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Use our income tax calculator to calculate tax payable on your income for FY 2024-25 (old tax regime vs new tax regime) as per Union Budget 2024, FY 2023-24, and FY 2022-23 in a few simple steps.
Check how much income tax you need to pay
- 1 Basic details
- 2 Income details
- 3 Exemptions
- 4 Capital gains
- 5 Deductions
- 2024-25
- 2023-24
- 2022-23
%
- Below 60
- 60 - 80
- Above 80
%
- Metro
- Non-metro
%
- Self Owned
- Rented
%
- Salaried
- Self employed
- Yearly
- Monthly
Income details:
Monthly Annual
Other income details:
No Yes
Debt investments Capital gains arising from short term investments in Debt instruments.
Unlisted shares Capital gains arising from short term investments in Unlisted shares.
Real estate or Land Capital gains arising from short term investments in Real Estate or Land.
Basic Deductions - 80C deductions (max. allowed 1.5L) Amount invested in PPF, VPF, FDs, ELSS funds, Term insurance, LIC, etc.
Health insurance premium - 80D For self,family, parents
NPS investment - 80CCD(1B) (max. 50,000) This is over and above the investment limit of 1.5 lacs unders section 80C
Interests on loans - 80E/80EEA Interest on Education loan, Home loan
Donation to charities - 80G Mention those eligible for tax deduction
Expenses related to work Total expenses incurred in running the business. Like office rent, client meeting expenses, contracting expenses, etc
What you get:
Tax exemptions Taxable income Deductions
Tax exemptions Taxable income Deductions
Total invested Interest earned
What you get:
Select tax regime
- Old regime
- New regime
Taxable income | Tax deductions | Tax payable |
---|---|---|
₹0 | ₹0 | ₹0 |
Invest for retirement & save ₹62,400 in taxes every year
Invest in NPS
Know All About Income Tax Calculator
What is Income Tax Calculator?
An income tax calculator is an online tool that helps individuals calculate the amount of income tax they will owe to the government based on their taxable income. It takes into account various factors such as income sources, deductions, exemptions, and tax credits to calculate the final tax liability.
Users input details such as their annual income, income sources, age, exemptions (like HRA, EPF, DA) deductions (like tax saving investments, loan interest or donations, etc), and other relevant information. The calculator then processes these inputs and provides an estimate of the amount of income tax owed.
How to Use the Income Tax Calculator for FY 2024-25?
You have follow the steps given below to figure out the tax payable on your income for FY 2024-25 or AY 2025-26:
Step 1: Provide your basic details
Select the financial year from the dropdown menu for which you want to calculate the income tax, then input your basic details such as your age group (it tells your applicable tax slab rates), type of city you are living in, earning source, the type of house you are living in, rent that you pay if you are living in a rented house.
Step 2: Income details
Now, add your income details such as your basic salary, and income from other sources, such as interest on savings, interest on deposits, and rental income.
Step 3: Add your exemptions
Next, you need to add the exemptions such as HRA, dearness allowance (DA), special allowance, and your EPF contribution.
Step 4: Input your capital gains
In this part, you can input all the capital gains you have earned in the year through the sale of equity investments, unlisted shares, debt investments, and real estate.
Step 5: Add the deductions
In this step, you need to provide details of your tax-saving investments (such as ELSS, term insurance premiums, NPS, PPF, health insurance premiums, donations to charities) under section 80C, 80D, 80G, 80E and 80TTA, etc. Also, you can enter details like interest paid on an education loan, interest paid on a home loan for rented property, and interest paid on a loan for self-occupied property (if applicable).
Step 6: Get the results
After hitting "Continue", you will see your total taxable income and the total tax that you need to pay under the tax regime that you have chosen.
Now, let’s know how to calculate income tax by using the tax calculator.
How to Calculate Income Tax? (With Example)
Calculating income tax involves finding out your taxable income based on various sources and applying the applicable income tax slabs. Here are the steps for the income tax calculation for a salaried individual:
Step 1: Calculate your gross taxable income
To calculate your gross taxable income, you need to compute your net salary after subtracting your deductions, such as HRA, LTA, and standard deduction, from your gross salary.
Now, you need to add the net salary with other income from different sources, such as interest income, capital gains from investments, and rental income, to come to your gross taxable income.
