Income Tax Calculator — India FY 2024-25
Enter your annual income, choose your tax regime, and optionally add deductions to see your exact income tax liability, effective tax rate, and monthly tax outflow.
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Income Tax in India — An Overview
Income tax is a direct tax levied by the Government of India on your annual earnings. The tax is calculated on your total taxable income for the financial year (April 1 to March 31) and is governed by the Income Tax Act, 1961. Every individual with a gross income exceeding the basic exemption limit is required to file an income tax return (ITR).
As of FY 2024-25, individual taxpayers can choose between two tax regimes — the New Tax Regime (introduced in 2020 and made the default from FY 2023-24) and the Old Tax Regime. Each regime has different tax slabs and deduction rules, and the best choice depends on your income level and the deductions you are eligible for.
Tax Slabs — New vs Old Regime (FY 2024-25)
New Tax Regime
Standard deduction: ₹50,000 | Rebate u/s 87A: up to ₹25,000
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Old Tax Regime
Standard deduction: ₹50,000 | Rebate u/s 87A: up to ₹12,500
| Income Slab (Below 60) | Tax Rate |
|---|---|
| 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% |
All slabs are after applying the standard deduction. A 4% Health and Education Cess is added on the final tax amount. Senior citizens (60–80 years) get a basic exemption of ₹3 lakh, and super senior citizens (80+) get ₹5 lakh under the old regime.
New Regime vs Old Regime — Which is better for you?
The New Tax Regime offers lower tax rates but does not allow most common deductions such as Section 80C, 80D, HRA, or LTA. It is beneficial for individuals who do not have many tax-saving investments or those with relatively lower incomes.
The Old Tax Regime has higher slab rates but allows a wide range of deductions. If you invest ₹1.5 lakh under Section 80C (PPF, ELSS, life insurance, etc.), claim HRA, and have a health insurance premium, the old regime may result in a lower tax outgo — particularly if your income is above ₹10 lakh.
Use the calculator above to compare your tax liability under both regimes based on your actual income and deductions. Switch the tab and enter the same income to see which one saves you more.
Key Deductions under the Old Tax Regime
| Section | Eligible Investments / Expenses | Max Deduction |
|---|---|---|
| 80C | PPF, ELSS, EPF, Life Insurance, NSC, 5-yr FD, Tuition Fees, Home Loan Principal | ₹1,50,000 |
| 80D | Health insurance premiums (self, spouse, children, parents) | ₹25,000 – ₹1,00,000 |
| 80CCD(1B) | Additional NPS contribution (over 80C limit) | ₹50,000 |
| Standard Deduction | Available to all salaried and pensioners automatically | ₹50,000 |
| HRA | House Rent Allowance — actual rent minus 10% of salary or 40/50% of salary | Actual calculation |
| Section 24(b) | Home loan interest on self-occupied property | ₹2,00,000 |
Frequently Asked Questions
Who has to pay income tax in India?
Any individual whose gross total income exceeds the basic exemption limit (₹2.5 lakh under old regime, ₹3 lakh under new regime for those below 60) must file an income tax return. If tax is due, it must be paid before the ITR deadline.
What is Section 87A rebate?
Under the old regime, if your net taxable income is ₹5 lakh or less, you are entitled to a rebate of up to ₹12,500, effectively making your tax liability nil. Under the new regime, the rebate is up to ₹25,000 for income up to ₹7 lakh, also resulting in zero tax.
What is Health and Education Cess?
The government levies a 4% cess on your income tax (after rebate) to fund health and education programmes. This cess is applied uniformly under both tax regimes.
Can I switch between new and old regime every year?
Salaried individuals without business income can switch between the two regimes every financial year when filing their ITR. Those with business income can switch back to the old regime only once in a lifetime.
Is this calculator accurate for surcharge cases?
This calculator covers the most common individual tax scenarios (income up to ₹50 lakh). Surcharge applies at higher incomes (10% on income above ₹50 lakh, 15% above ₹1 crore, etc.) and is not included here. Please consult a CA for high-income scenarios.
This calculator is for general information purposes only and is based on FY 2024-25 tax slabs. Tax laws change frequently. For precise calculations, surcharge applicability, or professional advice, please consult a qualified Chartered Accountant or visit the official Income Tax India website at incometax.gov.in.