Income Tax Calculator

Calculate your income tax under both Old and New tax regimes. Compare deductions, see slab-wise breakdown, and optimize your tax liability.

Your Tax Calculation

Note: This calculator provides estimates based on current tax laws. Actual tax liability may vary based on specific circumstances. Consult a tax professional for personalized advice.

Tax Comparison: Old vs New Regime

What is an Income Tax Calculator?

An Income Tax Calculator is an essential financial tool that helps you estimate your tax liability based on your annual income, applicable deductions, and the tax regime you choose. It enables you to compare your tax outgo under both the Old and New tax regimes introduced by the Indian government, helping you make informed decisions about which regime benefits you more.

Our comprehensive Income Tax Calculator for FY 2024-25 (AY 2025-26) lets you input your gross income, Section 80C investments, and other deductions to instantly see your tax breakdown under both regimes, including slab-wise calculations and effective tax rates.

Understanding Old vs New Tax Regime

India offers taxpayers a choice between two tax regimes, each with its own advantages:

New Tax Regime (Default from FY 2023-24)

  • Lower Tax Rates: Reduced rates across all income slabs
  • Standard Deduction: Rs 75,000 standard deduction (increased in Budget 2024)
  • Simplified Filing: No need to track multiple investments and deductions
  • No Tax up to Rs 7 Lakhs: With rebate under Section 87A

Old Tax Regime

  • Section 80C: Up to Rs 1.5 lakh deduction (PPF, ELSS, LIC, etc.)
  • Section 80D: Health insurance premium deduction
  • HRA Exemption: House Rent Allowance benefits for salaried individuals
  • Home Loan Interest: Section 24(b) deduction up to Rs 2 lakh
  • NPS Deduction: Additional Rs 50,000 under Section 80CCD(1B)

Income Tax Slabs for FY 2024-25

New Tax Regime Slabs

  • Rs 0 - Rs 3,00,000: Nil
  • Rs 3,00,001 - Rs 7,00,000: 5%
  • Rs 7,00,001 - Rs 10,00,000: 10%
  • Rs 10,00,001 - Rs 12,00,000: 15%
  • Rs 12,00,001 - Rs 15,00,000: 20%
  • Above Rs 15,00,000: 30%

Old Tax Regime Slabs (Below 60 years)

  • Rs 0 - Rs 2,50,000: Nil
  • Rs 2,50,001 - Rs 5,00,000: 5%
  • Rs 5,00,001 - Rs 10,00,000: 20%
  • Above Rs 10,00,000: 30%

How to Calculate Income Tax?

The income tax calculation involves these steps:

  1. Calculate Gross Income: Sum of salary, business income, rental income, capital gains, and other sources
  2. Apply Exemptions: HRA, LTA, and other exempt allowances (Old Regime only)
  3. Claim Deductions: Section 80C, 80D, 80G, etc. (Old Regime only)
  4. Calculate Taxable Income: Gross Income - Exemptions - Deductions
  5. Apply Tax Slabs: Calculate tax based on applicable slab rates
  6. Add Cess: 4% Health and Education Cess on total tax

Which Tax Regime Should You Choose?

The choice depends on your total deductions:

  • Choose New Regime if: Your total deductions are less than Rs 3-4 lakhs, you prefer simplicity, or you do not have home loan interest or HRA claims
  • Choose Old Regime if: You have significant deductions (80C maxed out, home loan, HRA, medical insurance), your total deductions exceed Rs 4-5 lakhs

Tax Saving Tips for Salaried Individuals

  1. Maximize 80C: Invest in PPF, ELSS, or pay life insurance premiums up to Rs 1.5 lakh
  2. Health Insurance: Claim up to Rs 25,000 (Rs 50,000 for senior citizens) under Section 80D
  3. NPS Contribution: Additional Rs 50,000 deduction under Section 80CCD(1B)
  4. Home Loan: Interest up to Rs 2 lakh deductible under Section 24(b)
  5. HRA Optimization: Ensure you claim maximum HRA if paying rent
  6. Education Loan: Full interest deduction under Section 80E

Frequently Asked Questions

Which is better - Old or New Tax Regime?
It depends on your deductions. If your total deductions (80C, 80D, HRA, home loan interest) exceed Rs 3-4 lakhs, the Old Regime may save more tax. If you have minimal deductions or prefer simplicity, the New Regime with its lower rates is often better. Use our calculator to compare both scenarios with your actual numbers.
Can I switch between Old and New Tax Regime?
Yes, salaried individuals can switch between regimes every financial year while filing their ITR. However, those with business income can switch only once in their lifetime if they opt for Old Regime after choosing New Regime. The New Regime is the default option from FY 2023-24.
What deductions are available under Section 80C?
Section 80C offers up to Rs 1.5 lakh deduction for investments in PPF, ELSS mutual funds, NSC, tax-saving FDs, life insurance premiums, children tuition fees, home loan principal repayment, and Sukanya Samriddhi Account. This deduction is only available under the Old Tax Regime.
Is there any tax rebate under Section 87A?
Yes, under the New Tax Regime, if your taxable income is up to Rs 7 lakhs, you get a full rebate under Section 87A, making your tax liability zero. Under the Old Regime, this rebate is available for taxable income up to Rs 5 lakhs.
What is the standard deduction for salaried employees?
For FY 2024-25, the standard deduction is Rs 75,000 under the New Tax Regime (increased from Rs 50,000 in Budget 2024). Under the Old Regime, the standard deduction remains Rs 50,000. This is a flat deduction available to all salaried employees without any documentation.
How is surcharge calculated on income tax?
Surcharge is an additional tax on income tax payable. Under the New Regime: 10% for income Rs 50L-1Cr, 15% for Rs 1Cr-2Cr, and 25% for above Rs 2Cr (capped at 25%). Under Old Regime: rates go up to 37% for income above Rs 5Cr. Additionally, 4% Health and Education Cess is applicable on tax plus surcharge.

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