Gross taxable income = Gross salary – HRA – LTA – Standard deduction + Income from other sources
Step 2: Calculate the total tax benefits
If you have made any tax-saving investments or are eligible for any exemptions, you need to compute the total benefits. You can cut your taxable earnings by investing in tax saving options such as Equity Linked Savings Scheme (ELSS), and Public Provident Fund (PPF), available under section 80C of the Indian Income Tax.
Total tax benefits = Investments under 80C+ Health insurance premium + savings account interest + home loan interest + others
Step 3: Calculate the net taxable income
In this third step, you need to calculate the net taxable income. You can easily subtract the total tax benefits from the gross taxable income.
Net taxable income = Gross taxable income – net taxable income
Step 4: Calculate your total tax liability
In old tax regime, if your total taxable income is less than ₹5 lakhs, you will get a rebate of ₹12,500 under section 87A. For individuals whose total taxable income is above ₹5 lakhs, the tax rate discussed earlier would apply.
If you are going for the new tax regime, the various deductions/exemptions, such as HRA and LTA will be taxable. In addition, you can’t avail of tax benefits by investing in tax-saving instruments and other deductions. So, your entire income would fall under income tax purview. However, if your taxable income is less than ₹7 lakhs, you will get a rebate of ₹20,000 under section 87A
Let us take an example to see the difference between the old and new tax regimes.
Nehal works in Mumbai and gets a basic monthly salary of ₹1 lakh. Her employer offers an HRA of ₹50,000, a special monthly allowance of ₹20,000 per month, and a yearly LTA of ₹30,000. She stays in a rented house and pays a rent of ₹40,000 per month. Moreover, her additional income from capital gains and interest income is ₹1 lakh in the financial year.
Let us see her total tax liability under the old and new tax regimes.
Nature | Amount (In one year) | Exemption/ Deduction | Taxable Income (Old regime) | Taxable Income (New regime) |
---|---|---|---|---|
Basic Salary | 12,00,000 | 12,00,000 | 12,00,000 | |
HRA | 6,00,000 | 4,80,000 | 1,20,000 | 6,00,000 |
Special allowance | 2,40,000 | NA | 2,40,000 | 2,40,000 |
LTA | 30,000 | 20,000(Billed) | 10,000 | 30,000 |
Gross Total Income from Salary | 15,70,000 | 20,70,000 | ||
Standard deduction | 50,000 | -50,000 | -75,000 | |
Other sources of income | 1,00,000 | 1,00,000 | 1,00,000 | |
Gross Taxable Income | 16,20,000 | 20,95,000 |
Now, let us compute the various tax-saving investments and the various deductions. She has invested ₹1.5 lakhs under the different tax saving options under section 80C, an additional ₹50,000 in NPS, and paid medical insurance premium worth ₹25,000 for herself and her spouse.
She also availed a tax deduction of ₹5,000 under section 80TTA against her savings account interest.
Type of Tax exemptions/deductions | Amount of Tax exemptions/deductions |
Under 80C | 1,50,000 |
Under section 80CC(1B) | 50,000 |
Under section 80D | 25,000 |
Under 80TTA | 5,000 |
Total tax deductions | 2,30,000 |
So, as per the income tax calculation formula, her total tax deductions for the financial year is ₹2,30,000.
As a result, net taxable income under the old tax regime would be ₹13,90,000, while for the new tax regime, it would be ₹20,95,000.
Old Tax Regime | |||
Gross Taxable Income | 16,20,000 | ||
Deduction | 2,30,000 | ||
Total Taxable Income | 13,90,000 | ||
Income tax slab | Taxable income | Tax rate | Tax (in ₹) |
Up to 2.5 lakhs | 0 | 0 | 0 |
2.5-5 lakh | 250,000 | 5% | 12,500 |
5-10 lakh | 5,00,000 | 20% | 1,00,000 |
Above 10 lakh | 3,90,000 | 30% | 1,17,000 |
Total Tax (A) | 2,29,500 | ||
Health and education cess (B) (4% of A) | 9,180 | ||
Total tax liability after 4% cess (A+B) | 2,38,680 |
New Tax Regime | |||
Gross Taxable Income | 20,95,000 | ||
Deduction | 0 | ||
Total Taxable Income | 20,95,000 | ||
Income tax slab | Taxable income | Tax rate | Tax (in ₹) |
Upto 3 lakh | 0 | 0 | 0 |
3-7 lakh | 400,000 | 5% | 20,000 |
7-10 lakh | 300,000 | 10% | 30,000 |
10-12 lakh | 200,000 | 15% | 30,000 |
12-15 lakh | 300,000 | 20% | 60,000 |
Above 15 lakh | 5,95,000 | 30% | 1,78,500 |
Total Tax (A) | 3,18,500 | ||
Health and education cess (B) (4% of A) | 12,740 | ||
Total tax liability after 4% cess (A+B) | 3,31,240 |
So, we can see that the total income tax liability for Nehal would be more if she opted for the new tax structure.
