Income Tax Calculator
Review tax brackets and estimated taxes.
Review tax brackets and estimated taxes.
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Review tax obligations, deductions, and relief options in one place.
Indian Rupee (INR) • Calculations processed locally
The tax difference between regimes is only ₹0. Both options are nearly equivalent for your income level.
Your income level allows for excellent tax optimization in either regime. Focus on long-term financial planning.
| Parameter | New Regime ✓ | Old Regime | Difference |
|---|---|---|---|
| Tax | ₹0 | ₹0 | +₹0 |
| Effective Rate | 0.0% | 0.0% | |
| Taxable Income | ₹0 | ₹0 | |
| Standard Deduction | ₹75,000 | ₹50,000 | +₹25,000 |
| Declared Deductions | Limited in New Regime | ₹0 |
| Income Range | Taxable Amount | Rate | Tax | % of Total |
|---|---|---|---|---|
| Total | ₹0 | ₹0 | 100% |
• All calculations run entirely in your browser. No data is transmitted or stored.
• This tool is for educational purposes only. Consult a tax professional for personalized advice.
• Always verify with official sources before making financial decisions.
Keywords
Every year, millions of Indian taxpayers face the same dilemma: "Should I stick to the Old Regime or switch to the New Regime?" The answer isn't simple it depends on your salary structure, investments, and home loan commitments. The Income Tax Calculator is designed to solve exactly this problem.
This tool doesn't just spit out a number. It acts as your personal tax planner. By simulating both regimes side-by-side, it shows you exactly how much tax you save in each scenario. It accounts for the latest Budget updates, including the increased Standard Deduction and the revised slab rates under the New Regime (u/s 115BAC).
Whether you are a salaried employee, a freelancer, or a senior citizen, this calculator helps you navigate the complex maze of Sections 80C, 80D, 24(b), and 87A to ensure you don't pay a penny more than necessary.
Tax planning is the most effective way to give yourself a raise. A well-planned investment strategy can save you up to ₹1.5 Lakhs or more in taxes annually. This calculator helps you visualize the impact of every rupee invested in PPF, ELSS, or NPS.
It also handles complex calculations like Surcharge (for high-income earners > ₹50 Lakhs) and Marginal Relief, ensuring accurate estimates for HNIs. Stop guessing and start planning your finances with precision.
The Income Tax Calculator is a comprehensive utility built for the Indian taxpayer. It simplifies the Income Tax Act, 1961, into an easy-to-use interface.
What makes this tool unique?
Follow these steps to accurately estimate your tax liability:
| Component | Old Regime Treatment | New Regime Treatment |
|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 (Proposed) |
| Section 80C | Allowed (up to ₹1.5L) | Not Allowed |
| HRA Exemption | Allowed | Not Allowed |
| Home Loan Interest | Allowed (up to ₹2L) | Not Allowed (Self-occupied) |
| Rebate u/s 87A | Income up to ₹5 Lakhs | Income up to ₹7 Lakhs |
Tip: The New Regime is the "Default" regime now. You must explicitly opt for the Old Regime if you want to claim deductions.
Understanding these terms is crucial for accurate tax planning.
The Old Regime allows you to claim various deductions (80C, HRA, etc.) but has higher tax rates. The New Regime offers significantly lower tax rates but removes most deductions. The New Regime is generally better for those with fewer investments or no home loan.
A flat deduction allowed from your gross salary. It was ₹50,000 for both regimes, but recent budgets have proposed increasing it to ₹75,000 specifically for the New Regime to make it more attractive.
This is a tax relief provided to lower-income earners. Under the Old Regime, if your taxable income is ≤ ₹5 Lakhs, you get a rebate of ₹12,500 (meaning zero tax). Under the New Regime, this limit is higher: income up to ₹7 Lakhs is tax-free (rebate of ₹25,000).
Surcharge is an extra tax on the tax, applicable if your income exceeds ₹50 Lakhs. Marginal Relief ensures that the increase in tax due to surcharge doesn't exceed the increase in income itself. It protects you from paying more tax than the extra income you earned.
An additional 4% tax levied on the total tax payable (including surcharge). This money is collected by the government specifically to fund healthcare and education initiatives.
The most popular deduction section. It allows you to reduce your taxable income by up to ₹1.5 Lakhs by investing in EPF, PPF, ELSS Mutual Funds, Life Insurance premiums, or paying children's tuition fees.
A component of your salary used to pay rent. You can claim exemption on HRA under the Old Regime based on the lowest of: Actual HRA received, Actual Rent paid minus 10% of Basic Salary, or 50% of Basic Salary (metro cities).
Core Formula
Taxable Income = Gross Income − (Standard Deduction + HRA + Chapter VI-A Deductions)
Total Tax = (Tax on Slabs) + Surcharge + Cess (4%) − Rebate (87A)
The calculator follows a logical flow:
Example (New Regime): For an income of ₹9 Lakhs:
First ₹3L: Nil
₹3L-₹7L: 5%
₹7L-₹9L: 10%
Total Tax + Cess is calculated on this basis.
If you live in a rented house, HRA exemption (Old Regime) is a huge tax saver. If you buy a house, the Home Loan Interest deduction (Section 24b, up to ₹2 Lakhs) also favors the Old Regime. However, if you have neither, the New Regime is almost always better.
Freelancers and professionals can use the Presumptive Taxation scheme (Section 44ADA), declaring only 50% of their gross receipts as income. This calculator helps freelancers estimate their tax liability by entering this 50% value as "Gross Taxable Income."
Senior citizens (60-80 years) and Super Senior citizens (80+ years) have higher basic exemption limits under the Old Regime (₹3 Lakhs and ₹5 Lakhs respectively). This tool adjusts the slab calculations automatically based on age.
Salaried individuals can choose between Old and New regimes every year based on which is beneficial. However, those with business income can only switch back to the Old Regime once in their lifetime. This tool helps you make that crucial annual decision.
Internal links to explore:
The calculator makes the following assumptions:
Disclaimer: This tool provides an estimate for planning purposes only. It does not constitute professional tax advice. Please consult a Chartered Accountant (CA) before filing your returns.
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