Income Tax Calculator
Income Tax Calculation in India: This calculator helps you estimate your income tax liability based on your income, deductions, and applicable tax regime. You can compare taxes under both old and new tax regimes introduced in Budget 2023-24.
Income and Deductions
Tax Calculator Help
Which tax regime should I choose?
The Old Regime allows various deductions but has higher tax rates. The New Regime has lower tax rates but fewer deductions.
Key Differences
- Old Regime: More deductions but higher tax rates
- New Regime: Lower tax rates but fewer deductions
Quick Tip
Our calculator shows tax results for both regimes so you can compare and choose the best option for you.
Income Tax Calculation Results
Old Tax Regime
New Tax Regime
Regime Comparison
You can save
₹0
by choosing the new regime
Tax Breakdown
Coming Soon: Advanced Income Tax Features
We're working on adding more advanced features to this calculator:
- Advance tax calculation with quarterly breakdowns
- Capital gains tax calculator (short-term and long-term)
- Tax saving optimization recommendations
- TDS credit and tax refund estimation
Income Tax Guide & Tutorial
Understanding Income Tax in India
Income tax in India is a direct tax levied on the income earned by individuals, HUFs, companies, and other entities. The tax structure in India is progressive, meaning higher income levels are taxed at higher rates.
Old Tax Regime
The traditional tax structure allows various deductions and exemptions under different sections of the Income Tax Act. While tax rates are higher, the effective tax can be reduced through strategic investments and expenses.
New Tax Regime
Introduced in Budget 2020 and modified in 2023, this regime offers lower tax rates but removes most deductions and exemptions. It's designed to simplify tax calculation and reduce the need for tax planning.
Income Tax Slabs (FY 2023-24)
| Old Regime Tax Slabs | |
|---|---|
| Income Range | Tax Rate |
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| New Regime Tax Slabs | |
|---|---|
| Income Range | Tax Rate |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
How to Calculate Your Income Tax: Step-by-Step
Determine Gross Total Income
Add all sources of income: salary, rental income, capital gains, business income, and other income sources.
Calculate Deductions (Old Regime)
Subtract eligible deductions under various sections like 80C (up to ₹1.5 lakh), 80D (health insurance), HRA, etc.
Determine Taxable Income
Subtract total deductions from gross total income to arrive at your taxable income.
Apply Tax Rates
Apply the applicable tax slab rates to your taxable income to calculate the base tax amount.
Calculate Cess
Add Health and Education Cess of 4% on the tax amount calculated.
Determine Total Tax Liability
The sum of tax amount and cess gives your total income tax liability for the year.
Common Tax Saving Instruments
Section 80C Investments (₹1.5 lakh)
- Employee Provident Fund (EPF)
- Public Provident Fund (PPF)
- Equity Linked Savings Scheme (ELSS)
- Tax Saving Fixed Deposits
- National Savings Certificate (NSC)
- Life Insurance Premium
- Sukanya Samriddhi Account
- Home Loan Principal Repayment
Other Major Deductions
- Section 80D: Health Insurance Premium (up to ₹25,000 for self and family, additional ₹25,000 for parents)
- Section 80CCD(1B): Additional NPS contribution (up to ₹50,000)
- Section 24: Home Loan Interest (up to ₹2 lakh for self-occupied property)
- Section 80E: Education Loan Interest (no upper limit)
- Section 80G: Donations to specified charitable institutions
- Section 80TTA: Interest from Savings Account (up to ₹10,000)
Frequently Asked Questions
The choice between the old and new tax regimes depends on your income level and investment patterns:
- Choose Old Regime if: You have substantial investments or expenses eligible for tax deductions (like housing loan, LIC, PPF, etc.)
- Choose New Regime if: You have minimal investments/deductions or prefer simplified tax calculations without tax planning
Our calculator compares both regimes side-by-side to help you make the best choice.
Standard deduction is a flat deduction of ₹50,000 from salary income that can be claimed by all salaried individuals and pensioners. It's available under both the old and new tax regimes. No bills or proof is required to claim this deduction.
HRA exemption is the minimum of:
- Actual HRA received from the employer
- 50% of salary (basic + DA) for metro cities or 40% for non-metro cities
- Actual rent paid minus 10% of salary (basic + DA)
Use our HRA Calculator for a more detailed calculation.
For most individuals, the due date for filing income tax returns is July 31 following the end of the financial year (April to March). However, certain categories of taxpayers have different due dates:
- Taxpayers with business income requiring tax audit: October 31
- Partners in firms that require tax audit: October 31
- Transfer pricing cases: November 30
Late filing attracts penalties, so it's advisable to file before the due date.
Section 87A provides a tax rebate to resident individuals with total income up to ₹7 lakh (after all deductions). The maximum rebate amount is ₹25,000. This means individuals with taxable income up to ₹7 lakh effectively pay zero tax under both old and new tax regimes (after the rebate).