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Income Tax Calculator

Estimate your yearly income tax liability easily.

Income Tax Calculator

Compare Old vs New Tax Regimes (FY 2024-25)

e.g., 80C (PPF, LIC), 80D (Health Ins.), HRA, LTA. Standard deduction of ₹50K is added automatically.

Default

New Tax Regime

Standard Deduction - ₹50,000
Taxable Income ₹11,50,000
Tax Payable (incl. 4% cess) ₹0
Net Take Home: ₹0

Old Tax Regime

Standard Deduction - ₹50,000
Your Deductions - ₹1,50,000
Taxable Income ₹10,00,000
Tax Payable (incl. 4% cess) ₹0

Calculating...

Navigating Income Tax in India

Filing Income Tax Returns (ITR) in India became significantly more interesting (and slightly more complex) when the government introduced a dual tax regime system. Taxpayers now have the option to choose between the Old Tax Regime, which offers higher tax rates but allows for various investment-linked deductions, and the New Tax Regime, which offers lower tax rates but removes almost all deductions.

Our free online Income Tax Calculator makes this decision effortless. By entering your gross salary and total planned investments, our tool instantly compares your final tax liability under both regimes, advising you on which one saves you more money.

Default Regime Change

Starting from Financial Year 2023-24, the New Tax Regime has been made the default tax regime. If you do not explicitly declare your choice to your employer or while filing your ITR, your taxes will automatically be calculated under the new, deduction-free system.

Understanding the New Tax Regime (FY 2024-25)

Income Slab (₹)Tax Rate
0 to 3,00,000Nil
3,00,001 to 6,00,0005%
6,00,001 to 9,00,00010%
9,00,001 to 12,00,00015%
12,00,001 to 15,00,00020%
Above 15,00,00030%

Crucial Benefit: Under Section 87A, if your taxable income is up to ₹7,00,000 (gross salary of ₹7,50,000 after standard deduction), you get a full tax rebate. Your tax liability becomes ZERO.

Understanding the Old Tax Regime

The Old Tax Regime encourages savings. While the tax rates are steeper at lower income levels, you can drastically reduce your taxable income using Section 80C (up to ₹1.5 Lakh), Section 80D (Health Insurance), HRA, Home Loan Interest, and more.

Income Slab (₹)Tax Rate
0 to 2,50,000Nil
2,50,001 to 5,00,0005%
5,00,001 to 10,00,00020%
Above 10,00,00030%

Crucial Benefit: Under Section 87A for the old regime, if your taxable income is up to ₹5,00,000, you get a full tax rebate, making your tax zero.

Which Regime Should You Choose?

  • If your total deductions amount to less than ₹1.5 Lakhs to ₹3.75 Lakhs (depending on your income bracket), the New Regime is mathematically better for you.
  • If you are paying high house rent (HRA) and maxing out all your investment deductions like PPF, LIC, and NPS, the Old Regime will likely save you more money.

Frequently Asked Questions

It depends on your deductions. The New Tax Regime offers lower tax rates but does not allow most deductions (like Section 80C, HRA, etc.). The Old Tax Regime has higher tax rates but allows you to reduce your taxable income through various investments. Our calculator helps you compare both.

Yes! Starting from FY 2023-24 (AY 2024-25), the standard deduction of ₹50,000 is available to salaried individuals and pensioners under the New Tax Regime as well.

Section 87A provides a tax rebate to individuals earning below a certain threshold, effectively making their tax liability zero. Under the Old Regime, the rebate makes income up to ₹5 Lakhs tax-free. Under the New Regime, income up to ₹7 Lakhs is tax-free.

Yes. A 4% Health and Education Cess is automatically added to the computed income tax amount in both regimes before showing the final tax liability.

Yes, this calculator uses the latest income tax slabs and rules announced for Financial Year 2024-25 (Assessment Year 2025-26).

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