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Income Tax Calculator

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Which Financial Year do you want to calculate taxes for?

FY 2023-2024 Latest Budget (Return to be filed between 1st April 2024 - 31st March 2025)FY 2022-2023 (Return to be filed between 1st April 2023 - 31st March 2024)

Your age

0 to 6060 to 8080 & above
Next Step

Paytm's income tax calculator is designed to enable people to have easy access to basic tax calculation. It does not claim to give accurate tax calculation in all circumstances

Income tax planning is an important part of financial planning for everyone. Saving on income taxes is one method that can help you create an effective financial plan. Everyone nowadays is aware of income tax and their tax liability, and as a result, people are eager to calculate their income tax. Use our Income Tax Calculator to determine your tax liability/estimates as well as your tax refund.

What is a Paytm income tax calculator?

An income tax calculator is a web-based application that assists taxpayers with basic tax calculations. Individuals can calculate their income tax liability in a modern and convenient manner by using an income tax calculator. The Paytm income tax calculators are available for free and can be used to calculate one's income tax.

A Paytm income tax planning with an income tax calculator allows you to take full advantage of deductions, exemptions, reliefs, and rebates and thereby lowering your tax liability.

How to use the Paytm income tax calculator?

An income tax calculator is a tool that allows you to calculate your income tax and total tax liability. This is calculated using your annual income, applicable income tax slab, and the deductions available under Sections 80 C and 80D. The income tax calculator also suggests investment options based on your financial portfolio, its benefits, and its ability to reduce your tax liability.

Here is the step-by-step procedure to use Paytm Income Tax Calculator online:

Step 1: Enter Annual Income: Enter the details of your income earned under various income categories, such as salary, interest income from deposits, capital gain, house rent, and other taxable income.

Step 2: Enter Exemptions: Enter the details of the exemptions available against the income earned during the fiscal year. This exemption applies to salary, self-occupied and rented property.

Step 3: Tax Deductions: Describe the deductions available under Section 80C for investments and expenses, health insurance, NPS, education loans, and donations.

Step 4: Basic Information: Enter your age and the amount of taxes you paid during the fiscal year. Your age will help determine the amount of tax owed.

Step 5: Taxation In this step, the calculator computes the total tax under both the new and old schemes. It also determines how much more money must be invested in order to effectively save taxes. Furthermore, taxpayers can go back in time and change the values as necessary.

Deductions Involved in Income Tax Calculation

  • Section 80C
  • Section 80D Mediclaim
  • Home Loan (Section 24B)
  • House Rent Allowance

You must enter your investments that qualify for income tax deductions under the following categories after entering your annual income into the Income tax calculator:

Section 80C

Section 80C includes certain instruments in which you can invest and save up to Rs. 45,000 per year, depending on your tax bracket. These instruments include public provident funds (PPF), term insurance plans, unit-linked insurance plans (ULIPs), and National Saving Certificates, bank fixed deposits (FDs), equity-linked savings schemes (ELSS). If you invest in all of these instruments, you can deduct a maximum of Rs. 1.5 lakh from your gross total income or taxable income.

In addition, the section allows for an additional deduction of up to Rs. 50,000 against the amount invested in a new pension scheme (NPS). However, in order to make the best use of these instruments for claiming deductions under the Income Tax Act, it is necessary to understand them thoroughly.

Section 80D mediclaim

This income tax section allows you to deduct medical expenses for yourself or dependent family members. However, a maximum of Rs. 35,000 can be claimed as an income tax deduction under Section 80D. This includes a maximum of Rs. 25,000 for self and dependent family members, as well as Rs. 25,000 for parents. If your parents are over the age of 60, their maximum deduction is Rs. 30,000. The benefit under Section 80D is in addition to the Rs. 1.5 lakh deduction under Section 80C.

There are primarily four types of health insurance policies to choose from. Critical illness plans, hospitalisation plans, medical insurance plans, super top-up plans, and are among them.

Home loan (Section 24B)

According to this section, any amount paid as interest on a home loan up to Rs. 2,00,000 during that financial year can be claimed as an income tax deduction from your taxable income.

House rent allowance

According to the Income Tax Act of 1961, the amount you pay for house rent is also deductible from your taxable income. However, only the smallest of the three amounts listed below is eligible for the exemption:

  1. Received actual house rent allowance (HRA)
  2. Actual rent paid less than 10% of base salary
  3. 50% of your basic salary if you live in Mumbai, Delhi, Chennai, or Kolkata, or 40% if you live elsewhere.

This amount is in addition to the exemptions and deductions allowed under Sections 80C, 80D, and 24B.

Frequently Asked Questions


What is the tax percentage formula?
Add the total tax payable and the total net taxable income to get the tax percentage. Total tax payable divided by total net taxable income for the fiscal year is the formula for calculating tax percentage. In the financial year 2021-22, for example, the net taxable income is Rs 12,00,000, and the total tax payable is Rs 1,19,000. The tax percentage is calculated by dividing the total tax payable by the net taxable income, which is Rs 1,79,000/Rs 12,00,000, or 14.92%.
How to calculate my monthly taxable income?
Total monthly taxable income is calculated by dividing total annual taxable income by 12 months. You can calculate your net taxable salary using Paytm's income tax calculator. You simply need to provide your salary information. The calculator will determine your taxable income and net tax liability for the financial year.
How is the amount of tax deducted from a salary calculated?
The total salary received, exemptions, deductions, investments, and tax slab all play a role in determining the tax deduction from salary. Exemptions, deductions, and investments are taken out of the total salary. The basic tax exemption is then granted on the net salary, and the remaining income is taxed.
What exactly is taxable income?
The amount of money used to calculate the income tax that an individual or business owes the government in a given tax year is referred to as taxable income. Wages, salaries, bonuses, commissions, and tips are all examples of taxable income. It is critical to understand one's total taxable income because it allows taxpayers to calculate the final payable income tax or refundable tax by applying the applicable tax rates and deducting the taxes that have already been paid.
How is TDS calculated on salary?
The TDS is calculated based on the individual's current CTC, which includes various elements such as basic salary, special allowance, dearness allowance, medical allowance, and more.
How can I save as much tax as possible on my salary?
You can save income tax by investing in tax-exempt products. Section 80C allows you to save up to Rs 1.5 lakh. Section 80C products include NSC, Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS mutual funds), and 5-Year Fixed Deposits (FDs), National Pension Scheme (NPS), and Senior Citizen Savings Scheme (SCSS). NPS and SCSS are suitable for retirement planning. Second, there is no limit on the repayment of an education loan.
How do i calculate my income tax return?
You will receive a refund if the tax payable is less than the taxes already paid during the tax year. A salaried taxpayer typically receives a refund if either deduction are not taken into account or he or she earns less than the estimated income.
What is the maximum amount that is not taxable?
The maximum non-taxable income for an individual is set at Rs.2.5 lakh. However, if your total taxable income is less than Rs. 5 lakh, you may be eligible for an Rs.12,500 rebate under Section 87A of the Income Tax Act. Thus, from FY 2019-2020, an individual earning less than Rs.5 lakh will not be required to pay income tax.
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