इंकम टॅक्स कॅलक्युलेटर काय आहे?

An income tax calculator is a digital tool allowing taxpayers to estimate their income tax liabilities quickly and accurately. By entering key details, such as annual income, deductions, exemptions, and the financial year in question, users can find out the amount of tax payable.

It is particularly beneficial for individuals and businesses looking to plan their taxes effectively without delving into complex tax laws. Whether you are fully aware of how income tax is calculated or not, the online tool can help you out quickly by making all the essential calculations for you based on the inputs you provide. For instance, if you're a salaried individual, a salary tax calculator will help you understand how your income from employment is taxed.

With the introduction of the new tax regime alongside the old regime, taxpayers now have two systems to choose from. An online income tax calculator simplifies this by comparing the tax liability under both regimes. It aids taxpayers in selecting the one most advantageous for their financial situation.

असे प्लॅन्स जे तुम्हाला आवडतील!

IndiaFirst Life Radiance Smart Invest Plan

Product Image
Product Name
Dropdown Field: गुंतवणूक
Product Description: तुम्ही अशा एखाद्या प्लान बद्दल ऐकले आहे का, जो तुम्हाला लाईफ कव्हरसोबत संपत्तीच्या निर्माणात देखील मदत करतो? 1 प्लानमध्ये 2 लाभांचा इंडियाफर्स्ट लाईफ रेडियन्स स्मार्ट इनव्हेस्ट प्लानसोबत आस्वाद घ्या.
Product Benefits: शून्य निधी वाटप (फंड ॲलोकेशन) शुल्क
10 विविध फंडांमधून निवड शक्य
3 प्लान विकल्प
उच्च परताव्यासाठी 100% रक्कम गुंतवली जाते.
लाईफ कव्हर
Porduct Detail Page URL: कोट मिळवा
Product Buy Now URL and CTA Text: अधिक जाणून घ्या

Indiafirst Life Guaranteed Single Premium Plan

Product Image
Product Name
Dropdown Field: गारंटीड रिटर्न
Product Description: तुमच्या गुंतवणूकींवर 7 x परतावा मिळाला तर आश्चर्य वाटेल नाही का? तुमचा शोध इथे संपतो! या सिंगल पेमेंट प्लॅनसोबत, तुम्ही तुमची आर्थिक उद्दिष्टे साध्य करु शकता.
Product Benefits: गुंतवणूकीवर खात्रीशीर 7 x रिटर्न्स
एकदाच पेमेंट (सिंगल पे)
कराच्या बचतीचे लाभ
11.25 पटीने जास्त असलेले लाईफ कव्हर
Porduct Detail Page URL: कोट मिळवा
Product Buy Now URL and CTA Text: अधिक जाणून घ्या

IndiaFirst Life Guarantee Of Life Dreams Plan

Product Image
Product Name
Dropdown Field: गारंटीड रिटर्न
Product Description: आपल्या स्वप्नांना पाठिंबा द्यायला जर आपल्याकडे उत्पन्नाचा दुसरा स्त्रोत असेल तर किती चांगले होईल नाही का? तुमच्या स्वप्नांना सत्यात आणण्याचा हा एक मार्ग आहे, ज्यायोगे तुम्ही 1ल्या महिनाअखेरीपासून उत्पन्न मिळवण्यास सुरुवात करु शकता.
Product Benefits: 3 उत्पन्न विकल्पांमधून निवड करता येईल
गॅरंटी असलेले दीर्घकालीन उत्पन्न
ऑनलाइन खरेदीवर 5%पर्यंत अतिरिक्त उत्पन्न
लाईफ इन्श्युरन्स कव्हर
Porduct Detail Page URL: कोट मिळवा
Product Buy Now URL and CTA Text: अधिक जाणून घ्या

