Income Tax Calculator

What is an Income Tax Calculator?

Whether you are salaried, self-employed, or receiving returns from investments or rent, income tax is mandatory for everyone earning an income. While it may seem complicated, the income tax calculator shows you how to calculate income tax online in just a few clicks!

The Income Tax Calculator India is an accurate and updated tool to help you determine your tax liability for the year and maximize your tax savings.

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How to use Income Tax Calculator

Step 1

To calculate income tax, simply enter your details on the IndiaFirst Life tax calculator online.

Step 2

Enter your age and the financial year.

Step 3

Enter your gross income from all sources, i.e., salary or business, short-term and long-term investments, FD interest, rents received on property, taxable gifts and others.

Step 4

Add the details of all the available deductions.

Step 5

The income tax calculator will calculate income tax online on the basis of both, the old and new tax regime as per the latest regulations.

Step 6

This will give you an estimate of your tax savings which can be reinvested in IndiaFirst Life’s tax-saving life insurance plans.

How to Calculate Income Tax for FY 2023-24 (AY 2024-25)?

Standard Tax Calculation for age below 60 years	Old Tax Regime	New Tax Regime
Total Annual Salary	₹ 20,00,000	₹ 20,00,000
Gross Total Income	₹ 20,00,000	₹ 20,00,000
Less: Standard Deduction	– ₹ 50,000	– ₹ 50,000
Less: Deductions under Section 80c	150000
Less: Deductions under Section 80D	25000
Less: Deductions under Section 80D	25000
Less: House Rent Allowance (out of 5,40,000 deductions of)*	4,80,000
Less: Leave Travel Allowance	N/A
Total Taxable Income	₹ 12,70,000	₹ 19,50,000
Total Tax Payable	₹ 1,63,500	₹ 2,96,400

*HRA and LTA are subject to fulfilment of various condition & based on several factors. These are approximate number of exemptions shown for the illustration purpose only according to the salary of the mentioned example.

Calculate using Old Tax Regime

Calculate using New Tax Regime

Benefits of Filing Income Tax Online

The tax calculator online calculates taxes quickly and easily and offers multiple benefits.

Enables faster tax refunds

Provides instant confirmation of filing and status updates

Offers safety and security

Pay at your convenience to avoid any late fee or penalty

Provides eligibility to offset losses against present and future investment gains

IT Return serves as income and address proof required for visa, loan and insurance application

How do Retirement Calculators work?

How to calculate income tax on salary?

Here is an easy formula that shows you how to calculate income tax on salary based on the old tax regime.

Taxable Income = Gross Income from Salary (Basic + HRA + Special Allowance + Any other allowance + Perquisites) – Standard deduction, Chapter VI-A Deductions & Professional Taxes

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Frequently Asked Questions

Eligibility criteria to file income tax

Answer: Anyone whose income falls within the tax slabs is eligible to pay tax. This works out to up to Rs. 2.5 lakhs p.a. for those below 60 years. old; up to Rs. 3 lakhs p.a. for senior citizens between 60-80 years old; up to Rs. 5 lakhs p.a. for super seniors above 80 years of age.

What are the exemptions/ deductions that are disallowed under the new tax regime?

Answer

Deduction available under section 80TTA/80TTB.

Deduction for entertainment allowance.

Leave Travel Allowance.

Tax benefit on interest paid on housing loan taken for a self-occupied or vacant house property.

Deduction of Rs 15000 allowed from family pension under clause (iia) of section 57.

Deductions under section 80C claimed for provident fund contributions, life insurance premium, school tuition fee for children and

various specified investments such as ELSS, NPS, PPF etc.

Deduction claimed for medical insurance premium under section 80D

Tax benefits for disability under sections 80DD and 80DDB.

Tax break on interest paid on education loan under section 80.

Tax break on donations to charitable institutions available under section 80G.

All deductions under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc.

Other Income Tax Rule Changes Announced In The Union Budget 2023

Answer: Under the new tax regime, tax slab has increased to Rs 7 lakh from the earlier limit of up to Rs 5 lakh. The government also plans to introduce a next-generation Common Income Tax Return (ITR) Form, to save taxpayer's time and improve the compliance efficiency.

Tips on how to prepare for filing your income tax return according to the new regime income tax slab

Answer: The simplest, economical, and most efficient way to file your Income Tax Return (ITR) is through E-fling. Keep your Form 16, provided by your employer, Pan card, and any proof of investments ready. Then register on the site, https://www.incometax gov.in/ and follow the steps. The portal can also be used to check the refund, deductions, applicable forms, and the process to file the ITR.

What is the professional tax in India?

Answer: Professional tax is a direct tax deducted from income earned from any profession, trade, or employment. As it is levied by the state government, it may vary from state to state. The tax is calculated basis predetermined slabs and ranges between Rs. 200 to Rs. 2500.

How to calculate income tax on salary?

Answer

Here is an easy formula that shows you how to calculate income tax on salary with example.

Basic Salary + HRA + Special Allowance + Transport Allowance + any other allowance = Gross Income from Salary

From this Gross Income, minus any Deductions and Professional Tax (if any).

This will give you the Net Taxable Income.

