19 feb Tax Calculator 2020-21
The tax Calculator will help you to determine your revenue taxation for economic 12 months FY2019-20 (AY2020-21).
Just How To make use of Tax Calculator
understand the distinction between deduction & exemption
Before you utilize the tax calculator, you have to understand the distinction between deduction and exemption. They noise rather similar, and people that are many one for the next. But, these are generally quite various. An exemption is provided for the particular function. For instance, if you may be a farmer, agricultural earnings is exempt from taxation. When you yourself have a bank family savings, interest earnings regarding the account is exempt from income tax as much as Rs 10,000 per year.
Deductions are earnings which can be excluded from your own taxable earnings under specific conditions. This amount will be deducted from your taxable income for example, if you invest Rs. 1.5 lakh in specified investments under Section 80C of the Income Tax Act. Should your total taxable earnings is Rs. 10 lakh and also you spend Rs. 1.5 lakh in Public Provident Fund (PPF), your taxable earnings then gets paid down to Rs. 8.5 lakh.