Income Tax Calculator (India)
The Income Tax Calculator estimates your income tax under both the old and new tax regimes in India. It helps you compare which regime results in lower tax for your income level.
Income Tax Calculator (India)
Currency
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What the result means
Income tax is calculated on a slab basis — different portions of your income are taxed at different rates. The new regime offers lower rates but no deductions, while the old regime has higher rates but allows deductions like 80C, HRA, and home loan interest.
How to use this calculator
- 1Enter your annual taxable income in rupees.
- 2Select the tax regime (new or old).
- 3Press Calculate to see your estimated income tax.
- 4Compare both regimes to see which is more beneficial for you.
- 5Note that the new regime has lower rates but fewer deductions.
The formula
The calculation uses a standard, verifiable formula. Here it is in its simplest form.
Tax is calculated on income slabs:
New regime: 0-3L (0%), 3-7L (5%), 7-10L (10%), 10-12L (15%), 12-15L (20%), 15L+ (30%)
Old regime: 0-2.5L (0%), 2.5-5L (5%), 5-10L (20%), 10L+ (30%)
Plus 4% cess on tax
What each variable means
| Symbol | Name | Description |
|---|---|---|
| I | Taxable income | Your annual income after applicable deductions. |
| R | Regime | The tax regime you choose (new or old). |
Step-by-step example
Example: ₹8,00,000 income under new regime
Annual taxable income:₹8,00,000Tax regime:New
- 1First ₹3,00,000: 0% = ₹0
- 2Next ₹4,00,000 (3L-7L): 5% = ₹20,000
- 3Next ₹1,00,000 (7L-8L): 10% = ₹10,000
- 4Tax = ₹30,000
- 5Cess (4%) = ₹1,200
- 6Total = ₹31,200
Result
≈ ₹31,200
What changes the result
- The new regime has lower rates but no deductions.
- The old regime allows deductions like 80C, HRA, and home loan interest.
- A rebate under Section 87A makes tax zero for income up to ₹7 lakh (new) or ₹5 lakh (old).
- A 4% health and education cess is added to the tax.
Edge cases to be aware of
Unusual situations handled correctly
- Income up to ₹7 lakh (new) or ₹5 lakh (old) may have zero tax due to the 87A rebate.
- Surcharge applies to very high incomes (above ₹50 lakh).
- The calculator uses simplified slabs; actual tax may vary with deductions.
Common mistakes
Avoid these errors
- Forgetting the 4% cess.
- Not considering the 87A rebate.
- Choosing a regime without comparing both options.
Assumptions
- The income is your taxable income after standard deductions.
- FY 2024-25 tax rates apply.
- No surcharge applies (income below ₹50 lakh).
Limitations
- Does not account for all deductions and exemptions.
- Surcharge for high incomes is not included.
- This is an estimate; consult a tax professional for accurate filing.
Frequently asked questions
Which tax regime is better?+
It depends on your deductions. If you claim significant deductions (80C, HRA, home loan), the old regime may be better. If you have few deductions, the new regime's lower rates may win.
What is the 87A rebate?+
Section 87A provides a rebate that makes tax zero for income up to ₹7 lakh under the new regime and ₹5 lakh under the old regime.
What is the cess?+
A 4% health and education cess is added to the income tax amount. It is calculated on the total tax before the cess is applied.