Income Tax Calculator
Calculate your income tax liability for both old and new tax regimes. Includes deductions, tax breakdown, and effective tax rate calculation.
Income Tax Calculator
About This Calculator
Income Tax Calculator helps you calculate your tax liability under both the old and new tax regimes introduced by the Government of India. Choose the regime that suits your financial situation best.
Our calculator considers all major deductions under the old regime and provides a comprehensive breakdown of your tax liability with visual representation.
Tax Regimes Comparison:
Old Tax Regime:
- Higher tax rates but allows deductions
- Section 80C deductions up to ₹1,50,000
- HRA, LTA, and other allowances
- Standard deduction of ₹50,000
New Tax Regime:
- Lower tax rates but no deductions
- Simplified tax structure
- No Section 80C, 80D benefits
- Higher basic exemption limit
Tax Slabs (2023-24):
Old Regime:
- Up to ₹2.5L: 0%
- ₹2.5L - ₹5L: 5%
- ₹5L - ₹10L: 20%
- Above ₹10L: 30%
New Regime:
- Up to ₹3L: 0%
- ₹3L - ₹6L: 5%
- ₹6L - ₹9L: 10%
- ₹9L - ₹12L: 15%
- ₹12L - ₹15L: 20%
- Above ₹15L: 30%
Features:
- Both tax regime calculations
- Comprehensive deduction support
- Visual tax breakdown chart
- Effective tax rate calculation
- Shareable calculation links
Frequently Asked Questions
How is income tax calculated in India?
Income tax in India is calculated based on your taxable income and the applicable tax slab rates. First, calculate your gross total income from all sources (salary, business, capital gains, house property, other sources). Then subtract eligible deductions under various sections (80C, 80D, etc.) to arrive at taxable income. Apply the tax rates based on your chosen regime (old or new).
What is the difference between old and new tax regime?
The old tax regime offers higher tax rates but allows various deductions (80C, 80D, HRA, LTA, etc.). The new tax regime has lower tax rates but most deductions are not allowed. The new regime is beneficial for those without significant investments/loans, while the old regime benefits those with substantial deductions. Compare both using our calculator.
How much income is tax free in India?
Under the old regime, income up to ₹2.5 lakh is tax-free for individuals below 60 years. Under the new regime, income up to ₹3 lakh is tax-free. Additionally, under Section 87A, if your taxable income is up to ₹5 lakh (old regime) or ₹7 lakh (new regime), you get a full tax rebate, effectively making it tax-free.
What deductions are available under Section 80C?
Section 80C allows deductions up to ₹1.5 lakh per year for investments in: EPF/PPF contributions, ELSS mutual funds, 5-year tax-saver FDs, NSC, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme, life insurance premiums, home loan principal repayment, children's tuition fees, and NPS contributions (up to ₹50,000 under 80CCD(1B)).
Is 7 lakh income tax free in new regime?
Yes, under the new tax regime (Budget 2023), income up to ₹7 lakh is effectively tax-free due to the rebate under Section 87A. If your taxable income is ₹7 lakh or less in the new regime, you pay zero tax. This is a significant benefit compared to the old regime where the rebate limit is ₹5 lakh.
How can I save tax on salary?
Optimize your salary structure by maximizing tax-free components (HRA, LTA, food coupons, mobile reimbursements). Invest ₹1.5 lakh under Section 80C (PPF, ELSS, FD). Get health insurance (₹25,000 deduction under 80D). Claim home loan interest (₹2 lakh under Section 24). If you have a home loan, consider keeping it to claim interest deduction in the old regime.
What is TDS and how is it deducted?
TDS (Tax Deducted at Source) is tax collected by the payer when making certain payments like salary, interest, rent, etc. Employers deduct TDS from salary based on your projected annual income. Banks deduct 10% TDS on FD interest exceeding ₹40,000/year (₹50,000 for seniors). You can claim credit for TDS when filing ITR.
When should I file income tax return?
The due date for filing ITR is July 31 of the assessment year (for non-audit cases). For FY 2025-26 (AY 2026-27), the due date is July 31, 2026. Late filing attracts penalties: ₹1,000 if income is up to ₹5 lakh, ₹5,000 if income exceeds ₹5 lakh. You can also file a belated return by December 31 with additional penalties.
What is HRA exemption?
HRA (House Rent Allowance) exemption is available if you live in rented accommodation. The exempt amount is the least of: 1) Actual HRA received, 2) 50% of basic salary (40% for non-metro cities), 3) Rent paid minus 10% of basic salary. You need rent receipts and PAN of landlord if rent exceeds ₹1 lakh/year. Our HRA calculator can help compute this.
Can I switch between old and new tax regime?
Salaried individuals can switch between old and new tax regimes every financial year when filing ITR. However, if you have business income, you can switch only once in your lifetime. It's advisable to calculate tax liability under both regimes using our calculator and choose the one that results in lower tax.