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Income Tax Calculator

Compare your tax liability under the Old vs New Tax Regime for FY 2024-25.

Income Details

Applicable only for Old Regime

Tax Comparison

Old Regime

Tax:₹ 2,17,500
Cess (4%):₹ 8,700
Total:₹ 2,26,200

New Regime

Tax:₹ 1,40,000
Cess (4%):₹ 5,600
Total:₹ 1,45,600

Recommendation: You save ₹ 80,600 with the New Regime

What is an Income Tax Calculator?

An Income Tax Calculator is a utility that helps you estimate your tax liability for a financial year. It compares the tax payable under the Old Regime (with deductions) and the New Regime (lower rates, fewer deductions) to help you choose the most beneficial option. This tool takes into account your income sources, deductions under Section 80C, 80D, HRA, and more.

How It Works

The calculator applies the income tax slab rates for FY 2024-25 (AY 2025-26) to your net taxable income. It automatically calculates the Standard Deduction (₹50,000 for Old, ₹75,000 for New) and rebate under Section 87A.

Tax = (Income in Slab * Rate) + Cess (4%) Note: Tax is calculated progressively across different income slabs.

Example Calculation

Scenario

Arjun earns ₹12,00,000 annually. He claims ₹1.5L under 80C and ₹25k under 80D.

  • 1.Gross Income = ₹12,00,000
  • 2.Old Regime: Deductions = ₹1.5L (80C) + ₹25k (80D) + ₹50k (Std Ded) = ₹2.25L
  • 3.Old Regime Taxable Income = ₹9.75L
  • 4.Old Regime Tax ≈ ₹1,06,600
  • 5.New Regime: Deduction = ₹75k (Std Ded)
  • 6.New Regime Taxable Income = ₹11.25L
  • 7.New Regime Tax ≈ ₹82,500
  • 8.Recommendation: New Regime saves ₹24,100

Why This Tool is Useful

  • Instantly compares Old vs New Tax Regime.
  • Helps you plan your investments to save maximum tax.
  • Calculates surcharge and health & education cess accurately.
  • Considers latest budget updates and tax slab changes.
  • Helps in advance tax planning to avoid penalties.

Tips & Comparison

  • Standard Deduction: Increased to ₹75,000 for the New Regime in the latest budget.
  • Section 87A: Full tax rebate for income up to ₹5 Lakhs (Old Regime) and ₹7 Lakhs (New Regime).
  • Switching Regimes: Salaried individuals can switch between regimes every year. Business owners can switch only once.
  • HRA vs New Regime: If you claim significant HRA and 80C deductions, the Old Regime might still be better.

Frequently Asked Questions (FAQs)