Income Tax Calculator India
Calculate your income tax liability under old and new tax regimes. Compare tax savings and plan your finances better.
Basic Information
Income Details
10L
Investments & Deductions (Old Regime)
Max: ₹1.5 lakh
Max: ₹25,000
Max: ₹10,000
Max: ₹2 lakh
Old Tax Regime
New Tax Regime
New Regime saves you ₹0
Recommended:
- • Maximize Section 80C investments (EPF, PPF, ELSS)
- • Pay health insurance premiums for family
- • Pay principal component of home loan
- • Claim HRA exemption if living in rented house
- • Invest in NPS for additional deduction under 80CCD(1B)
How to Use Our Income Tax Calculator
Our calculator helps you compare tax liability under old and new tax regimes:
- Basic Information: Enter your age and residential status.
- Income Details: Provide your gross salary, income from other sources, and exempt income.
- Investments & Deductions: Enter your investments under Section 80C, health insurance premiums, HRA details, etc.
- Compare Results: See your tax liability under both regimes and choose the better option.
The calculator will instantly show your net taxable income, tax liability, and take-home salary under both regimes.
Understanding Indian Income Tax Regimes
Old Tax Regime
- • Higher tax rates with multiple slabs
- • Eligible for various deductions and exemptions
- • Section 80C, 80D, HRA, LTA, etc. available
- • Standard deduction of ₹50,000 for salaried employees
- • More complex but potentially beneficial with investments
New Tax Regime
- • Lower tax rates with simplified slabs
- • Limited deductions and exemptions
- • Standard deduction of ₹50,000 only
- • No HRA, LTA, or other specific exemptions
- • Simpler calculation but fewer tax-saving options
Key Deductions Under Old Tax Regime
Section 80C (Up to ₹1.5 lakh)
- Employee Provident Fund (EPF)
- Public Provident Fund (PPF)
- Equity Linked Savings Scheme (ELSS)
- National Savings Certificate (NSC)
- Life Insurance Premiums
- Principal repayment of home loan
- Tuition fees for children
Other Important Deductions
- Section 80D: Health insurance premiums (Up to ₹25,000/₹50,000)
- Section 80TTA: Interest on savings account (Up to ₹10,000)
- Section 24: Home loan interest (Up to ₹2 lakh)
- HRA Exemption: Based on actual rent paid
- Standard Deduction: ₹50,000 for salaried employees
Income Tax Slabs for FY 2023-24 (AY 2024-25)
Old Tax Regime
| Income Range | Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh - ₹5 lakh | 5% |
| ₹5 lakh - ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Plus 4% health and education cess on tax liability
New Tax Regime
| Income Range | Tax Rate |
|---|---|
| Up to ₹3 lakh | Nil |
| ₹3 lakh - ₹6 lakh | 5% |
| ₹6 lakh - ₹9 lakh | 10% |
| ₹9 lakh - ₹12 lakh | 15% |
| ₹12 lakh - ₹15 lakh | 20% |
| Above ₹15 lakh | 30% |
Plus 4% health and education cess on tax liability
Frequently Asked Questions
What is the difference between old and new tax regime in India?
The old tax regime allows taxpayers to claim various deductions and exemptions under sections like 80C, 80D, HRA, etc., but has higher tax rates. The new tax regime offers lower tax rates but with fewer deductions and exemptions. Taxpayers can choose either regime based on which is more beneficial for them.
Which tax regime is better for me?
The better tax regime depends on your income level and eligible deductions. If you have significant investments under Section 80C, health insurance premiums, HRA exemption, etc., the old regime might be beneficial. If you have minimal deductions, the new regime with lower rates might save you more tax.
What are the standard deductions under new tax regime?
Under the new tax regime, a standard deduction of ₹50,000 is available for salaried individuals (increased from ₹40,000 in Budget 2023). This replaces several other allowances and deductions like transport allowance, medical allowance, etc.
Can I switch between old and new tax regime?
Yes, salaried individuals can choose between old and new tax regime each financial year. However, for business income, once you opt for the new regime, you cannot revert to the old regime. Government employees can choose the regime annually.
What are the common deductions under old tax regime?
Common deductions under old tax regime include: 1) Section 80C: Up to ₹1.5 lakh for investments like PPF, ELSS, NSC, etc. 2) Section 80D: Up to ₹25,000 (₹50,000 for senior citizens) for health insurance premiums. 3) HRA exemption based on actual rent paid. 4) Standard deduction of ₹50,000 for salaried employees. 5) Professional tax deduction.
Is income tax calculated monthly or annually?
Income tax is calculated annually based on your total income for the financial year (April 1 to March 31). However, employers deduct tax monthly through TDS (Tax Deducted at Source) based on your estimated annual income and tax liability.