For example:

Kavita Shrivastava earns a basic salary of ₹ 1,00,000 per month

House Rent Allowance (HRA) of ₹ 45,000 per month

Special Allowance of ₹ 20,000 per month

Leave Travel Allowance (LTA) of ₹ 20,000 per Annum

Her taxable income would be calculated as follows:

Components	Amount
Basic Salary	1,00,000 x 12 = 12,00,000
House Rent Allowance (HRA)	45,000 x 12 = 5,40,000
Special Allowance	20,000 x 12 = 2,40,000
Leave Travel Allowance (LTA)	20,000
Total Annual Salary (Income)	20,00,000

Kavita’s salary is above Rs. 15 lakhs. If you calculate income tax online with the tax calculator old regime and new tax regime calculator, this is what you will get:

Old Tax Regime	New Tax Regime
Total Annual Salary	₹ 20,00,000	₹ 20,00,000
Gross Total Income	₹ 20,00,000	₹ 20,00,000
(now deduct all the applicable deduction, allowances, and exemptions)
Less: Standard Deduction	– ₹ 50,000	–
Less: Deductions under Section 80C	– ₹ 1,50,000	–
Less: Deductions under Section 80D	– ₹ 50,000	–
Less: House Rent Allowance (out of 5,40,000 deduction of)	– ₹ 3,00,000	–
Less: Leave Travel Allowance (out of 20,000 deduction of)	– ₹ 10,000 (bills must be submitted)	–
Total Taxable Income	₹ 14,40,000
Total Tax Payable	₹ 2,54,280	₹3,37,500

Under the old tax structure, investment in tax saving schemes can further reduce Kavita’s tax liability.

How to calculate age of senior citizen for income tax?

Answer: If you are above 60 years but less than 80 years old during the previous year, you are considered a “senior citizen”. Those above 80 years during the previous year are “super seniors”. The age of senior citizens and super seniors is calculated from April 01 of the financial year for the income tax calculator.

How to calculate income tax return?

Answer: Anyone salaried or self-employed can calculate income tax online using the income tax calculator. It is a simple, effective tool that guides you through the process. Once you fill in the details, it gives you an estimation of the taxable income and tax payable.

Which income is not taxable in India?

Answer

The following incomes are tax-free.

1) Agricultural income

2) Receipts by an individual from Hindu Undivided Family

3) Share from a Partnership Firm or LLP, which has been separately assessed for income tax

4) NRI tax free incomes

5) Certain types of incomes earned by foreigners

# Commutation of pension

# Gratuities

# Voluntary retirement or separation payment

# Leave salary

# Insurance sum assure

6) Money received from government-recognised provident fund (PF), approved superannuation fund or PPF

7) Certain types of interest income

What is the maximum non-taxable income limit?

Answer

Individuals less than 60 years with an income up to Rs.2.5 lakhs are exempted from tax, under both tax regimes.

Under the old tax regime, senior citizens (60-80 years) are exempted from paying tax up to Rs. 3 lakhs and super citizens (80 years+) up to Rs. 5 lakhs. Under the new tax regime, both senior citizens and super seniors are exempted from paying tax up to Rs. 2.5 lakhs.

How much tax do I pay on 10 lakh salary?

Answer

Under the income tax calculator AY 2022 23, individuals under 60 years receiving income from salary, business or investments will pay:

Old tax regime - Rs. 12,500 + 20% over Rs. 5 lakhs i.e., Rs.1,12,500

New tax regime - Rs. 37,500 + 15% over Rs. 7.5 lakhs i.e., Rs. 1,87,500

What is the income tax for 6 lakhs?

Answer: Individuals with an annual income between Rs 5 lakh and Rs 7.5 lakh would pay 10% tax as per the new tax regime calculator, and 20% as per the tax calculator old regime.

How much income is tax free in India?

Answer

As per the new tax regime calculator:

For individuals below 60 years - below Rs. 2.5 lakh

For senior citizens aged 60 to 80 years - below Rs. 3 lakhs

For super seniors aged 80+ years – below Rs. 5 lakhs

As per the tax calculator old regime:

For individuals below 60 years - below Rs. 2.5 lakh

For senior citizens aged 60 to 80 years - below Rs. 3 lakhs

For super seniors aged 80+ years – below Rs. 2.5 lakhs

What is the minimum salary to pay income tax?

Answer: Any income that that exceeds Rs. 2.5 lakhs per year will be taxed.

How much tax should I pay on my salary?

Answer: It depends on various factors. The new tax regime calculator divides income tax payers into 6 slabs and you pay tax depending on the slab you come under. The tax calculator old regime also has predetermined limits but offers more tax saving options.

How to calculate income tax on salary with old regime?

Answer: Simply enter all your details on the income tax calculator and select the calculator old regime to get a quick and easy basic tax calculation.

What is the existing rate for income tax slab (7.5-10 lakhs)?

Answer: As per income tax interest calculator, you pay 20% over Rs. 5 lakh under the old regime, and 15% over Rs. 7.5 lakh under the new regime.

Which tax regime is better for me?

Answer: Before choosing the tax regime, consider your income structure and available deductions. Use the calculator old regime to calculate your tax liability after considering income from all sources and availing all the eligible exemptions and deductions. Then use the new tax regime calculator to compute your tax liability according to the tax slab rates given under it. Now compare the two to see which suits you better.

Can I switch between tax regimes?

Answer: Yes, you can switch between the old and new tax regimes every year.

Has the 80C exemption been scrapped?

Answer: Section 80C has not been scrapped and still entitles you to certain deductions under the old tax regime, allowing you to reduce your taxable income by Rs 1,50,000.