Gross Total Income ₹0
Total Deductions ₹0
New Tax Regime
Taxable Income ₹0
Total Income Tax ₹0
Rebate ₹0
Cess ₹0
Total Tax Payable ₹0
Take-Home Salary ₹0
Old Tax Regime
Taxable Income ₹0
Total Income Tax ₹0
Rebate ₹0
Cess ₹0
Total Tax Payable ₹0
Take-Home Salary ₹0
| Slab Range | Rate | Portion | Tax |
|---|
As India continues to evolve financially, tax laws are becoming more complex. One of the key tools that simplifies this process for taxpayers is an Income Tax Calculator.
It will help users navigate through the new and old tax regimes, calculate deductions, and ensure they comply with the tax laws efficiently.
Table of Contents
What Is An Income Tax Calculator?
An Income Tax Calculator is a digital tool that helps individuals calculate their income tax liabilities for a given financial year based on the latest income tax slabs, deductions, and exemptions.
It automates the complex calculations involved in tax filing, making it easier for taxpayers to understand the amount of tax they owe to the government.
Benefits Of Using An Income Tax Calculator
By using this Income Tax Calculator, individuals can:
- Get accurate tax estimates quickly.
- Easily compare the benefits of both tax regimes.
- Understand applicable deductions and exemptions to minimize tax liability.
Tax Regimes In India
India has two tax regimes.
- Old Tax Regime: Higher tax rates, but offers many deductions to reduce tax
- New Tax Regime: Lower tax rate but very few deductions available.
Whether to choose the old tax regime or the new tax regime is purely an individual choice based on the income and investments that person made.
However, our Income Tax Calculator will suggest to you which tax regimes you should choose based on your income and investments.
Please note that these tax regimes are only applicable to salaried personnel. For business owners and other sources of income, the income tax rates are different.
Old Tax Regime
The Old Tax Regime offers several deductions that can help reduce your taxable income. These deductions allow individuals to save on taxes by making investments or incurring certain eligible expenses.
Some of the major deductions under the old regime include:
1. Section 80C
Under Section 80C, taxpayers can claim deductions up to ₹1.5 lakh on investments made in specified instruments, such as:
- Public Provident Fund (PPF)
- National Savings Certificates (NSC)
- Employee Provident Fund (EPF)
- Tax-saving Fixed Deposits
- ELSS (Equity Linked Savings Scheme)
- Life Insurance Premiums
- Home loan principal amount
- Tuition fee
2. Section 80D
This section allows deductions on premiums paid for health insurance for self, family, and parents:
- Up to ₹25,000 for individuals below 60 years of age.
- Up to ₹50,000 for senior citizens (above 60 years).
3. Section 24(b) (Home Loan Interest)
Under Section 24(b), taxpayers can claim a deduction of up to ₹2 lakh on the interest paid on home loans for self-occupied properties. This deduction is available for both old and new homes.
4. House Rent Allowance (HRA)
If you live in a rented house and receive House Rent Allowance (HRA), you can claim an exemption under Section 10(13A), based on your rent and salary structure.
5. Section 80E (Education Loan Interest)
Deductions on the interest paid for education loans are allowed under Section 80E. This is especially helpful for individuals who are repaying student loans. There is no limit on the interest amount that you can claim
6. Section 80G (Charitable Donations)
Donations made to registered charitable institutions are eligible for deductions under Section 80G. The deduction can range from 50% to 100% of the donation amount.
| Type of Donation | Deduction Percentage | Limit |
|---|---|---|
| Donations to PM National Relief Fund, etc. | 100% | No Limit |
| Donations to registered charitable trusts | 50% | Subject to 10% of Total Income |
| Donations to political parties | 100% | No Limit |
| Donations to other approved funds/NGOs | 50% or 100% | Subject to 10% of Total Income |
7. Other Deductions
- Section 80TTA: Deduction of up to ₹10,000 on interest earned from savings bank accounts.
- Section 80TTB: Deduction of up to ₹50,000 on interest earned from savings bank accounts for senior citizens.
- Section 80GG: For individuals who don’t receive HRA but pay rent.
8. Section 80CCD(1B) – Additional Deduction for NPS (National Pension Scheme)
You can claim up to ₹50,000 for contributions to your NPS account. This is over and above the ₹1.5 lakh limit under Section 80C.
New Tax Regime
The New Tax Regime was introduced by the Government of India under Section 115BAC to simplify income tax by offering lower tax rates in exchange for fewer deductions and exemptions.
The following key deductions are available in the new tax regime
1. Section 80CCD(2) – Additional Deduction for NPS (National Pension Scheme)
You can claim up to 10% of your Basic Salary + DA for contributions to your NPS account.
2. Section 87A – Rebate for Income Below ₹12 Lakh
- Eligibility: Available to individuals whose taxable income is ₹12 lakh or less.
- Rebate Limit: ₹60000. This effectively means that taxpayers with taxable income up to ₹12 lakh will not have to pay any income tax.
