To calculate your taxable income, here are some steps through which you can easily assess the amount you owe:

• Choose the financial year for which you want your taxes to be calculated.

• Select your age accordingly. Tax liability in India differs based on the age groups.

• Click on 'Go to Next Step'

• Asses your Gross Income: First, make a note of your annual gross salary. All of your compensation will be added in this, including your House Rent Allowance (HRA), Leave Travel Allowance (LTA), and other benefits like meal vouchers and mobile reimbursements. After this, calculate and use the exemptions from the salary components that are provided by the Income Tax department to further decrease your gross income, if relevant. The exemptions include HRA and LTA. Notably, the HRA exemption is only applicable if you live in rented apartments and submit receipts as proof. You can calculate your HRA by using an online HRA calculator.

• Deductions under Income tax: After calculating your taxable income, you can further reduce it by incorporating some deductions. A standard deduction of Rs 50,000 is done from your gross income. Next, minus investments and expenses eligible for section 80C. Under 80C comes investment, savings, money spent on specific things or policies that give you tax benefits. Some of the most popular ways to claim this deduction are investments in PPF, ELSS Mutual Funds, EPF, Sukanya Smriddhi Yojana, and premiums paid for term insurance. To know more about the deduction amount, visit the income tax website.

• Net Taxable Income: After deductions and exemptions, your net taxable income is derived. On this income, you are asked to give tax on the basis of tax slabs. As per the new tax regime, there is no income tax rate on the taxable income of 3 lakhs or lower. Similarly, for income of between Rs 3 lakh and 6 lakh, the tax rate will be 3 percent of it. It increases subsequently.

• Additions in the taxable income: Tax rebates are a type of tax benefit offered by the government to those with incomes below a certain threshold. If your total taxable income after deductions is less than Rs 5 lakh, you are eligible to apply for Rs 12,500 rebate under Section 87A. But if exceeds, then you need to add the health and education cess of 4 percent to your tax amount.