Income Tax Calculator
Calculate and compare your tax liability under Old vs New tax regime for FY 2024-25
Your Tax Calculation
Complete all steps to calculate your income tax liability
Everything You Need to Know About Income Tax
Smart Tax Planning Tips
- Maximize Section 80C deductions - invest full ₹1.5 lakh limit
- Choose tax regime wisely - New regime benefits those with fewer deductions
- Claim HRA exemption if paying rent - can save significant tax
- Don't forget Section 80D for health insurance premiums
- NPS contribution under 80CCD(1B) gives extra ₹50,000 deduction
- Submit investment proofs to employer for correct TDS calculation
- Keep all receipts and documents for ITR filing
- Plan capital gains to optimize tax on investments
Old vs New Tax Regime
Old Tax Regime: Higher tax rates but allows various deductions and exemptions under sections like 80C, 80D, HRA, LTA, etc. Better for those with significant investments and deductions.
New Tax Regime (Default from FY 2023-24): Lower tax rates with simplified structure but most deductions not allowed. Only standard deduction of ₹50,000 available. Better for those with minimal deductions.
| Income Slab | Old Regime | New Regime |
|---|---|---|
| Up to ₹2.5L / ₹3L | Nil | Nil |
| ₹3L - ₹5L | 5% | 5% |
| ₹5L - ₹10L | 20% | 10% |
| Above ₹10L | 30% | 15-30% |
Frequently Asked Questions
Which tax regime should I choose?
If your total deductions exceed ₹2-2.5 lakhs, old regime is usually better. For minimal deductions, new regime offers lower tax rates. Use our calculator to compare both.
Can I switch between tax regimes?
Salaried individuals can switch between regimes every year. Business income earners can switch only once - after choosing old regime, they cannot go back to new regime.
What is standard deduction?
Standard deduction of ₹50,000 is available to salaried employees in both regimes. It reduces taxable income directly without needing any investment proof.
How is tax calculated on salary?
Tax = (Gross Salary - Exemptions - Deductions) × Applicable Tax Rate + Cess (4%). Different slabs apply based on income level and chosen regime.
What is Section 87A rebate?
If taxable income ≤ ₹5 lakhs (old regime) or ≤ ₹7 lakhs (new regime), you get rebate up to ₹12,500 or ₹25,000 respectively, effectively making tax zero.
When should I file ITR?
ITR must be filed by July 31st for salaried individuals. Even if income is below taxable limit, filing ITR is beneficial for loan applications and visa processing.
Complete Income Tax Guide
Everything you need to know about income tax planning and filing in India
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