Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax. Income tax can be paid either as tax deducted at source while disbursement of monthly salary, or through the income tax returns portal managed by the Central Board of Direct Taxes (CBDT). The provision for online payment of taxes is to ensure individuals pay their stipulated dues on any earnings generated from other sources.
Individuals can determine the total tax expenses through an online income tax calculator. Such tools take into account the following pointers to reflect the actual tax liability of a resident or non-resident Indian at the end of a financial year –
Entering accurate data regarding the above mentioned pointers will demonstrate the total tax liability of individuals. Minus the taxes already paid through TDS, the remaining can be deposited directly online through the official portal Challan 280. If, in any event, the taxes paid exceed the total liability, the difference is reimbursed by the government within 30 days of filing for the same.
For the assessment year 2019-20, any individual eligible for tax returns or any additional tax payable has to file for the same within 31st March 2020.
Income tax slabs show the total tax rate payable by individuals, based on their annual earnings from various sources combined.
| S. No. | Total annual earnings (Rs.) | Tax rate |
| 1. | 0-2.5 lakh | Nil |
| 2. | 2.5 lakh- 5 lakh | 5% of income exceeding Rs. 2.5 lakh |
| 3. | 5 lakh – 10 lakh | 20% of income exceeding Rs. 5 lakh + Rs. 12,500 |
| 4. | Above 10 lakh | 30% of income exceeding Rs. 10 lakh + Rs. 1,12,500 |
| S. No. | Total earnings (Rs.) | Tax rate |
| 1. | 0-3 lakh | Nil |
| 2. | 3-5 lakh | 5% of income exceeding Rs. 3 lakh |
| 3. | 5-10 lakh | 20% of income exceeding Rs. 5 lakh + Rs. 10,000 |
| 4. | Above 10 lakh | 30% of income exceeding Rs. 10 lakh + Rs. 1,10,000 |
| S. No. | Total earnings (Rs.) | Tax rate |
| 1. | 0-3 lakh | Nil |
| 2. | 3-5 lakh | 5% of income exceeding Rs. 3 lakh |
| 3. | 5-10 lakh | 20% of income exceeding Rs. 5 lakh + Rs. 10,000 |
| 4. | Above 10 lakh | 30% of income exceeding Rs. 10 lakh + Rs. 1,10,000 |
These rates are applicable for the assessment year 2020, during which taxes for the year 2019-20 are determined. Additionally, health and education cess at 4% are levied on the total tax rate, above the total amount payable. A surcharge is also applied on total taxable income at the following rates –
However, income tax calculator 2020 takes into account the various deductions/exemptions under the Income Tax Act of 1961.
Section 87A – Income below Rs. 5 lakh is eligible for a tax rebate of up to Rs. 12,500.
Section 80C – Rebate of up to Rs. 1.5 Lakh in any tax-saver fixed deposits, public provident funds, national savings certificate, unit-linked insurance plans, and equity-linked savings schemes on the interest income.
Section 80CCD (1B) – Tax exemption of up to Rs. 2 lakh for money deposited in the national pension system.
Section 80D – Up to Rs. 25,000 tax exemption on medical insurance premium bills. The limit rises to Rs. 50,000 for senior citizens.
Section 80G – Any donations made to charitable organisations is fully exempt from tax calculations.
Section 80TTA/80TTB – Interest income from savings accounts is eligible for tax waivers up to Rs. 10,000. For senior citizens, all forms of interest income up to Rs. 50,000 are fully waivered from tax calculations, under Section 80TTB.
Section 80GG – Tax exemption on income spent towards paying house rent (house rent allowance.)
Keeping all such expenditures in mind, individuals can use an online tax calculator available on the official website of .
Individuals can go through their TDS certificates to determine the taxes already paid. Employees are often issued Form 16 from their respective employers, showcasing total salary and taxes deducted thereon. However, income accrued from other sources, such as interest income from various investments, rental income if any, royalties, etc. have to be incorporated in the calculation of total tax liability.