3. Section 24B – Interest On Let Out Property Loan
- Eligibility: Available to the home loan borrowers for let-out properties
- Deduction Limit: There is no upper limit
| Description | Section | Old Tax Regime | New Tax Regime (2025) |
|---|---|---|---|
| Standard Deduction for Salaried/Pensioners | Section 16(1) | ₹50,000 | ₹75,000 |
| Rebate | Section 87A | ₹12,500 (if income ≤ ₹5 Lakh) | ₹25,000 (for income ≤ ₹7 Lakh) |
| Additional Rebate | Section 87A | Not applicable | No Tax for Income up to ₹12 Lakh (Marginal Relief applies beyond ₹12 Lakh) |
| Home Loan Interest (Self-Occupied Property) | Section 24(b) | Up to ₹2 Lakh for self-occupied property | Not Available |
| Home Loan Interest (Let-Out Property) | Section 24(b) | Full Interest Paid (no upper limit) | Full Interest Paid (no upper limit) |
| Additional Home Loan Interest | Section 80EE | ₹50,000 | Not Available |
| Additional Home Loan Interest | Section 80EEA | ₹150,000 | Not Available |
| Home Loan Principal Repayment | Section 80C | Up to ₹1.5 Lakh | Not Available |
| House Rent Allowance (HRA) | 10(13A) | Allowed (With Limits) | Not Available |
| Leave Encashment | Section 10(10AA) | Exempt (subject to limits) | Exempt (subject to limits) |
| Gratuity | Section 10(10) | Exempt up to ₹20 Lakh | Exempt up to ₹20 Lakh |
| Voluntary Retirement Scheme (VRS) Compensation | Section 10(10C) | Exempt up to ₹5 Lakh | Exempt up to ₹5 Lakh |
| Leave Travel Allowance (LTA) | Section 10(5) | Exempt (subject to limits) | Not Available |
| Convenience Allowance | Section 10(14) | Exempt (subject to actual expenditure) | Available |
| Food Allowance | Section 10(14) | Exempt (subject to actual expenditure) | Not Available |
| Angel Investor Contribution | Section 80CCG | Available (subject to conditions) | Not Available |
| Employee’s Contribution to NPS (Additional Deduction) | Section 80CCD(1B) | Up to ₹50,000 (over and above ₹1.5 Lakh under 80C) | Not Available |
| Employer’s Contribution to NPS | Section 80CCD(2) | Up to 10% of Salary (Basic + DA) | Up to 10% of Salary (Basic + DA) |
| Health Insurance Premium | Section 80D | Up to ₹25,000 (₹50,000 for senior citizens) | Not Available |
| Interest on Education Loan | Section 80E | No upper limit for interest | Not Available |
| Interest on Savings Account | Section 80TTA | Up to ₹10,000 | Not Available |
| Interest on Senior Citizen Savings Account | Section 80TTB | Up to ₹50,000 | Not Available |
| Disability Deduction | Section 80U | ₹75,000 for normal disability, ₹1.25 Lakh for severe disability | ₹75,000 for normal disability, ₹1.25 Lakh for severe disability |
| Pension Plan Contributions | Section 80CCC | Up to ₹1.5 Lakh (part of overall limit) | Not Available |
| Donations to Charitable Institutions | Section 80G | Available (subject to limits) | Available (subject to limits) |
| Family Pension | Section 57(iia) | ₹15,000 | ₹25,000 |
Old Tax Regime Vs New Tax Regime: Tax Slabs
| Income Slabs (₹) | Old Tax Regime Tax Rate | New Tax Regime Tax Rate |
|---|---|---|
| Up to ₹2,50,000 | 0% | — |
| ₹2,50,001 – ₹3,00,000 | 5% (0% if Senior Citizen >60 Years) | — |
| ₹3,00,001 – ₹5,00,000 | 5% (0% if Senior Citizen >80 Years) | — |
| ₹5,00,001 – ₹10,00,000 | 20% | — |
| Above ₹10,00,000 | 30% | — |
| Up to ₹4,00,000 | — | 0% |
| ₹4,00,001 – ₹8,00,000 | — | 5% |
| ₹8,00,001 – ₹12,00,000 | — | 10% |
| ₹12,00,001 – ₹16,00,000 | — | 15% |
| ₹16,00,001 – ₹20,00,000 | — | 20% |
| ₹20,00,001 – ₹24,00,000 | — | 25% |
| Above ₹24,00,000 | — | 30% |
Old Tax Regime Vs New Tax Regime Sample Illustration
| Annual Income (₹) | Old Tax Regime Tax Payable (₹) | New Tax Regime Tax Payable (₹) |
|---|---|---|
| ₹5,00,000 | ₹0 ( After Rebate) | ₹0 ( After Rebate) |
| ₹10,00,000 | ₹1,06,600 | ₹0 ( After Rebate) |
| ₹12,75,000 | ₹1,87,200 | ₹0 ( After Rebate) |
| ₹15,00,000 | ₹2,57,400 | ₹97,500 |
| ₹25,00,000 | ₹4,13,r00 | ₹1,92,400 |
Conclusion: Income Tax Calculator
In conclusion, an Income Tax Calculator is not just a calculation tool—it is a smart financial planning companion. Use it early in the financial year to estimate your taxes, adjust your savings strategy, and avoid last-minute surprises at the time of filing your income tax return.
