Taxpayers pay a percentage of their income to the government for the betterment of the public at large through income tax slabs. The government categorizes this income into different groups based on the amount of income, and each of these groups is a Tax Slab. Different rates of tax change on the range of income falling under these various income tax subgroups.
The Income Tax Act of 1961 is the law that governs the provisions for our income tax. During the budget, authorities usually revise the income tax rates every year. They typically allow various deductions to a taxpayer under Section 80C, Section 80D, etc.
If you are resident individual and your total income after all eligible deductions is equal to or less than 5 lakh, then a rebate of Rs. 12500 applies to the total tax payable before 4% of Health & Education cess. If your tax payable before cess is less than Rs. 12500 then that entire amount is discounted.
The calculator is based on Income Tax brackets (IT Slabs) for fiscal year 2020 – 2021