Our advanced income tax calculator is specially designed to help regular users to calculate income tax. However, as this income tax calculator is related to financial affairs, regular user is expected to know basic terminology used by tax calculators and finance experts.
Below are the list of broad array of terms which are generally used across our website while calculating income tax.
Income Details
Income details are nothing but the money you earn in various forms like salary, income from bank deposits, rent received on house rental property, tax gains etc. All of this money comes under tax radar and you are expected to disclose all this details to pay taxes to Income Tax Department.
Deduction Details
Deduction details are the list of items which are exempted from taxable income but some rules apply. This is the exact reason why we have developed an advanced income tax calculator to help to guide while calculating taxes.
Deductions are like life insurance premium paid, rent paid, any investments made under tax saving schemes. This is a very big list coming with a set of rules that defines maximum, minimum amounts.
Taxable Income
Taxable Income is the amount which is actually taxed based on the tax brackets. This amount is calculated based on the actual income you have received minus total deductions allowed by income tax department.
Tax Brackets
Taxes are calculated based on percentages. As the taxable income goes up, generally in India by Income Tax Act, taxable percentage also goes up.
On this website TaxCal.in, we will keep on writing blogs on how to save taxes on taxing saving schemes, tax saving investments etc.