deductions from your total income to arrive at your taxable income. Apply tax slabs: Based on your taxable income, apply the relevant tax slab rates as per the Income Tax Act. For instance, for...
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Best tax Saving Investment scheme ELSSs

Tax saving mutual funds or Equity linked Saving Schemes (ELSS) help you to save income tax under section 80C of the Income Tax Acts . You can invest a maximum of Rs 1.5 Lakh in ELSSs and claim tax deductions on your investments every financial year. Are you Interested? Before procedding further, you should first familiarise yourself with ELSSs. Tax Saving mutual funds or ELSSs invest in stocks. Therefore, they have very high risk. You should be aware of this aspect, expecially if you are a first-time investor in equity mutual funds. Compared to your usual investments like Public Provident Fund, ELSSs do not offer gauranteed returns. You may even suffer losses in a bad market. why should you invest in ELSSs? One, These schemes have the potential to offer higher returns. As you know, these schemes invest in stocks. And stocks typically offer higher returns over a long period of time. For example, the ELSS category offered an average return of around 15% over 10 years. ...
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Location: New Delhi, Delhi, India
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Income Tax India Notifies New Form for Taxpayers Filing Updated Tax Returns

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India’s income tax (IT) department has notified a new form, ITR-U , for taxpayers filing their updated tax returns. The move seeks to reduce lengthy adjudication timelines and use of resources for improper tax filing and is based on the self-assessment of taxpayers. What is the new ITR form? In the new form, ITR-U , the taxpayer will need to provide the exact reason for filing the updated income tax return (ITR) and the amount of income liable to tax. However, they will not be required to provide a break-up of that income. When would taxpayers need to file ITR-U? Some of the reasons for filing the updated tax return include incorrect reporting of income, Reduction of carried forward loss, choosing the wrong heads of income, reduction of unabsorbed depreciation, reduction of tax credit under Section 115JB/115JC, wrong rate of tax when filing the original ITR , etc. What is the period during which ITR-U can be filed? ITR-U will be available for filing upda...
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Extended Due date of filing TDS belated ITR Filing

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  There is a big relief news for those filing Income Tax Return. The government has extended the tax compliance and Income Tax Return deadline to May 31 for the financial year 2020, in view of the rising outbreak of the Corona epidemic. Taxpayers can also file Revised Return for FY 2020. Income Tax Return, Tax compliance deadline increased The  Central Board of Direct Taxes – CBDT said that in view of the current situation of the Corona crisis, the government has decided to extend some important dates in view of the suggestions of taxpayers, tax consultants and other parties. CBDT said that many people had appealed for exemption in tax compliance. After this, the government extended the  deadline for tax compliance to 31 May . This includes filing delayed or revised returns for the financial year 2019-20. Delay till 31 May 2021 The CBDT said that the revised filing date for A. Y. 2020-21 was earlier 31 March 2021, which has been increased to 31 May 2021. Also, in cases wh...
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Location: Sector- 4, Dwarka, New Delhi, 110075, Sector 4, Dwarka, Delhi, 110075, India
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