Every year, individuals and companies have to file their income tax returns, and the process of doing this can be through an auditing agency offering tax filing returns, through direct e-filing, or via income tax assessment officer. Now the government has laid down many steps by which filing tax returns has been simplified and made easy, so that the citizens do not have to follow a cumbersome and elaborate process to do this.
You can find out details about the various services provided by the Income Tax Department on their website. Here you will find information on how to avail a PAN card or TIN number, what forms have to be submitted for a person of a particular income level or class for filing returns, how to file returns online, and so on. Out of the many lists of services offered in the site, a key one is the calculator tool through which you can find out how much of money has to be spent on tax in the current financial year.
Features of Income Tax Calculator Offered in The Income Tax Department Site
An income tax calculator is a tool through which you can quickly determine the amount of tax that has to be paid in a year. Input details into it such as the total income gained in the year, based on which it will calculate the percent of the tax that has to be paid. It is vital to input accurate information on various sources of income; hence, you must give out the details of income gained through salary, house rental, capital gains, and income from other sources.
The tool is a detailed and comprehensive one, and it is available in the Income Tax Department Website. For example, the tool looks into various types of income sources and not just salary income. In the calculator page, you can find a box where you have to input agricultural income, long-term capital gains, short terms capital gains, and lottery winnings. It also takes into account utilization of TDS, TCS, or MAT credits when calculating the final taxable amount. Availability of this tool online enables you to access it as and when needed.
In addition to the basic calculator used to determine income tax amount, you can also find the deferred tax calculator, advance tax calculator, and TDS calculator. Each of these calculators asks for a specific type of income input which has to be specified accordingly, on the basis of which tax amounts will be shown.
The various types of calculators available in the Income Tax Department site will be used to find out what amount you have to give as tax when you are someone with various sources of income and have different types of tax laws applicable for you due to the fact that you are a partner in a company or you are running a business which is big scale and so on. Using any of the calculators available in the Income Tax Department website enables you to know exactly how much money has to be spent on taxation, based on which you can take steps to reduce the tax burden.