Income Tax Calculator
Calculate income tax - old vs new regime
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About Income Tax Calculator
An Income Tax Calculator helps you calculate your tax liability for a financial year. With the introduction of the new tax regime, taxpayers can now choose between old regime (with deductions) or new regime (lower rates, no deductions). This calculator helps you compare both regimes and choose the better option.
How is Income Tax Calculated?
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Calculate gross total income from all sources (salary, business, property, etc.)
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Subtract deductions (only in old regime) like 80C, 80D, HRA, etc.
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Apply tax slabs based on chosen regime and age category
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Add 4% Health and Education Cess on calculated tax
Example:
For ₹12 lakhs income under new regime: Tax = ₹20,000 (on 3-7L) + ₹30,000 (on 7-10L) + ₹30,000 (on 10-12L) = ₹80,000. After 25k rebate and 4% cess = ₹57,200 total tax. Take home = ₹11.43 lakhs.
Key Benefits
Regime Comparison: Compare old vs new regime to choose the better option for your income
Tax Planning: Plan investments in 80C, 80D to minimize tax liability
Accurate Calculation: Calculate exact tax including all deductions and cess
Budget Planning: Know your take-home salary after tax deduction
Avoid Penalties: Ensure correct tax payment to avoid interest and penalties
Investment Decisions: Understand tax benefit of different investment options
Frequently Asked Questions
Which is better - old or new tax regime?
It depends on your deductions. If you have deductions above ₹2-2.5 lakhs (80C, HRA, home loan, etc.), old regime is usually better. If you have minimal deductions, new regime with lower rates works out better. Use the calculator to compare both.
Can I switch between regimes every year?
Yes, salaried individuals can switch between old and new regime every year while filing ITR. Business owners can switch only once. Choose based on your deductions for that particular year.
What deductions are available under Section 80C?
80C includes PPF, EPF, Life Insurance premiums, ELSS mutual funds, Principal repayment on home loan, NSC, SSY, children's tuition fees. Maximum deduction is ₹1.5 lakhs. Available only in old regime.
Do I need to pay tax if income is below ₹7 lakhs?
Under new regime, if income is below ₹7 lakhs, you get full rebate under Section 87A and pay zero tax. Under old regime, income up to ₹2.5 lakhs is tax-free (₹3 lakhs for senior citizens, ₹5 lakhs for super senior citizens).
What is Section 80D deduction for health insurance?
Section 80D allows deduction for health insurance premiums: ₹25,000 for self, spouse, and children; additional ₹25,000 for parents (₹50,000 if parents are senior citizens). Senior citizens can claim ₹50,000 for themselves. Maximum total: ₹1 lakh per year. Preventive health checkup of ₹5,000 is included within these limits. Only in old regime.
What is standard deduction and who can claim it?
Standard deduction of ₹50,000 is available to all salaried individuals and pensioners under both old and new regime. It's a flat deduction from gross salary, no proof required. Helps reduce taxable income automatically. Family pensioners get ₹15,000 standard deduction.
How to save maximum income tax legally?
To minimize tax in old regime: Maximize 80C (₹1.5L via PPF, ELSS, EPF), claim 80D (₹25-50K for insurance), HRA exemption if renting, home loan interest (₹2L under Section 24), NPS additional 80CCD(1B) (₹50K). In new regime, utilize lower tax slabs with no deduction planning needed.
What is TDS and how does it affect my tax?
TDS (Tax Deducted at Source) is tax deducted by employer/payer before paying you. It's an advance tax payment. Your total TDS is adjusted against final tax liability when filing ITR. If TDS > actual tax, you get refund. If less, you pay balance. Check Form 26AS for TDS details.
When should I file Income Tax Return (ITR)?
ITR filing deadline is July 31 for individuals (extended sometimes). File ITR if: income above basic exemption limit, claiming refund, filing for visa/loan, income from business/foreign assets, or deposited ₹1 crore+ in bank. Even if income is below limit, filing ITR is recommended for financial records.
What happens if I don't file ITR on time?
Late filing penalties: ₹5,000 if filed by Dec 31, else ₹10,000. For income below ₹5 lakhs, maximum penalty ₹1,000. Interest charged on unpaid tax at 1% per month. Cannot carry forward losses. May face difficulty in loan approvals, visa applications, and receiving tax refunds.
Can I claim both HRA and home loan deductions?
Yes, you can claim both if you're living in rented house while owning property elsewhere. HRA exemption for rent paid, and Section 24(b) deduction (₹2 lakhs) on home loan interest for owned property. Both available only in old regime. Ensure properties are different and both are self-occupied or rented.
What is Section 24 deduction on home loan?
Section 24(b) allows deduction of ₹2 lakhs per year on home loan interest for self-occupied property. For let-out property, entire interest is deductible. Pre-construction interest can be claimed in 5 equal installments. Principal repayment comes under 80C (₹1.5L limit). Only available in old regime.