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Income Tax Calculator – Calculate Tax on Your Income
About this calculator
Use the Income Tax Calculator – Calculate Tax on Your Income to quickly estimate results. Enter the inputs and review the calculated output below. This tool is for guidance and educational purposes only.
More about this tool
Income Tax Basics
Income tax is a direct tax levied by the Government of India on income earned during a financial year (April 1 to March 31). Tax rates differ for different income slabs. Certain deductions like Section 80C and exemptions reduce your tax liability. Understanding your tax obligation helps in better financial planning. Use this tax estimator to check different deduction options and their effect on take-home p (truncated)
Old vs New Tax Regime (FY 2024-25)
The new regime is now the default from FY 2023-24 onwards. It offers lower slab rates but removes most deductions and exemptions like 80C, 80D, HRA, and LTA. The old regime keeps all deductions but with higher slab rates. Use this calculator to compute tax under both regimes and choose the one that results in lower tax. Salaried individuals can switch between the two every financial year.
New Regime Income Tax Slabs (FY 2024-25)
Under the new regime: 0% up to Rs. 3 lakh, 5% from 3–7 lakh, 10% from 7–10 lakh, 15% from 10–12 lakh, 20% from 12–15 lakh, and 30% above 15 lakh. Standard deduction of Rs. 75,000 is available to salaried taxpayers. A rebate under Section 87A makes tax zero for total income up to Rs. 7 lakh. No other major deductions apply.
Old Regime Income Tax Slabs
Under the old regime: 0% up to Rs. 2.5 lakh, 5% from 2.5–5 lakh, 20% from 5–10 lakh, and 30% above 10 lakh. For senior citizens (60+), the exemption limit is Rs. 3 lakh, and for super seniors (80+) it is Rs. 5 lakh. Section 87A rebate makes tax zero for total income up to Rs. 5 lakh. All traditional deductions and exemptions are available.
Section 80C Deductions
Available only under the old regime. You can claim up to Rs. 1.5 lakh per year by investing in EPF, PPF, ELSS mutual funds, 5-year tax-saving FD, NSC, Sukanya Samriddhi, life insurance premium, home loan principal repayment, children's tuition fees, and NPS Tier 1 (in addition to the extra 80CCD(1B) limit of Rs. 50,000).
HRA Exemption Rules
House Rent Allowance exemption is the lowest of: actual HRA received, 50% of basic salary in metro cities (40% in non-metros), or actual rent paid minus 10% of basic salary. To claim, you need rent receipts and the landlord's PAN if annual rent exceeds Rs. 1 lakh. HRA is not available under the new regime — this alone often makes the old regime more attractive for city renters.
Standard Deduction
Salaried employees and pensioners can claim a standard deduction of Rs. 50,000 under the old regime and Rs. 75,000 under the new regime from FY 2024-25. This is a flat deduction — no documentation or investment required. It is subtracted from gross salary before applying the slab rates.
Section 80D – Health Insurance
Available only under the old regime. Self/family premium up to Rs. 25,000 (Rs. 50,000 if any insured is 60+). Parents' premium up to Rs. 25,000 (Rs. 50,000 if parents are 60+). Preventive health check-up up to Rs. 5,000 within the above limits. A family with senior-citizen parents can claim up to Rs. 1 lakh per year under this section.
Section 24 – Home Loan Interest
Under the old regime, interest paid on a home loan for a self-occupied property is deductible up to Rs. 2 lakh per year. For a let-out property, the full interest paid is deductible against rental income (with a loss cap of Rs. 2 lakh per year to be set off against other income). Under the new regime, this benefit is available only for let-out properties, not for self-occupied homes.
Capital Gains Tax
Long-term capital gains from listed equity shares and equity mutual funds held over 12 months are taxed at 12.5% beyond Rs. 1.25 lakh per year. Short-term gains are taxed at 20%. Long-term gains from real estate held over 24 months are taxed at 12.5% without indexation (or 20% with indexation for properties bought before July 2024, as per taxpayer choice). Debt fund gains are taxed at slab rates regardless of holding period.
How to Choose the Right Regime
The new regime is usually better if your deductions (80C + 80D + HRA + home loan interest + NPS) together are below about Rs. 2.5–3 lakh. The old regime wins for taxpayers maximizing all deductions. Use this calculator to compute tax under both regimes with your exact numbers before you declare your choice to your employer at the start of the financial year.
Frequently asked questions
Which tax regime should I choose — old or new?
The new regime is better if your total deductions (80C + 80D + HRA + home loan interest + NPS) are below about Rs. 2.5 to 3 lakh. The old regime wins if you claim all available deductions. Use our calculator to compute tax under both.
What is the Section 87A tax rebate?
Under the new regime, total tax is zero for income up to Rs. 7 lakh due to the Section 87A rebate. Under the old regime, the rebate applies up to Rs. 5 lakh of total income.
Is the standard deduction available under the new regime?
Yes, from FY 2024-25 onwards, salaried taxpayers can claim a Rs. 75,000 standard deduction under the new regime (Rs. 50,000 under the old regime).
Can I switch between tax regimes every year?
Salaried individuals without business income can switch between old and new regimes every financial year. Those with business or professional income can switch only once and then must stick with the choice.