Income Tax Calculator

Calculate income tax liability under old and new tax regime for FY 2024-25

Income & Deductions

Gross Annual Income

Tax Regime

New Regime Benefits

• Higher standard deduction: ₹75,000
• Lower tax rates on middle income
• No other deductions allowed
• Simplified tax structure

Compare both tax regimes

Tax Calculation - New Regime

Gross Income

₹10,00,000

Standard Deduction

₹75,000

Taxable Income

₹9,25,000

Total Tax

₹44,200

Effective Tax Rate

4.42%

Marginal Tax Rate (on next rupee)

10%

Applies only to income above your current slab threshold.

Annual Take Home Salary

₹9,55,800

Monthly: ₹79,650

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Tax calculation for FY 2024-25 (AY 2025-26)

Includes 4% Health & Education Cess

Standard deduction: ₹75,000

Tax Slab Breakdown - New Regime

Income Slab	Taxable Income	Tax Rate	Tax Amount
₹0.0L - ₹3.0L	₹3,00,000	0%	₹0
₹3.0L - ₹7.0L	₹4,00,000	5%	₹20,000
₹7.0L - ₹10.0L	₹2,25,000	10%	₹22,500
Cess (4%)	—		₹1,700
Total Tax (incl. cess)	—		₹44,200

* Includes 4% Health & Education Cess in the totals

Tax Regime Comparison

Regime	Taxable Income	Total Tax	Take Home	Effective Rate	Status
Old Regime	₹9,50,000	₹1,06,600	₹8,93,400	10.66%	❌ Higher Tax
New Regime	₹9,25,000	₹44,200	₹9,55,800	4.42%	✅ Better

Recommendation

Based on the deductions you entered, New Regime results in lower tax by ₹62,400.

Recommendation is strictly based on deductions entered. More deductions may change the outcome.

If you have additional deductions eligible under the Old Regime (like LTA, Section 24(b), etc.), please add them. Calculation currently only reflects entered deductions.

* Old Regime figures use only the deductions you’ve provided here. New Regime applies the ₹75,000 standard deduction only.

Tax Calculation

Taxable Income

₹9,25,000

Total Tax

₹44,200

Take Home (Annual)

₹9,55,800

Tax Rates

Effective Rate: 4.42%

Marginal Rate (on next rupee): 10%

Applies only to income above your current slab threshold.

Monthly Take Home

₹79,650

How to Use Income Tax Calculator

1Enter your annual gross income from all sources
2Choose between old and new tax regime
3Add standard deduction (₹50,000 for salaried)
4Input investments under Section 80C (max ₹1.5 lakhs)
5Add other deductions like 80D, HRA, home loan interest
6Review your tax liability and compare both regimes to choose the better option

Tax Calculation Process

Tax = (Taxable Income × Tax Rate) + Cess

Where:

Taxable Income =: Gross Income - All Deductions
Tax Rate =: As per applicable tax slabs
Cess =: 4% Health and Education Cess on total tax

Example:

For ₹8 lakhs taxable income in new regime: Tax = (₹3L×0% + ₹4L×5% + ₹1L×10%) + 4% cess = ₹31,200

Practical Examples

New Tax Regime Example

Scenario:

₹10 lakh annual income, minimal deductions

Calculation:

Gross: ₹10L | Standard Deduction: ₹50K | Taxable: ₹9.5L

Result:

Tax: ₹45,000 | Cess: ₹1,800 | Total Tax: ₹46,800 | Take-home: ₹9,53,200

Old Tax Regime Example

Scenario:

₹10 lakh annual income with ₹1.5L in 80C investments

Calculation:

Gross: ₹10L | Standard Deduction: ₹50K | 80C: ₹1.5L | Taxable: ₹8L

Result:

Tax: ₹72,500 | Cess: ₹2,900 | Total Tax: ₹75,400 | Take-home: ₹9,24,600

High Income Comparison

Scenario:

₹20 lakh annual income with maximum deductions

Calculation:

Comparing both regimes with HRA, 80C, 80D, home loan interest

Result:

New Regime: ₹2,91,200 tax | Old Regime: ₹2,44,400 tax | Old regime saves ₹46,800

Expert Tips

Plan investments in tax-saving instruments before year-end
Keep all tax-related documents organized for filing returns
Consider tax implications when making investment decisions
File ITR even if no tax is payable for income above ₹2.5 lakhs

Frequently Asked Questions

Which is better - old or new tax regime?

It depends on your deductions. New regime has lower rates but limited deductions. If your 80C, HRA, home loan interest exceed ₹2-3 lakhs, old regime might be better. Use our calculator to compare.

Can I switch between tax regimes every year?

Salaried individuals can switch annually. However, those with business income cannot switch back to old regime once they opt for new regime.

What deductions are available in new tax regime?

New regime allows standard deduction (₹50,000), employer NPS contribution (80CCD(2)), and interest on education loan. Most other deductions are not available.

How is HRA exemption calculated?

HRA exemption is minimum of: actual HRA received, 50% of salary (metro)/40% (non-metro), or actual rent minus 10% of salary.

What is the maximum 80C deduction limit?

Maximum 80C deduction is ₹1.5 lakhs per year. This includes EPF, PPF, ELSS, life insurance premiums, home loan principal, tuition fees, and other eligible investments.