Income Tax Calculator
According to latest Budget 2024
Frequently asked questions
How to calculate income tax?
To calculate income tax, enter your in-hand income in the "Income" field, and enter deductions in "Deductions" field. Then, press the "Calculate" button to view the amount of tax owed under both tax regimes. Choose the option with the lower tax amount. For a detailed breakdown of the calculation, click on the "Show Breakdown" button.
How to calculate income tax manually on salary with example?
Calculating income tax on salary involves using tax slabs, which are ranges of income that are taxed at a specific rate. For example, consider an individual earning 10 lakhs per annum under the new tax regime.
- The first 3 lakhs are tax-free.
- The next 3 lakhs (6 - 3 = 3 lakhs), are taxed at 5%, resulting in a tax of 15,000 (3 lakhs x 5%).
- The next 3 lakhs (9 - 6 = 3 lakhs) are taxed at 10%, which results in a tax of 30,000 (3 lakhs x 10%).
- Lastly, the last 1 lakh (10 - 9 = 1 lakh) is taxed at 15%, which results in a tax of 15,000 (1 lakh x 15%).
- In total, the tax amount is 60,000 (15,000 + 30,000 + 15,000).
What are the tax slabs in new tax regime?
The new tax regime had the following tax slabs:
Under the new tax regime, a tax rebate of up to 7 lakh is available. This means that if the taxable income is 7 lakh the payable tax would be zero.
| Tax Slab | Tax Rate |
| 0 to 3 lakh | 0% |
| 3 to 6 lakh | 5% |
| 6 to 9 lakh | 10% |
| 9 to 12 lakh | 15% |
| 12 to 15 lakh | 20% |
| Above 15 lakh | 30% |
What are the tax slabs in old tax regime?
The old tax regime had the following tax slabs:
Under the old tax regime, a tax rebate of up to 5 lakh is available. This means that if the taxable income is 5 lakh the payable tax would be zero.
| Tax Slab | Tax Rate |
| 0 to 2.5 lakh | 0% |
| 2.5 to 5 lakh | 5% |
| 5 to 10 lakh | 20% |
| Above 10 lakh | 30% |
What is the difference between old and new tax regime?
The two regimes have different tax slabs, which are presented below:
Old tax regime:
| Tax Slab | Tax Rate |
| 0 to 2.5 lakh | 0% |
| 2.5 to 5 lakh | 5% |
| 5 to 10 lakh | 20% |
| Above 10 lakh | 30% |
New tax regime:
| Tax Slab | Tax Rate |
| 0 to 3 lakh | 0% |
| 3 to 6 lakh | 5% |
| 6 to 9 lakh | 10% |
| 9 to 12 lakh | 15% |
| 12 to 15 lakh | 20% |
| Above 15 lakh | 30% |
Additionally, the old regime offered a tax rebate of up to 5 lakhs while the new regime offers a tax rebate of up to 7 lakhs. Standard deduction of 50,000 is available with no income requirement in both regimes.
Is 80C deduction available in new tax regime?
No, Under the new tax regime, the 1.5 lakh tax exemption under section 80C of the Income Tax Act of India is not valid. This exemption is only offered in the old tax regime.
Which deductions are allowed in new tax regime?
In the new tax regime, only standard deduction of Rs. 50,000 is applicable for salaried individuals. No other deductions such are offered under the new regime. For non-salaried income, such as business income or rental income, there are no deductions offered under the new tax regime. It is advisable to consult a Chartered Accountant for more personalized tax planning and calculation.
Is 80C limit increased in new bugget annoucement?
No, the 1.5 lakh limit exemption under 80C of Income Tax act has not been increased in the 2023 budget announcement.
Is standard deduction available in new tax regime?
Yes, standard deduction is available in the new tax regime without any income requirement.
Which tax regime is beneficial for me?
Input income in "Income" field and deductions in "Deductions" field. Press "Calculate" button. If "Old tax regime" appears green, the old regime is more beneficial. If "New tax regime" appears green, the new regime is more favorable. It's recommended to consult a CA before filing your income tax return.
Which tax regime is beneficial for higher salary?
Income exceeding 15.5 lakhs generally favors the new tax regime. If income is below 15.5 lakhs, benefits depend on deductions. The higher the deductions, the more likely the old regime is favorable. Use the calculator before making a decision. It's recommended to consult a CA before filing your income tax return.
What deductions are available in old tax regime?
The following are the popular deductions among the tax payers:
- Section 80C: eligible for tax benefits by investing in life insurance, ELSS funds, PPF, etc.
- Section 80CCD: eligible for tax benefits by investing in National Pension Scheme (NPS).
- Section 80D: eligible for tax benefits by having medical insurance for you or your family.
- Section 80EEA: eligible for tax benefits for interest paid on a home loan.
Which is the difference between exemption and deduction?
Exemption refers to income that is not considered part of your taxable income and is not subject to taxation as determined by the government. For example, income from agriculture and house rent allowance (HRA) are exempt from taxes under certain conditions. On the contrary, deductions are applied to taxable income, which is income that has already been taxed. You can subtract deductions from your taxable income to reduce the amount of tax you owe. Deductions can include expenses such as interest paid on an education loan, medical insurance premiums, and certain mutual fund investments. Salaried taxpayers can also claim a standard deduction of Rs.50,000 from their gross salary to reduce their total taxable income and, in turn, reduce the tax payable.
Why is surcharge added to the calculation?
Surcharge is applicable when the taxable income is greater than 50 lakhs. The surcharge percentage depends on the taxable income and the regime you choose. The surcharge percentages are as follows for each regime:
Old regime:
| 50 lakhs to 1 crore | 10% |
| 1 crore to 2 crore | 15% |
| 2 crore to 5 crore | 25% |
| Greater than 5 crore | 37% |
New regime:
| 50 lakhs to 1 crore | 10% |
| 1 crore to 2 crore | 15% |
| Greater than 2 crore | 25% |
Disclaimer
I am a Software Professional; not a Chartered Accountant.
This tax calculator has been created with the information available to me. I do not claim this to be 100% accurate.
This tax calculator can be used for tax planning to calculate the approximate tax payable by salaried individuals. This should NOT be used to compute the actual taxes to be paid to the Government. I am not resposible for any inaccuracies in the tax computed by this calculator.
If you find any inaccuracy or error, please let me know at the feedback form and I will try to fix it at the earliest.