Simply put, individuals must calculate the tax payable under both tax regimes and decide which regime to select.
Also, the ability to switch between old and new tax regimes depends on the nature of the income. Salaried individuals and pensioners with no business income can switch between the two tax regimes every assessment year, depending on their financial status. If a non-salaried taxpayer chooses to transfer to the new tax regime in the current assessment year, they will only be able to do so once in their lifetime. They cannot choose the tax rates in the new regime once she has exercised their choice to return to the previous tax regime.
Income Tax Slab Under the Old Tax Regime
To minimise your taxable income, you could claim tax exemptions on HRA and LTA, as well as deductions under other sections, such as Section 80C, 80D, and 80TTA under the old tax regime.
Income Slabs | Income Tax Slab Rates for Individuals and HUFs Below 60 Years | Income Tax Slab Rates for Senior Citizens Aged 60-80 Years | Income Tax Slab Rates for Super Senior Citizens Over 80 Years |
---|---|---|---|
Up to Rs. 2,50,000 | 0% | 0% | 0% |
Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% | 0% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% | 30% |
There are a few other things to keep in mind about the former tax system:
A 4% health and education cess is applied to the tax amount.
A surcharge of ten percent of total income beyond Rs.50,00,000 and up to Rs. 1,00,00,000, and 15 % on income between Rs. 1 crore and Rs. 2 crores, 25% on income between Rs. 2 Crores to Rs. 5 Crores and 37% on income between Rs. 5 crores and Rs.10 crores and income exceeding Rs. 10 crore are applied as well.
Income Tax Slab Under the New Tax Regime
Most tax exemptions and deductions are no longer accessible under the new tax regime.
Income Slabs | Income Tax Slab Rates Under the New Regime for Individuals and Hindu Undivided Families |
---|---|
Up to Rs 3 lakhs | 0% |
Rs.3 Lakhs - Rs. 7 Lakhs | 5% |
Rs. 7 Lakhs - Rs. 10 Lakhs | 10% |
Rs. 10 Lakhs- Rs. 12 Lakhs | 15% |
Rs. 12 Lakhs - Rs. 15 Lakhs | 20% |
Above Rs. 15 Lakhs | 30% |
Deduction/Exemption Allowed Under Both Regimes
If you have invested in saving schemes or incurred any expenses, they are eligible for deductions. So, before paying taxes, you can deduct these investments from your gross taxable income to reduce your tax liability.
Old Tax Regime
Here is a list of popular deductions and exemptions allowed under the old tax regime:
- For salaried individuals, the standard deduction is Rs 50,000
- LTA exemption for salaried individuals for travel purposes
- An individual or a HUF (Hindu Undivided Family) can claim a tax deduction of up to Rs. 1.5 lakh under section 80C
- Medical expenses are eligible for a deduction under Section 80D
- The interest on a self-occupied home loan can be deducted up to Rs. 2 lakh
- Deduction for Higher Education Loan under section 80E
- Income tax deduction under Section 80G for charitable donations
- Tax deduction of up to Rs. 10,000 on savings account interest income
New Tax Regime
The following deductions are available under the new tax regime 2024:
- Section 24(b) allows for a deduction on interest paid on a home loan for a rented-out property.
- Employer contribution to NPS under 80CCD (1B) is available upto 14% of salary.
- Similarly, PPF and Sukanya Samriddhi Yojana maturity proceeds and interest remain tax-free. The new tax law only eliminates deductions for investments for these two investment avenues.
- Transport allowances for disabled people.
- Conveyance allowance obtained to cover work-related conveyance expenses.
- Any remuneration paid to cover tour or transfer costs
- Indemnity paid daily to cover routine normal costs or expenses incurred due to absence from a regular place of duty.
- Expenses for additional employees are deducted under Section 80JJA
- Salaried individuals can also take a standard deduction of Rs.75,000 under the new tax regime. Previously this deduction was only available under the old tax regime.
- Contribution to Agniveer C
- Furthermore, Section 57(iia) was introduced under the new tax regime for claiming deductions related to income from family pensions. Now, you can claim a deduction of the one-third amount or 25,000, whichever is less.