IndiaFirst Life Guaranteed Pension Plan

Product Image
Product Name
Dropdown Field: रिटायरमेंट
Product Description: तुमच्या सोन्यासारख्या वर्षांना ख-या अर्थाने सोनेरी बनवा! गॅरंटेड पेन्शन प्लानमध्ये गुंतवणूक करा, ज्याची रचना तुमच्या हयातभर उत्पन्न निर्माणासाठी झालेली आहे.
Product Benefits: निवृत्तीनंतर नियमित उत्पन्न मिळवा
5 विविध प्रकारच्या ॲन्युइटींमधून निवडा
खरेदी किमतीचा परतावा
गंभीर आजारांविरुध्द कव्हर
Porduct Detail Page URL: कोट मिळवा
Product Buy Now URL and CTA Text: अधिक जाणून घ्या

इंकम टॅक्स कॅलक्युलेटर कसे वापरायचे?

Using an online tax calculator is a simple and efficient way to determine your tax liability.

Here's a step-by-step guide.

टप्पा 1

Select the Financial Year

Begin by choosing the relevant financial year (for example, FY 2024-25, FY 2023-24, or FY 2022-23).

टप्पा 2

Input Personal Details

Enter your age group (below 60 years, between 60–80 years, or above 80 years) as tax slab rates differ based on age.

टप्पा 3

Provide Income Details

Add your income from various sources, such as:

Salary
Income from house property
Capital gains
Business or professional income
Other sources, such as interest or dividends

टप्पा 4

Enter Deductions and Exemptions

Specify investments and expenses eligible for tax deductions under sections such as 80C (investments in ELSS, PPF, and others), 80D (health insurance), and 80E (education loans).

टप्पा 5

Choose Tax Regime

Indicate whether you wish to calculate taxes under the old regime or the new regime.

टप्पा 6

View the Results

The calculator will provide a comprehensive breakdown, including:

Taxable income
Tax liability
Applicable surcharge and education cess

The process can be repeated to compare results under different financial years or regimes, making the online income tax calculator an indispensable tool.

How to Calculate Gross Income from Different Sources of Income?

Gross income is the total income earned by an individual before any deductions, exemptions, or taxes are applied. In India, gross income is calculated by aggregating income from various sources, including salary, business profits, house property, capital gains, and other sources. Understanding how each source contributes to your total income is essential for accurate tax calculation and compliance.

For salaried individuals, gross income includes basic pay, allowances, bonuses, and any perquisites provided by the employer. Deductions such as the standard deduction, and exemptions, such as House Rent Allowance (HRA). are applied later to arrive at taxable income. Similarly, if you own a property, its income must be included in the calculation. This could be the rent earned or deemed rent in the case of a second property.

Income from capital gains—whether short-term or long-term—arises from the sale of assets such as stocks, mutual funds, or real estate. Business or professional income is derived after deducting operational expenses, ensuring that only the net profit is taxable. Additionally, other sources of income, such as interest from savings accounts or fixed deposits, dividends, and lottery winnings, are also added to the gross income.

Here’s a detailed breakdown of how gross income is calculated from different sources:

Income Source	Calculation Method	Example
Salary	Gross salary minus exemptions under Section 10 (e.g., HRA) and standard deduction.	Gross salary: ₹10,00,000; Standard Deduction: ₹50,000 (old regime) or 75,000 (new regime) ; Taxable salary: ₹9,50,000.
Income from House Property	Net annual value (NAV) minus deductions (e.g., 30% standard deduction, interest on home loan).	NAV: ₹2,00,000; Interest on loan: ₹1,50,000; Taxable income: ₹50,000.
Capital Gains	Short-term or long-term gains minus eligible exemptions.	Gain: ₹1,00,000; Exemption under Section 54: ₹50,000; Taxable gain: ₹50,000.
Business or Professional	Net profit as per books of accounts after deducting expenses incurred for the business.	Income: ₹5,00,000; Expenses: ₹2,00,000; Taxable income: ₹3,00,000.
Other Sources	Interest from savings, FDs, or dividends minus exemptions.	Interest: ₹1,20,000; Exemption under Section 10(34): ₹20,000; Taxable income: ₹1,00,000.

