Top Benefits of Using an Online Income Tax Calculator

Proper planning is key to achieving your financial goals and an income tax calculator can help greatly in this regard. As per the new union budget, one can file taxes under both the old as well as the new regime. An income tax calculator allows one to understand their tax obligation under each of the different regimes. The calculator requires users to input basic information, such as their annual salary, monthly expenses, tax-saving instruments they have invested in, etc. Other than giving you your tax obligation under both tax regimes, the tax calculator also suggests tax-saving options that you can use to save on your taxes. In this article, we look at why tax-payers should use an income tax calculator and how can the calculator prove useful for them. Let us look at its advantages and reasons why one should use an income tax calculator.

You Can Use These Calculators Anytime and From Anywhere

Income tax calculators are easily available online these days. Just search for them and you will get at least a few different options. All you need is a smartphone, tablet or laptop and an internet connection to use these calculators.

They Are Simple and Easy to Use

Income tax calculators are easy and simple to use. They require you to enter some basic information, which almost everyone has access to. Thus, even those who have no idea of how the Indian tax system works can use this calculator to calculate their EMI obligation each month.

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They Help with Financial Planning

Majority of people in India know nothing about tax-saving instruments, such as tax-saving mutual funds, FDs, ELSS scheme, home loan tax benefits, etc. Many income tax calculators not only calculate an individual's income tax liability for the year but also advise them on what investments they can do to save tax each month. This way, income tax calculators help with financial planning.

Income Tax Calculators are Quick

Calculating tax manually is a difficult task, one that should ideally be left to experts. The good thing about income tax calculators is that they perform all the complicated calculations and tell a user their tax liability within seconds. 

They Allow You to Understand What Factors Affect Your Taxes

Income tax calculators also offer educational value. They tell a user what factors affect their income taxes and how they can use this information to save taxes. 

You can use an income tax calculator at the starting of the year to understand your tax liability for the year and make investments accordingly. This will not only help you invest in the right places but also allow you to save enough money each month or even out your tax deductions through the year so that paying taxes at the end of the year does not feel like a burden.

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