Income Tax Calculator 2021-22 (AY 2022-23) – With Exemptions and New Tax Regime

Calculate Income Tax in Old Regime (Wtih exemptions at higher Income Tax Slab) and in New Tax Regime (No tax exemptions with lower Income Tax Slab) – Income Tax Calculator 2021-22

Calculate Income Tax in Old Regime (Wtih exemptions with higher Income Tax Slab) and in New Tax Regime (No tax exemptions with lower Income Tax Slab) – Income Tax Calculator 2020-21 (Assessment Year 2021-22) –

GConnect Income Tax Calculator 2021-22 – As taxpayers, we will always tend to find out our correct Income Tax liability and also save income tax to the maximum extent possible by making optimum savings and avail all the deductions available.

However, reducing income tax liability using various income tax saving instruments and by availing Income Tax deductions wherever possible is possible only under Old Income Tax Regime, which is still effective for the current year.

New Income Tax Regime introduced from the year 2020-21, under Section 115 BAC with Reduced Tax Rate provides very
little room for Income Tax Savings and deductions. Even this year also, an Income Tax payer can either choose to move to New Income Tax Regime or continue to be in Old Tax Regime.

Income tax slab rates for FY 2020-21 (AY 2021-22) – Old Income Tax Regime

Income Tax Slab	Existing Regime Slab Rates for FY 20-21 (AY 21-22)			New Regime Slab Rates for FY 20-21 (AY 21-22)
	Resident Individuals & HUF < 60 years of age & NRIs	Resident Individuals & HUF > 60 to < 80 years	Resident Individuals & HUF > 80 years	Applicable for All Individuals & HUF
Rs 0.0 – Rs 2.5 Lakhs	NIL	NIL	NIL	NIL
Rs 2.5 – Rs 3.00 Lakhs	5% (tax rebate u/s 87a is available)	NIL	NIL	5% (tax rebate of up to Rs. 12,500/- u/s 87A can be availed)
Rs. 3.00- Rs 5.00 Lakhs		5% (tax rebate of up to Rs. 12,500/- u/s 87A can be availed)	NIL
Rs. 5.00 – Rs 7.5 Lakhs	20%	20%	20%	10%
Rs 7.5 – Rs 10.00 Lakhs	20%	20%	20%	15%
Rs 10.00 – Rs. 12.50 Lakhs	30%	30%	30%	20%
Rs. 12.5 – Rs. 15.00 Lakhs	30%	30%	30%	25%
> Rs. 15 Lakhs	30%	30%	30%	30%

Income tax slab rates for FY 2020-21 (AY 2021-22) – New Income Tax Regime

Income Tax Slab	New Regime Slab Rates for FY 20-21 (AY 21-22)
Rs 0.0 – Rs 2.5 Lakhs	NIL
Rs 2.5 – Rs 3.00 Lakhs	5% (tax rebate u/s 87a is available)
Rs. 3.00- Rs 5.00 Lakhs
Rs. 5.00 – Rs 7.5 Lakhs	10%
Rs 7.5 – Rs 10.00 Lakhs	15%
Rs 10.00 – Rs. 12.50 Lakhs	20%
Rs. 12.5 – Rs. 15.00 Lakhs	25%
> Rs. 15 Lakhs	30%

If a salaried taxpayer intends to avail Income Tax deductions under Chapter VIA of Income Tax Act by way of savings in tax saving instruments such as PF Investments, Insurance premium, Housing Loan pricipal etc, then he will have to determine his Income Tax Liability under Old Income Tax Regime and in the New Income Tax Regime and choose the beneficial one for him.

How to compare Income Tax under Old (existing) and New Tax Regime.

GConnect Income Tax Calculator 2021-22 (AY 2022-23) is meant for for estimating Income Tax for Salary / Pension Income of Central Government Employees and Pensioners. The highlight of this updated income tax tool is that we can calculate Income Tax liability when all exemptions and deductions are taken in to account and also the Income Tax we have to pay when New Tax Regime under Section 115 BAC is opted.

Checkout following Link for GConnect Income Tax Calculator 2021-22 (AY 2022-23)

GConnect Income Tax Calculator 2021-22 (AY 2022-23)

The New Tax Regime introduced in the Budget this year (FY 2020-21) under Section 115 BAC of Income Tax Act, is a tax model with reduced Income Tax Rate and less exemptions. Presently, Taxpayers who are willing to opt for New Tax Regime are required to intimate Pay Drawing Authority in prior

Checkout this article to know about reduced Income Tax Rate under existing Income Tax provisions and New Tax Regime

Exemptions / Deductions not allowed when reduced tax structure under New Tax Regime is opted.