Special Considerations for Gross Income Calculation

Clubbing of Income

Certain incomes, such as those of a minor child or a spouse, may need to be included in your gross income under specific circumstances. For example, if a minor child earns income through investments made by a parent, the income is clubbed with the parent’s total income.
Tax-Free Sources

Some incomes, such as agricultural income or specific allowances, are exempt from tax but must still be declared when computing gross income. These exemptions reduce taxable income without affecting gross income.
Deductions at Source

While gross income represents total earnings, it does not account for deductions such as Tax Deducted at Source (TDS), which are credited separately during tax filing. By calculating gross income correctly, individuals can better utilize an income tax calculator to estimate their tax liability. They can ensure compliance with legal requirements and optimise their financial planning.

How to Calculate Income Tax for FY 2024-25 (AY 2025-26)?

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	– ₹ 75000
Less: Deductions under Section 80c	N/A
Less: Deductions under Section 80D	N/A
Less: Deductions under Section 80D	N/A
Less: House Rent Allowance	N/A
Less: Leave Travel Allowance	N/A
Total Taxable Income	₹ 19,50,000	₹19,25,000
Total Tax Payable	₹ 4,13,400	₹ 2,67,500

*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

Income Tax Slab Rates for New and Old Regime

Understanding income tax slabs is crucial to calculate your tax liability accurately. Below is a detailed comparison of tax slabs under the old and new regimes.

The tax slabs under the old regime are as follows:

Income Range (₹)	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,00	20%
Above ₹10,00,000	30%

For senior citizens (60–80 years), the basic exemption limit is ₹3,00,000. For super senior citizens (80+ years), it is ₹5,00,000.

The tax slabs under the new regime are as follows:

Income Slab (₹)	Tax Rate (Existing New Regime)
Up to 3 lakhs	Nil
3-7 lakhs	5%
7-10 lakhs	10%
10-12 lakhs	15%
12-15 lakhs	20%
Above 15 lakhs	30%

Income Slab (₹)	Tax Rate (Existing New Regime)
Up to 4 lakhs	Nil
4-8 lakhs	5%
8-12 lakhs	10%
12-16 lakhs	15%
16-20 lakhs	20%
20-24 lakhs	25%
Above 24 lakhs	30%

Surcharge and Education Cess:

Surcharge:
- 10% for income above ₹50 lakh upto ₹1 crore.
- 15% for income above ₹1 crore upto ₹2 crore.
- 25% for income above ₹2 crore upto ₹5 crore.
- 37% for income above ₹5 crore

Note: From 1st April 2023, the highest surcharge rate of 37% shall be reduced to 25% under the new tax regime.

Education Cess: 4% of the total tax payable, applicable under both regimes.

The choice between the old and new regimes depends on individual financial circumstances, including income composition and eligible deductions.

How to Calculate Income Tax of a Salaried Employee?

Income tax calculation for salaried employees involves a step-by-step process to determine the tax liability based on gross income, applicable exemptions, deductions, and tax rates. The calculation also varies depending on the chosen tax regime—old or new. Below is a detailed guide to calculating income tax for salaried individuals under old tax regime, along with an example for better understanding.

Step 1: Determine Gross Salary

Gross salary includes all earnings from employment, such as:

Basic Salary: Fixed monthly or annual pay.
Allowances: HRA, Special Allowance, Transport Allowance, and others.
Perquisites: Benefits such as company-provided accommodation, car, or health insurance premiums paid by the employer.
Bonuses: Annual or performance bonuses.

For instance, let’s assume the following annual income components for an employee:

Basic Salary: ₹8,00,000
HRA: ₹3,00,000
Special Allowance: ₹1,00,000
Annual Bonus: ₹50,000
Gross Salary: ₹12,50,000

Step 2: Deduct Exemptions Under Section 10

Certain components of the salary are exempt from tax under Section 10 of the Income Tax Act. These exemptions reduce the taxable portion of the salary. Examples include:

HRA: Exemption depending on the rent paid, basic salary, and city of residence.
Leave Travel Allowance (LTA): Exemption for travel within India (as per certain rules).

