Income Tax Calculator (India)

What is income tax?

Income tax is the tax you pay on your earnings—salary, business income, capital gains, interest, and other heads of income as defined under the Income Tax Act. In India, individuals can choose between the New Regime (lower slab rates with minimal deductions) or the Old Regime (higher rates but with deductions like 80C, 80D, HRA, and others). The choice can be made at the time of filing; for many salaried people with few investments, the New Regime results in lower tax. This calculator estimates your tax under the New Regime for FY 2024-25.

The New Regime simplifies tax by doing away with most exemptions and offering lower rates. Rebate 87A ensures that if your total income is ₹7 lakh or less, you pay no tax. A 4% health and education cess is added on the tax amount. Use this tool to get a quick estimate before planning investments or consulting a CA for filing.

New Regime slabs (FY 2024-25)

Under the New Regime for FY 2024-25, tax is calculated on these slabs: income up to ₹3 lakh is nil; ₹3–7 lakh is taxed at 5%; ₹7–10 lakh at 10%; ₹10–12 lakh at 15%; ₹12–15 lakh at 20%; and above ₹15 lakh at 30%. If your total income is ₹7 lakh or less, rebate 87A makes your tax zero. After computing tax on the slabs, a 4% health and education cess is added on the tax. This calculator applies these rules to give you an estimate of tax payable.

Example: ₹12 Lakh income (New Regime)

For a total income of ₹12 lakh under the New Regime (FY 2024-25), tax is calculated on the slabs: first ₹3 lakh nil, next ₹4 lakh at 5% (₹20,000), next ₹3 lakh at 10% (₹30,000), and the next ₹2 lakh at 15% (₹30,000). So tax before rebate is ₹80,000. Since income is above ₹7 lakh, rebate 87A does not apply. After adding 4% cess, total tax payable is approximately ₹83,200. Use the calculator above with your exact income to get your figure; the result helps you plan TDS and year-end tax.

Benefits of Using This Calculator

An income tax calculator gives you a quick estimate of your tax under the New Regime so you can plan your finances, set aside money for the year, and avoid surprises at filing time. It helps you see the impact of rebate 87A (zero tax up to ₹7 lakh) and how each slab affects your liability. Salaried individuals, freelancers, and anyone with multiple income sources can use it to get a ballpark before consulting a CA or filing returns.

You can try different income levels to see how much tax you would pay and whether investing in tax-saving instruments under the Old Regime might be better. The result is an estimate only; for official assessment and filing, always refer to the Income Tax Department and a qualified professional.

How to Use This Calculator

Enter your total taxable income in rupees (annual). If you are comparing regimes, you can enter income after deductions for the Old Regime comparison elsewhere. The calculator uses New Regime slabs for FY 2024-25, applies rebate 87A when income is ₹7 lakh or less, and adds 4% health and education cess. It then shows the tax payable.

This is an estimate only; actual tax depends on your income heads, deductions, and other factors. For official assessment and filing, always refer to the Income Tax Department and a qualified CA. Use the result for planning TDS, investments, and year-end tax.

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