Income tax is a tax imposed by the government on the income of an individual in every financial year.
To calculate your income, all the income sources like salary, business income, rent, dividends, etc are considered. Every citizen of the nation or even a non-residential individual also has to pay this tax to the government if he is earning any income in India.
The govt of any country has various kinds of expenses like paying pension to govt employees, building roads and infrastructure, start various schemes for the citizens benefit etc etc. For all this, they need money and income tax is one of the ways for the govt to earn the money.
The same money eventually is used to run the nation and its development. So when we pay the income tax, we get back various facilities like roads, public parks, and poor people also get various free services in health and education.
This income tax calculator gives a comparison between the old tax regime (before 2020 budget) and new regime tax slabs.
Govt has announced the new tax slabs with reduced tax rates, but with any deductions and exemptions. One can enter their income details along with the current exemptions/deductions and find out which is a better choice for them - Old vs New tax regime.
One will also get the income tax amount calculations between both regimes.