Every salaried person contemplates their finances but ignores the crucial part, which is calculating their payable tax amount through an income tax calculator. As a rational citizen, you should be aware of where your money is being invested, how much tax amount you’re paying, and what deductions you can claim while filing your return.

This hassle task can be performed with the help of an online tax calculator that not only provides precise calculation but steers you towards various personal finance goals.

As per the newly launched union budget, taxpayers can pay their taxes under the new and old regimes. Calculating taxes and filing returns might be confusing for some, but with online income tax calculators, it becomes easy.

In this article, we will discuss the benefits of technology and how these tools can help you manage your finances.

Role of Technology in Personal Finances

Digitalisation has made it easier for investors and salaries to determine the best financial investment strategies. Various online tools, such as an SIP calculator, allow you to calculate your returns. Through this, you can decide on your financial planning and create a well-structured allocated fund.

Most importantly, technology aids novice investors by helping them decide on the best investment options with high returns. Online calculators remove all the hassle and inaccuracies of manually determining the best financial strategies. Additionally, tools such as robo-advisors, budgeting apps, and expense trackers automate personal financial management.

Tax planning is another crucial element that we often ignore due to its complexities. In such scenarios, online income tax calculators could be a great assistance.

Benefits of Online Income Tax Calculator

Manually calculating your taxable amount is very difficult as you have to precisely look through various exemptions and deductions under Section 80C, Income Tax Act 1961.

Leveraging such online income tax calculators can help you to:

• Income tax calculators are easy to use. You just need to fill out your age, enter your annual income, and mention various investments. With just a click, you’ll get a precise amount.
• Once your taxable amount has been determined, it becomes easy to plan your finances efficiently. After paying the deducted tax amount, you can allocate your funds accordingly.
• The income tax calculator not only allows you to calculate your taxable account but also gives you suggestions related to various investments. Government schemes such as Senior Citizen Saving Schemes, PPF, and medical life insurance give exemptions and deductions while paying tax.

An online income tax calculator helps you understand tax liability and guides you through your finances. Several other tools assist you in personal finance, not just tax calculators.

Smart Saving Strategies With Tax Calculator

The government has launched various schemes and sections under the Income Tax Act, such as Sections 80C, 87A, 80D, and 80E. Understanding the concept of exemptions and deductions can help taxpayers save a lot of taxes.

As per the current tax slab, the taxable amount and percentage is:

By understanding the tax slab, you could either file your tax under the new regime 2024, where you can get an exemption of Rs 75,000, or file your return under the old regime, where you will get a deduction of Rs 50,000.

Takeaway

The tax calculator helps you determine various other deductions and exemptions through which you can reduce your taxable amount and invest it accordingly. The income tax slab is revised periodically, and most of the time, the exemption schemes are also revised, which can be confusing for taxpayers.

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