HRA Calculation:

The exempt amount is the least of the following:

Actual HRA received: ₹3,00,000
50% of basic salary (metro city): ₹4,00,000 (50% of ₹8,00,000)
Rent paid minus 10% of basic salary: ₹2,00,000 (₹2,80,000 - ₹80,000)

Thus, in this case, the exempt HRA is ₹2,00,000.

Taxable HRA = ₹3,00,000 - ₹2,00,000 = ₹1,00,000

Assuming no other exemptions, the taxable income becomes:

Gross Salary - Exemptions = ₹12,50,000 - ₹2,00,000 = ₹10,50,000

Step 3: Deduct Standard Deduction

Every salaried individual is eligible for a standard deduction of ₹50,000. It reduces the taxable income further:

₹10,50,000 - ₹50,000 = ₹10,00,000

Step 4: Deduct Eligible Deductions Under Chapter VI A

Under the old regime, deductions under Chapter VI A can be claimed to reduce taxable income. Some common deductions include:

Section 80C: Investments in ELSS, PPF, life insurance premiums, and home loan principal repayment (maximum ₹1,50,000).
Section 80D: Medical insurance premiums (up to ₹25,000 for individuals below 60).
Section 80E: Interest paid on an education loan.

Assume that the employee invests ₹1,50,000 in PPF under Section 80C and pays ₹20,000 as a health insurance premium under Section 80D.

The deductions are ₹1,50,000 + ₹20,000 = ₹1,70,000

Taxable Income = ₹10,00,000 - ₹1,70,000 = ₹8,30,000

Step 5: Apply the Tax Slabs

Under the old regime, the following slabs apply for individuals below 60:

Up to ₹2,50,000: Nil
₹2,50,001 – ₹5,00,000: 5%
₹5,00,001 – ₹10,00,000: 20%
Above ₹10,00,000: 30%

For a taxable income of ₹ 8,30,000, the calculation is:

First ₹2,50,000: Nil
Next ₹2,50,000 (₹2,50,001 – ₹5,00,000): 5% of ₹2,50,000 = ₹12,500
Remaining ₹3,30,000 (₹5,00,001 – ₹8,30,000): 20% of ₹3,30,000 = ₹66,000

Tax Before Cess = ₹12,500 + ₹66,000 = ₹78,500

Step 6: Add Health and Education Cess

A 4% cess is levied on the total tax payable:

Cess = 4% of ₹78,500 = ₹3,140

Total Tax Liability = ₹78,500 + ₹3,140 = ₹81,640

Tax Calculation Under New Regime

If the employee opts for the new tax regime, they forgo deductions and exemptions but benefit from lower tax rates:

Up to ₹3,00,000: Nil
₹3,00,001 – ₹7,00,000: 5% of ₹4,00,000 = ₹20,000
₹7,00,001 – ₹10,00,000: 10% of ₹3,00,000 = ₹30,000
₹10,00,001 – ₹ 11,75,000: 15% of ₹ 1,75,000 = ₹26,250

So, when calculating for FY 2024-25, the following will apply:

Tax Before Cess = ₹20,000 + ₹30,000 + ₹26,250 = ₹76,250

Cess = 4% of ₹76,250 = ₹3050

Total Tax Liability = ₹76,250 + ₹3050 = ₹79,300

Comparison of Old and New Regimes for the FY 2024-25

Aspect	Old Regime	New Regime
Gross Income	₹12,50,000	₹12,50,000
Taxable Income	₹8,50,000	₹12,50,000 - ₹75,000 (standard deduction under new tax regime) = ₹11,75,000
Deductions Allowed	Yes	No
Tax Payable (with Cess)	₹81,640	₹79300

Starting FY2025-26, the tax slab rates for the new regime would be as follows:

