Income Tax Calculator
Estimate your income tax under FY 2024-25 old and new regimes, including cess.
What this calculator does
Nobody enjoys calculating their income tax, but doing it once a year — instead of once when you file ITR — quietly changes your relationship with money. You stop treating tax as a mystery deduction and start treating it as a fixed cost you can plan around.
Under the current Indian tax system, you have two options: the old regime (higher slabs, but tons of deductions like 80C, 80D, HRA, LTA, home loan interest under Section 24) and the new regime (lower slabs, but almost no deductions). This calculator handles both so you can compare side by side. Most first-job earners without a home loan end up better off under the new regime. Most people with a home loan and full 80C usage end up better off under the old regime.
Do this every February, not every July. That gives you two months to top up your ELSS SIP, buy that health insurance policy for your parents (Section 80D), or make the extra PPF contribution — before the financial year closes. Waiting till ITR filing in July means you've already missed the window.
Tax = Σ (slab × rate) + 4% Health & Education CessVariables explained
- Gross annual income
Salary + interest + rental + capital gains + any other income before deductions.
- Deductions
Under old regime: 80C (₹1.5L), 80D (₹25K/₹50K), 80CCD(1B) NPS extra (₹50K), Section 24 home loan interest (₹2L), HRA if applicable, standard deduction (₹50K). Under new regime: mostly only standard deduction (₹75K FY25-26).
- Regime
Old vs new. New is default from AY 2024-25 unless you opt for old.
Worked example: ₹15 lakh salary, comparing regimes
Old regime with full 80C (₹1.5L) + 80D (₹25K) + 80CCD(1B) NPS (₹50K) + standard deduction (₹50K) = ₹2.75L deductions. Taxable income: ₹12.25L. Tax (approx, FY24-25 slabs): ~₹1.85L + 4% cess ≈ ₹1.93L.
New regime with only standard deduction of ₹75K (FY25-26). Taxable income: ₹14.25L. Tax (approx, new slabs): ~₹1.20L + 4% cess ≈ ₹1.25L.
New regime saves ~₹68,000. But if you also have a ₹2L home loan interest deduction available in old, old regime saves ~₹35,000. Comparison flips based on your specific deductions.
Making the tax number smaller (legally)
The number this calculator spits out is what you'd pay if you did nothing. Almost everyone can reduce it — the question is how much effort you want to put in, and whether the old or new regime works better for you.
Under the old regime: Section 80C (EPF, PPF, ELSS, life insurance, home loan principal) gives ₹1.5 lakh of deductions. Section 80D (health insurance) adds ₹25,000 (₹50,000 for senior citizen parents). Section 24 lets you claim up to ₹2 lakh on home loan interest for a self-occupied property. HRA, LTA, and NPS 80CCD(1B) can add more.
Under the new regime, most deductions disappear, but slabs are lower and the 87A rebate is more generous. If you have a home loan and use most of your 80C, the old regime is often better. If you don't, the new regime usually wins. Run this calculator both ways.
Don't invest in ELSS or tax-saving instruments only for the deduction. If the fund is bad, the tax saved becomes a bad investment. Pick the instrument on merit; the tax benefit is a bonus.
Common mistakes
- ✗Choosing a regime by hearsay. Always run both.
- ✗Investing in ELSS only for tax and holding a bad-performing fund for 3 years.
- ✗Ignoring 80CCD(1B) — an extra ₹50K NPS deduction on top of 80C.
- ✗Not claiming HRA properly — you can even claim HRA when paying rent to parents (with genuine documentation).
- ✗Waiting till the last week of March to buy tax-saving products.
Frequently asked questions
Is the new regime always better?+
Not always. If your total deductions exceed ~₹3.5L (with 80C + 80D + HRA + home loan interest), old regime often wins. Always simulate both.
Can I switch regimes every year?+
Salaried employees can switch every year. Business/professional income owners can switch old→new only once.
What income is tax-free in India?+
Under new regime FY25-26, income up to ₹7 lakh is effectively tax-free due to Section 87A rebate. Above that, slabs apply.
Does EPF withdrawal attract tax?+
No — if you complete 5 continuous years of service, EPF withdrawal is fully tax-free under EEE status.
Is HRA available under the new regime?+
No. HRA exemption is only under the old regime. This alone tilts many rent-payers back to old regime.
Reminder: this calculator is a learning tool, not personalised advice. For decisions involving your actual money, talk to a SEBI-registered adviser about your specific situation.