Business

Reasons you Should be Using a Tax Calculator if you Haven’t Already

The income tax you pay plays an essential role in the country’s development as it is an important revenue source for the government. You have to pay this tax depending on various parameters like your income, age, source of income, deductions, and exemptions based on eligible investments. You can do these tedious calculations easily using the tax calculator available online, and it cuts all the hassle of manual calculations and gives accurate results.

There are endless benefits of using the automated tax calculation tool. Apart from tax, you can calculate other financial needs using tools like fixed deposit calculator and compound interest calculator online. Keep reading to know why you should be using a tax calculation tool if you haven’t already used it.

Image Source: Shutterstock

What is a Tax Calculator?

You can use a tax calculation tool to calculate the taxable income and payable tax amount. It is an online, easy-to-use tool that estimates the tax liability per the tax laws prevailing in a specific year. You need to enter information like your income, age, investment liabilities, etc.

Simple Tax Filing with Online Tool

A tax calculator helps the taxpayers calculate the tax liabilities and the following taxable income. Also, it helps assess the taxes based on different factors like tax slab deductions and rates and taxable income groups. Apart from delivering quick and accurate results, this available online tool also simplifies the planning of investments and savings. It can determine the maximum savings you can make on taxes legally.

You can easily plan long-term and short-term investments as the tax calculation tool give accurate results. Apart from calculating taxes, you can use other financial tools like compound interest calculator online to maximize your investments’ profits.

Benefits of using Tax Calculators

1. Free to Use

This online tool is available free of cost. You have to visit the tool website and enter your details. You can use it multiple times to compare various combinations and determine the payable tax per the income amount.

2. Saves Time

The tax calculator available online is an automated tool that does quick calculations. Once you have entered all the required data, the tool will instantly give you the required results. Manual calculations take a lot of time and effort in many fields and numbers. This automated, fast tool resolves your problem of calculating tax liabilities.

3. Easy Tax Planning

The Union Budget 2020 has announced two tax regimes, the old and the new regime. For the taxpayers, it has become challenging to choose one among both options. Using the tax calculation tool, you can estimate the payable tax liabilities per the regimes and choose the most profitable option.

4. Quick Calculations

Manual tax calculations can take forever, and there is no guarantee of accurate results. Even if you take help from professionals, the process might take a lot of time. To avoid all this, using the online tax calculation tool is the best to do it as it delivers instant results.

5. Accurate Method

The tool gives accurate results with minimal chances of any error. If you decide to calculate the tax liabilities manually, you have to calculate many things that might result in incorrect figures. It is better to use the automated tool where you provide the values and get accurate results.

6. Direct and Understandable Layout

Almost all financial tools available online such as the tool to calculate tax, fixed deposit interest calculator, and compound interest calculator online, are built keeping in mind the general audience. The layout of these tools is straightforward and direct to understand so that general users can do their calculations hassle-free.

You can find many tools to calculate tax online, and you need to choose one depending on the benefits and features it offers. We hope now you are aware of why you should be using the tax calculator rather than doing manual calculations. Many online sources are available where taxpayers can calculate the payable taxes based on new and old regimes and make wise decisions beforehand. These tools are easy-to-use, offer a simple layout and accurate results instantly. So, choose a tool depending on your needs and make your financial decisions wisely.

Source: http://incometax.gov.in/iec/foportal/help/individual/return-applicable-1

Related Articles

Leave a Reply

Back to top button