Total Income	Rate of Tax
Upto ₹ 4,00,000	Nil
₹ 4,00,001 to ₹ 8,00,000	5%
₹ 8,00,001 to ₹ 12,00,000	10%
12,00,001 to ₹ 16,00,000	15%
₹ 16,00,001 to ₹ 20,00,000	20%
₹ 20,00,001 to ₹ 24,00,000	25%
Above ₹ 24,00,000	30%

Things to Remember for Salaried Employees
1. Evaluate Regimes: Use an online income tax calculator to compare liabilities under both regimes.
2. Optimise Investments: Under the old regime, maximise deductions by investing in eligible instruments.
3. Claim Exemptions Wisely: As per the eligibility rules, claim HRA, LTA, and other exemptions under the old regime.

By following these steps and leveraging tools like the online income tax calculate for their salary, salaried employees can efficiently plan their taxes and save more.

What Are the Eligibility Criteria to File Income Tax?

The eligibility criteria for filing income tax in India are based on the individual's age, income level, and residential status. Below are the key parameters.

Age-Based Exemption Limits (old tax regime)
- Individuals below 60 years with an income exceeding ₹2,50,000 must file returns.
- Senior citizens (60–80 years) with income above ₹3,00,000.
- Super senior citizens (80+ years) with income over ₹5,00,000.
Income Source

If you earn income from salary, business, house property, capital gains, or other sources, and the total exceeds the basic exemption limit, filing is mandatory.
Resident Status

Both residents and non-residents need to file returns if their income in India exceeds the exemption threshold.

Filing income tax returns ensures compliance with legal requirements and helps in financial documentation for loans, visas, and other purposes. Even if you have earned exemptions based on your tax regime selection or income, filing your income tax returns is an important step to ensure compliance.

Benefits of Using Income Tax Calculator

Using an income tax calculator offers several advantages:

Accuracy: Eliminates manual errors and provides precise tax calculations.
Convenience: Quickly computes tax liabilities without the need for complex calculations.
Regime Comparison: Compares tax liability under the old and new regimes to help you choose the better option.
Tax Planning: Assists in identifying areas for investment to optimize tax savings.
Customised Results: Adapts calculations based on income, deductions, and applicable exemptions.

Income Sources Exempt from Income Tax Under the New Tax Regime

Under the new tax regime, several types of incomes are exempt from taxation, providing relief to taxpayers.

Here are key exemptions:

Agricultural Income: Income from agriculture is fully exempt under Section 10(1).
Gratuity: The amount for gratuity received by employees up to a certain limit is tax-free under Section 10(10).
Provident Fund Withdrawals: Amounts withdrawn after meeting specified conditions are tax-exempt.
Leave Encashment: At the time of retirement, leave encashment is exempt under certain limits.
Compensation for Natural Calamities: Payments received as relief for natural calamities are exempt.
Income from Minor Child: Up to ₹1,500 per child per year is exempt for parents.
Tax-Free Bonds: Interest earned from specified bonds is exempt.

Using a tax calculator for the new regime can help identify these exemptions while computing tax liabilities.

Who Should File Their Income Tax Returns?

Filing income tax returns is a crucial step for individuals to comply with tax laws. Understanding the eligibility criteria ensures you meet the necessary requirements based on your income and specific circumstances.

Income Threshold (old tax regime)

Individuals with an annual income exceeding ₹2,50,000 must file income tax returns. For senior citizens (60–80 years), the limit is ₹3,00,000, and for super senior citizens (above 80 years), it is ₹5,00,000.
Taxable Income

Filing is mandatory if your taxable income exceeds the basic exemption limit, even if no tax is payable after deductions.
Specific Transactions

Regardless of income, individuals conducting specified high-value transactions (e.g., depositing ₹1 crore or more in a savings account) must file returns.
Businesses and Professionals

Self-employed individuals, professionals, or business owners must file returns if their income exceeds the prescribed limits.
Resident vs. Non-Resident

Non-resident Indians (NRIs) must file if their income generated or accrued in India exceeds ₹2,50,000.

