Simplify Your Tax Calculation with Tax Calculator

Every normal individual who is working on a salary basis waits for the month end to receive his salary. He uses this salary to pay for all his and his family’s living expenses. These expenses are usually same for all households which are payments made for groceries, transport, school, and college fees, clothing, rent, house maintenance, water, electricity, etc. The salary which remains is usually saved by making investment. But what if nothing remains to be saved? What if the amount you were planning to save got deducted as a tax? What Is Tax? Tax is an amount which a taxpayer needs to pay to the government. And, the government uses this amount for funding public welfare services such as construction of roads, public transport, etc. A taxpayer can be an individual or a legal entity. Taxpayers are those people whose yearly income comes in the tax slab eligible for tax payment. This slab may or may not remain same over different financial years. In each budget, the tax slab is announced. Currently, in budget 2018, people (below 60 yrs. of age) with an annual income below Rs. 2,50,000 are exempt from tax payment. People above 60 yrs. and below 80 yrs. of age are exempt up to an annual salary of Rs. 3,00,000. People above 80 yrs. of age are given exemption up to Rs. 5,00,000 of annual salary. What Is a Calculator? A calculator is a machine that helps an individual perform complex mathematical calculations in a blink of an eye. It is a time-saving gadget. Tax Calculator Are you an individual who has just made an entry in the list of people eligible to pay tax? Has tax calculation left you with clenched teeth? To simplify this complex calculation, a gadget was invented. Yes, a calculator that can change your life for good. A calculator that tells you, how much tax you need to pay. Tax calculator has become a common tool among the regular tax payers. These calculators can help you in ascertaining the tax amount after all the necessary deductions for which you may be eligible. For ex., if you have invested in PPF or ELSS scheme of mutual fund, then you are eligible for a taxable salary deduction up to Rs. 1.5 lacs. Benefits of a Tax Calculator

• Time Saver - Tax calculator helps save time which other wise would have been consumed either by calculating or searching a correct financial advisor and consulting him.
• Convenience - Now you can calculate tax from the convenience of your home or office. You don’t have to travel to meet your advisor or complete your work in hurry.
• Cost Saver - It helps save cost as you no longer need to pay the financial advisor or a CA to calculate tax and help accordingly.
• Accuracy - These calculators provide accurate results. There is no scope of error as such.

How Can You Make Savings and Get the Tax Benefit at the Same Time? There are many options available in the market that can help you to get a deduction under Section 80C of the Income Tax Act, 1961. Such saving schemes are PPF, NSC, ELSS, pension fund, bank fixed deposits, etc. All of these schemes mostly provide nominal rate of returns along with low-risk factor. But, if you are looking for the schemes that can help you earn more returns along with tax benefits, then you can select a scheme under ELSS category of mutual funds. These schemes are also recommended by tax calculator. So, the next time you have a doubt about how much tax you are liable to pay, simply use a tax calculator and enjoy the dual benefits of high returns and tax saving by investing in a recommended tax saving scheme. After reading this article, you will get know about tax calculator and the various benefits it can provide.