The Income Tax Calculator is a tool that helps individuals estimate how much tax they need to pay based on their income, deductions, and age. In India, the government collects income tax from people who earn above a certain limit. To help taxpayers calculate their taxes easily, various online tools and websites offer income tax calculators.
🇮🇳 Indian Income Tax Calculator
Financial Year 2024-25 | Assessment Year 2025-26
Tax Calculation
Deductions & Exemptions
Tax Results
Total Tax Liability
Tax Breakdown
Regime Comparison
| Regime | Tax Amount |
|---|---|
| Old Regime | ₹0 |
| New Regime | ₹0 |
What Is Income Tax?
Income tax is the tax you pay to the government based on how much money you earn in a financial year. This money is used by the government for public services like roads, hospitals, schools, etc.
Who Has to Pay Income Tax?
You must pay income tax if:
- You are an individual earning more than the tax-exempt limit.
- You are a business owner or freelancer making profits.
- You are a senior citizen with taxable income above the exemption limit.
What Is an Income Tax Calculator?
An Income Tax Calculator is a tool that automatically calculates your tax amount based on your:
- Annual income
- Deductions (under Section 80C, 80D, etc.)
- Age group
- Income source (salary, rent, interest, etc.)
- Tax regime (Old or New)
It shows you how much tax you have to pay and helps you plan your finances better.
Why Use an Income Tax Calculator?
Here are some reasons:
- Saves time – No manual calculation
- Accuracy – Avoids mistakes
- Compare regimes – Helps you choose Old or New tax regime
- Financial planning – Know how much to invest or save
Understanding the Two Tax Regimes
Since FY 2020-21, India has two tax regimes:
1. Old Tax Regime
- Has higher tax rates
- Offers deductions and exemptions
- Suitable for those with many investments and deductions
2. New Tax Regime
- Lower tax rates
- No major exemptions or deductions
- Simple and transparent
You can switch between these regimes while filing your ITR.
Income Tax Slabs for FY 2024–25 (AY 2025–26)
Under the Old Tax Regime
| Income Range (₹) | Tax Rate (Age < 60) |
|---|---|
| 0 – 2,50,000 | 0% (No tax) |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Senior Citizens (60-80 yrs): Exemption up to ₹3,00,000
Super Senior Citizens (80+ yrs): Exemption up to ₹5,00,000
Under the New Tax Regime
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 3,00,000 | 0% |
| 3,00,001 – 6,00,000 | 5% |
| 6,00,001 – 9,00,000 | 10% |
| 9,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Note: Rebate under Section 87A is available up to ₹7 lakh in the New Regime (you pay no tax if your income is up to ₹7 lakh).
What Information Do You Need for a Tax Calculator?
To use an income tax calculator, you’ll need:
- Your annual salary
- Other income (interest, rent, capital gains)
- Deductions (like 80C, 80D, HRA, home loan interest)
- Your age group
- Preferred tax regime
Common Deductions (Old Regime)
| Section | Deduction Type | Limit (₹) |
|---|---|---|
| 80C | PPF, LIC, ELSS, EPF | 1,50,000 |
| 80D | Health Insurance Premium | 25,000 – 1,00,000 |
| 24(b) | Home Loan Interest | 2,00,000 |
| HRA | House Rent Allowance | Based on rent, salary |
| 80G | Donations | Varies |
| NPS | Additional deduction under 80CCD(1B) | 50,000 |
Example: Tax Calculation – Old Regime
Rahul's income details:
- Salary: ₹10,00,000
- Deduction under 80C: ₹1,50,000
- 80D (health insurance): ₹25,000
- HRA: ₹50,000
Taxable Income:
₹10,00,000 – (₹1,50,000 + ₹25,000 + ₹50,000) = ₹7,75,000
Tax:
- 0 – ₹2.5 lakh → Nil
- ₹2.5 – ₹5 lakh → 5% = ₹12,500
- ₹5 – ₹7.75 lakh → 20% on ₹2.75L = ₹55,000
Total Tax = ₹67,500 + Cess (4%) = ₹70,200
Example: Tax Calculation – New Regime
No deductions allowed (except NPS, EPF employer contribution, etc.)
Income = ₹10,00,000
Tax slabs:
- 0–3L → 0%
- 3–6L → 5% = ₹15,000
- 6–9L → 10% = ₹30,000
- 9–10L → 15% = ₹15,000
Total = ₹60,000 + Cess = ₹62,400
So Rahul pays less tax in New Regime if he has fewer deductions.
Who Should Use Which Regime?
Choose Old Regime if:
- You have many deductions (80C, 80D, HRA, home loan)
- You invest regularly in PPF, ELSS, insurance, etc.
Choose New Regime if:
- You have fewer deductions
- You want simple tax structure
Benefits of Income Tax Calculator
- Easy to use, even for beginners
- No need for manual calculations
- Helps in tax planning
- Compares both regimes
- Saves time and errors
- Available 24/7 online for free
The Income Tax Calculator is a powerful and user-friendly tool that every Indian taxpayer should use. It not only helps in accurate tax estimation but also supports smart tax planning. Whether you're a beginner or experienced, this tool can make your tax journey much easier. Use it regularly and choose the best tax regime for your needs.