Filing income tax returns ensures compliance and avoids penalties, even if your income is within limits but involves specific criteria.

What Are the Exemptions/Deductions Disallowed Under the New Tax Regime?

Under the new tax regime, most exemptions and deductions available in the old regime are not allowed.

Here are some key disallowed exemptions and deductions:

Section 80C Deductions: Investments in PPF, ELSS, NSC, and life insurance premiums cannot be claimed.
House Rent Allowance (HRA): Exemption on HRA is not available, even if you pay rent.
Standard Deduction: The standard deduction of ₹50,000 is not applicable.
Leave Travel Allowance (LTA): Tax relief on travel expenses within India is not allowed.
Deductions Under Chapter VI A: Other deductions, such as 80D (health insurance premium), 80E (education loan interest), and 80G (donations), are disallowed.
Professional Tax: Deduction for professional tax paid is also not permitted.

The new tax regime focuses on simplified compliance with lower tax rates but sacrifices the flexibility of tax-saving investments and exemptions. Choose wisely based on your financial situation.

Tips on Preparing for Filing Your Income Tax Return

Gather All Documents

Collect Form 16, Form 26AS, bank statements, and details of investments and expenses to ensure you have all necessary data for accurate filing.
Choose the Right Regime

Compare the old and new regimes using an online tax calculator to determine which one is more beneficial for your income profile.
Verify Deductions and Exemptions

If opting for the old regime, ensure all eligible deductions (e.g., under Sections 80C, 80D, and 80G) and exemptions (e.g., HRA, LTA) are claimed.
Prepay Taxes

If advance tax or self-assessment tax is due, pay it before filing to avoid penalties.
Review Tax Filing Deadlines

File your return before the due date to avoid late filing fees and interest on unpaid taxes.

FAQs Related to Income Tax Calculator

Eligibility criteria to file income tax return

Answer: Individuals with total annual income exceeding the basic exemption limit are required to file income tax return. 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 under Old Tax regime.

What are the exemptions/ deductions that are not allowed under the new tax regime?

Answer: Deduction available under section 80TTA/80TTB.

Deduction for entertainment allowance.

Deduction for Professional tax paid

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, , 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc.) except deduction u/s 80CCD(2)/80CCH/80JJAA

Other Income Tax Rule Changes Announced in The Union Budget 2024

Answer: Under the new tax regime, tax slab has been revised. Further, under new tax regime rebate is up to Rs. 25,000 is applicable if the total income does not exceed RS. 7 Lakhs. Additionally, standard deduction has also been increased from existing Rs. 50,000 to Rs. 75,000 under the new tax regime. 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 typically 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 an example for the old tax regime.

Basic Salary + HRA + Special Allowance + Transport Allowance + any other allowance + perquisites = 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:

Particulars	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	– ₹ 75,000
Less: Deductions under Section 80C	– ₹ 1,50,000	–
Less: Deductions under Section 80D (For Self/Spouse as well as Parents maximum up to Rs. 50,000)	– ₹ 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	₹ 19,25,000
Total Tax Payable	₹ 2,54,280	₹ 2,78,200

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

HRA and LTA are subject to fulfillment of various condition.

How to calculate age of senior citizen for income tax?

Answer: If you are 60 years old but less than 80 years old at any time during the previous year, you are considered a “senior citizen”. Those who are 80 years old or above at any time during the previous year are “super seniors citizen”. The age of senior citizens and super seniors citizen is calculated from April 1st of the financial year for the income tax calculator.

How to calculate income tax?

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: Certain incomes, such as agricultural income, interest earned from tax-free bonds, and gifts received within specified limits, are exempt from income tax. These exemptions aim to provide relief and incentivize savings and investments.

What is the maximum non-taxable income limit?