- Corpus Fund is eligible for deduction under Section 80CCH.
Frequently Asked Questions
How much tax should I pay on my salary?
Tax payable on salary is based on your total taxable income after all the deductions and exemptions, the income tax slab you belong to, and the tax regime you have opted for.
When can I file my income tax returns?
Typically the last date for filing an income tax return is 31st July after the end of the financial year. But it may be further extended as per the government’s discretion. For Example, in the year 2022, the last date was unchanged, i.e., 31st July 2022. But in the year 2021, the last date was extended to 31st December 2021.
What is the difference between exemption and deduction?
Exemptions are a part of your income on which tax is not applicable. For example, a part of your LTA (Leave travel allowance) is considered an exemption. Deductions, on the other hand, are expenses that help you reduce your taxable income. For instance, you can claim your investments in ELSS, NPS, and PPF as deductions under Section 80C to lower your net taxable income.
What are the major tax provisions introduced in the budget 2024 for Individual taxation?
The major tax provisions introduced in the Budget 2024 are shown below:
- The standard deduction limit has been increased to Rs 75,000 under the new tax regime.
- Now, both central and state government employees can deduct up to 14% of employer contributions towards NPS.
- Exemption of capital gains increased to Rs 1.25 lakh per year for certain assets.
- Listed Financial Assets held for more than a year will be categorised as long-term. Unlisted financial assets and non-financial assets held for at least 2 years will be classified as long-term.
- Short-term gains on certain financial assets will be taxed at 20%, and long-term gains on all assets (Financial and Non-financial assets) will be taxed at 12.5%.
Which deductions/exemptions are not available under the new tax regime?
Under the new tax regime, all deductions under Chapter VIA such as 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGC, are not available to the taxpayer. Also, if you are salaried, you can not avail of exemptions on allowances such as HRA and LTA.
How will the new tax regime work for an individual?
Under the new tax regime, individuals can not claim popular deductions such as PPF, ELSS, insurance, etc. However, the slab rates are different.
Here is a comparison between the old and new tax slabs:
Old Tax Regime | New Tax Regime | ||
Income Slabs | Rates | Income Slabs | Rates |
Upto 2.5 lakhs | 0% | Upto 3 lakhs | 0% |
Rs 2.5 lakhs - Rs 5 lakhs | 5% | Rs.3 Lakhs - Rs. 7 Lakhs | 5% |
Rs 5 lakhs - Rs 10 lakhs | 20% | Rs. 7 Lakhs - Rs. 10 Lakhs | 10% |
Rs. 10 Lakhs- Rs. 12 Lakhs | 15% | ||
Rs. 12 Lakhs - Rs. 15 Lakhs | 20% | ||
Above 10 lakhs | 30% | Above Rs 15 lakhs | 30% |
Is the new tax regime optional? Can I change the option once selected for any financial year?
Yes, the new tax regime is optional. You can opt for the new or old tax regime at the beginning of a financial year and cannot change it till the next financial year.
What details do I need to provide while e-filing my ITR?
Information required at the time of e-filling are as follows:
- Basic details such as PAN number, Adhar number, and Address
- Details of income earned from various sources such as salary, house property or any other sources.
- Proof of payment of any advance tax or TDS (Tax deducted at source) information
- Bank details held in the financial year
- Details of deductions to be claimed under Chapter VIA
Click here to know more about ITR e-filling.
Does everyone have to file their income tax returns?
If the taxable income of the individual exceeds the basic exemption limit of Rs.2.5 lakh in a financial year, then it is mandatory to file the income tax return.
What is the maximum non-taxable income limit?
The maximum non-taxable income limit is Rs 2.5 lakh. If your total taxable income is below Rs 2.5 lakh, then you are not required to pay any tax.
In case your total income is below Rs 5 lakh, then you are eligible for a tax rebate. Tax rebate under Section 87A of the Income Tax Act is the final reduction from your tax liability up to Rs 12,500 (i.e. 250,000 x 5%). So, on taxable income of Rs 5 lakh, the income tax outgo becomes nil.
Can I compute my TDS with the income tax calculator?
No income tax calculator does not calculate the TDS amount. For TDS calculation, you can use the ET Money's TDS calculator.
Is PF taxable?
No, PF is not taxable. It enjoys Exempt Exempt Exempt, i.e. EEE status, meaning the investment made, interest earned, and maturity amount are tax-free.