1. Standard Deduction of Rs. 50,000 available in respect of Salaried Employees and Pensioners under Section 17(2) of Income Tax Act.

2. Deductions under Chapter VIA such as Section 80C (GPF, NPS contribution by Employee, life insurance Premium, Home Loan Principal etc), 80CCD(1B) (exemption for additional contribution to NPS by employee), Section 80 D (Health insurance Premium) 80DD (exemption for expenditure towards differently abled dependent), 80DDB (Exemption for medial expenditure), 80E (Interest on Higher Education Loan), 80G (Donation) etc.

3. House Rent Allowance under Section 10 (13A)

4. HBA (Housing Loan) Interest under Section 24b

5. Leave Travel Concession (LTC) under Section 10 (5)

6. Allowances under Section 10(14)

7. Professional Tax under Section 16.

Following exemptions are allowed even if reduced income tax structure under new tax regime is opted.

1. Rebate of Tax up to Rs. 12,500/- under Section 87A in the case of taxable income is less than Rs. 5 Lakh

2. Contribution to NPS by the Employer under Section 80CCD(2)

When a Salaried Employee / Pensioner can be benefited while opting for New Tax Regime?

Though new tax regime under Section 115 BAC disallows many income tax exemptions / deductions it may still be beneficial to salaried employees who need to pay tax in higher tax bracket (viz., 30%) for considerable quantum of their taxable income and do not claim major income tax exemptions / deductions such as Section 24 (Housing loan interest), Chapter VIA deductions, HRA exemption under Section 10 etc.

How GConnect Income Tax Calculator is useful to compare Income Tax Liability under Old and New Tax Regime?

But, it is always necessary to compare the Income Tax liability under existing Income tax provisions and New Tax Regime. GConnect income tax Calculator 2020-21 estimates Income Tax under old Tax provisions (existing) as well as New Tax Regime. So comparison of Income Tax liability under both the regimes will be very easier.

How to use GConnect Income Tax Calculator 2021-22 (AY 2022-23) ?

GConnect Income Tax Calculator contains following three parts

1. Income, Deductions and Savings Entry Form

2. Income Tax Worksheet

3. Income Tax Statement for Existing Income Tax Provisions and New Tax Regime.

1. Entry Form : How to use Income, Deductions and Savings Entry Form ?

This entry form has been divided in to 6 sub parts for the ease of use. Each of these sub parts can be found in Each horizontal Tab on the top of the tool.

Horizontal Tabs in Entry Form:

a. Personal Details

b. Income

c. Deductions

d. Savings

e. Exemption on HBA Interest

f. Calculate Tax

Note:

Tool-tip:Description of each field in the entry form contains tool tip for detailed Note / explanation about the field in which value has to be entered. To have a look at the same, place the mouse pointer on the description of each field.

 

What Income Tax Provisions say?

Wherever needed, documents containing the provisions of Income Tax Act and Rules have been linked with the fields concerned so that user can go through the income tax provisions before making entry in the relevant field.

How to calculate Income Tax after making entries in the Entry Form?

Once relevant fields in the entry form is filled up go to Calculate Tax Tab and click “Calculate Income Tax Button”. Once this button is clicked, the Income Tax Worksheet available below entry form, will be filled up by the tool.

Income Tax Worksheet : How to use Worksheet in the GConnect Income Tax Tool ?

The worksheet contains month wise and head wise income, deductions, taxable income, and income tax payable.

You can edit the work sheet for any month, then revised income tax would be calculated automatically in the worksheet. This feature will be useful especially if values such as pay, hra etc change in the middle of the year due to transfer or promotion.

You can also edit the entry form again and click “Calculate Income Tax”. In that case, values for all the months will be revised in the worksheet and revised income tax will be calculated.

Income Tax Statement : How to generate Income Tax Statement ?

Once you find that values in the worksheet are correct, Click Generate Statement for preparing Income Tax Statement.

Income Tax Statement is a document to be submitted to your employer. It contains tabulated data of your income, deductions, exemptions and income tax payable.

Generate Income Tax Statement under Existing and New Tax Regime

In addition to display of Income Tax in Existing Tax provisions (Old) and New Tax Regime in the worksheet, users can also generate / print Income Tax Statement for both Old and New Regimes.  This feature would give a detailed worksheet and statement for both type of taxation methods.  By Comparing these details users can either opt for new tax regime or remain in the existing taxation provisions.

Checkout following Link for GConnect Income Tax Calculator 2021-22 (AY 2022-23)

GConnect Income Tax Calculator 2021-22 (AY 2022-23)