Answer: For individuals below 60 years, the non-taxable income limit is ₹2,50,000. The limit increases to ₹3,00,000 for senior citizens (60–80 years) and ₹5,00,000 for super senior citizens (80+ years). Upon the selection of the new regime for income within ₹12 lakhs, the taxpayer would earn a full exemption on their tax liability as per the budget announcement of 2025, starting next financial year.

How much tax do I pay on a ₹10 lakh salary?

Answer: Under the old regime, a ₹10 lakh salary incurs ₹1,12,500 in taxes after applying the applicable slabs and exemptions. Under the new regime for the year 2024-25, the tax payable is ₹ 50,000, excluding additional deductions and cess. Starting financial year 2025-26, there would be no tax payable for an income of up to ₹12 lakhs, unless any separately taxable elements are involved.

What is the income tax for ₹6 lakhs?

Answer

Under the new regime for the current year, income of ₹7 lakhs is taxed at 5%, resulting in a tax liability of ₹ 20,000. After applying rebates such as Section 87A (if eligible), the liability could be significantly reduced or eliminated.

Starting FY 2025-26, the tax owed for an income of ₹7 lakhs would be zero.

How much income is tax free in India?

Answer

As per the new tax regime calculator:

For individuals below 60 years - below Rs. 7 lakh

For senior citizens aged 60 to 80 years - below Rs. 7 lakhs

For super seniors aged 80+ years – below Rs. 7 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. 5 lakhs

What is the minimum salary to pay income tax?

Answer: Any salary exceeding ₹2,50,000 annually requires income tax payment for individuals under 60. However, rebates under Section 87A may apply to reduce liability for incomes up to ₹5,00,000. The rules are expected to relax further in the coming years upon the introduction of the new bill. You can use an income tax calculator to estimate your tax liability based on your income, financial year, and your chosen tax regime.

How much tax should I pay on my salary?

Answer: The tax on your salary depends on your gross income, deductions, and the selected tax regime. Use a salary income tax calculator to determine the precise tax amount.

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 (7-10 lakhs)?

Answer: As per income tax interest calculator, you pay 20% over Rs. 5 lakhs under the old regime, and 10% over Rs. 7 lakhs under the new regime.

Which tax regime is better for me?

Answer: The suitability of a tax regime depends on your income composition and eligibility for deductions. Comparing both regimes using an income tax calculator can help you determine the more beneficial option. Whether you choose the old or the new regime, income tax calculators are a helpful and free tool allowing you to see the bigger picture.

Can I switch between tax regimes?

Answer: Yes, salaried taxpayers can switch between regimes annually during ITR filing. However, individuals with business income can switch only once to the new tax regime and must adhere to that choice in subsequent years.

Has the 80C exemption been scrapped?

Answer: The 80C exemption is not available under the new tax regime. However, it remains applicable under the old regime for investments such as ELSS, PPF, and life insurance premiums.

What is professional tax?

Answer: It is a state-level tax imposed on individuals earning a salary or practicing a profession, such as doctors, lawyers, or freelancers. It is deducted by employers and varies across states, with a maximum annual limit of ₹2,500.

How to calculate income tax return?

Answer: To calculate your income tax return, aggregate your income from all sources, subtract eligible deductions, and apply the appropriate tax slab rates. Using a total income tax calculator simplifies this process and ensures accuracy.

How much income is tax-free in India?

Answer: Presently, income up to ₹2,50,000 for individuals under 60 is tax-free. With rebates and exemptions, individuals earning up to ₹5,00,000 under Section 87A can also have zero tax liability. Under the new regime, starting FY 2025-26, income under ₹4 lakhs would incur zero tax liability. However, with all exemptions offered, the limit would be ₹12 lakhs.

Can I use the income tax calculator if I have income from multiple sources?

Answer: Yes, an online income tax calculator allows you to input earnings from salary, house property, business, capital gains, and other sources. It ensures accurate tax calculations for complex income streams.

What is the difference between the old and new tax regimes?

Answer: The old tax regime offers deductions and exemptions, while the new tax regime has lower tax rates but disallows most deductions. The choice depends on your income structure and investment habits.