An income tax calculator is a tool that helps individuals estimate the amount of income tax they need to pay based on their taxable income, deductions, and other relevant factors. It takes into account the applicable tax rates and rules to provide an approximation of the tax liability. Many countries have their own income tax calculators provided by the government or private organizations to assist taxpayers in planning and understanding their tax obligations.

An income tax calculator can be helpful in several ways:

1. Tax Planning: It allows you to estimate your tax liability in advance, which helps you plan your finances accordingly. By inputting different income and deduction scenarios, you can see how they affect your tax burden, allowing you to make informed decisions about investments, expenses, and other financial matters.

2. Budgeting: Knowing your estimated tax liability can assist you in budgeting and managing your personal or business finances effectively. It helps you set aside the necessary funds to meet your tax obligations, preventing any unexpected financial burdens.

3. Tax Filing: When it's time to file your tax return, an income tax calculator can serve as a reference point. By having an idea of the amount you owe or the refund you can expect, you can compare it to the final calculations on your official tax return. This helps you identify any discrepancies and ensures accuracy when filing your taxes.

4. Understanding Tax Impact: The calculator can help you understand the impact of different income levels, deductions, credits, and other factors on your tax liability. By experimenting with various scenarios, you can gain insights into how specific financial decisions might affect your taxes, enabling you to make more informed choices.

It's important to note that an income tax calculator provides estimates and should not be considered as a substitute for professional tax advice. The calculations may not consider all relevant factors, so consulting with a tax professional or using official tax software is recommended for accurate filing.

Sections 80C through 80U of the Income Tax Act of 1961 allow for tax-saving deductions, which must be completed under the previous tax code. You can exclude these investments from your taxable income prior to paying taxes.

• The standard deduction for employees is Rs 50,000.

• LTA exemption for those who are paid a salary for travel

• Under section 80C, either an individual or a HUF (Hindu Undivided Family) may claim a tax deduction of up to Rs. 1.5 lakh.

• Section 80D allows for a deduction for medical costs.

• A self-occupied home loan's interest can be written off up to Rs. 2 lakh.

• deduction for student loan interest under section 80E

• Section 80G of the tax code allows charitable gifts.

• Tax deduction of up to Rs. 10,000 on interest on savings accounts