Tax Benefits and Efficient Tax Saving Calculators
Most people think that they need to pay tax on any income earned by them. However, this is not accurate, as there are different tax brackets and there are certain incomes that do not entail payment of any taxes.
Section 10 of the Indian Income Tax Act provides a list of such incomes. Some of these include agricultural income, interest on savings accounts, and receipts from a Hindu undivided family.
Income earned through the national pension scheme, long-term capital gains, and gratuity income is also not taxable. If you have opted for voluntary retirement or received any award or scholarship too, there is no tax liability.
Browse the Internet
The Internet is an excellent source for any kind of information. You can use your favorite search engine to find a large number of such resources. You can also use internet searches to find a reliable tax calculator that will help you understand your income tax liability.
Finding the Best Online Tax Calculator
There are several resources that can be found online. To choose the best online tax calculator, you can read the feedback provided by other users. Comments and feedback offered on independent review sites give you a reliable way to calculate your income tax liability.
Different Types of Calculators
· Pension Calculator — This provides an estimate on the monthly pension and retirement corpus you can create if you start investing in the scheme. Based on the monthly invested amount, age, and expected return on investment (ROI), you can understand the future amount and current, NPS tax benefit.
· Lifestyle Calculator — Using this tool, individuals can assess the monthly investment that is required to sustain current standard of living after they retire. The calculator uses factors like age, current monthly expenditure, life expectancy, inflation, and ROI to provide this information.
· Tax Calculator — This tool allows you to determine the estimated tax benefits you can enjoy if you commence investing in the national pension scheme. Using your age and monthly amount, the potential tax savings can be determined.
This information should help you make better-informed decisions when it comes to investments for tax savings.