The Income Tax Calculator is an invaluable tool for all taxpayers, especially those who have multiple income sources. It allows you to estimate how much tax you will be liable for and plan your finances accordingly. With government schemes like PMAY (Pradhan Mantri Awas Yojana) and its recent launch in Odisha, it is essential to understand your tax liability before applying for housing finance to get a home loan.
PMAY is a scheme launched by the central government to provide affordable housing options to the citizens of India. It aims to provide housing for all by 2022, and the beneficiaries of this scheme can avail of subsidies on home loans. However, it is vital to understand the home loan process and apply for home loans only after calculating your tax liability. Failing to do so could result in financial difficulties in the future.
The Income Tax Calculator takes into account various factors like your income, investments, and deductions, and gives you an estimate of your tax liability. This estimate can be used to plan your finances and make informed decisions about investments and expenses.
Here’s a basic guide on how to use the Income Tax Calculator:
- Gather all the necessary information: To use the Income Tax Calculator, you will need to gather information about your income sources, investments, and deductions. This includes your salary, rental income, interest income, capital gains, deductions under section 80C, 80D, and so on.
- Open the online Income Tax Calculator: Future Generali Life Insurance has an online tax calculator where you can calculate your income tax liability.
- Enter your income details: Start by entering your income details in the given fields. This includes your salary, rental income, interest income, and any other sources of income.
- Enter investment details: Next, enter your investment details under section 80C, 80D, and so on. This includes your investments in Provident Fund, National Pension Scheme, Life Insurance Premium, and so on.
- Enter deductions: Enter the deductions you are eligible for under section 80D for health insurance, 80G for donation, and others in the given field.
- Calculate tax liability: Once you have entered all the information correctly, click on the calculate button. The Income Tax Calculator will give you an estimate of your tax liability for the financial year.
- Plan your finances: Once you know your tax liability, you can plan your finances for the year. You can make informed decisions about investments and expenses, keeping your tax liability in mind.
Using the Income Tax Calculator helps you avoid surprises at the end of the year when you file your tax return. It also helps you plan your finances efficiently, enabling you to make investments and expenses that align with your financial goals.
Conclusion
In conclusion, understanding your tax liability is crucial, especially if you are applying for housing finance to get a home loan. Government schemes like PMAY aim to provide affordable housing options to citizens, but it is best to know your tax liability before applying for it. Using the Income Tax Calculator helps you estimate your tax liability, plan your finances efficiently, and make informed decisions about investments and expenses. Use online tax calculators like Future Generali to calculate your income tax liability and know where you stand when it comes to your finances.