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Income Tax Calculator

Calculate your taxes easily with our free online tax calculator. Get accurate tax estimates for salary, income, and deductions to plan your finances effectively.

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How Your Tax is Calculated

Understanding the Indian Income Tax system

The Indian Income Tax system provides two taxation regimes for individuals: the Old Tax Regime and the New Tax Regime. Below is a detailed explanation of how tax is calculated in both regimes, including considerations for financial year, income slabs, deductions, exemptions, and age-based categories.

Understanding the Financial Year

The financial year in India starts from 1st April of a year and ends on 31st March of the following year. Your income earned during this period is assessed in the subsequent assessment year.

Old Tax Regime

Claim deductions & exemptions

  • Income Slabs

    Tax is calculated based on predefined income slabs.

  • Deductions allowed

    80C (up to 1.5L), 80D (health), and HRA exemptions.

  • Age-Based Slabs

    Senior citizens enjoy higher exemption limits.

New Tax Regime

Lower rates, simplified

  • Lower Income Slabs

    Lower tax rates up to 15 Lakhs of income.

  • No Deductions

    Standard deduction of 50k is allowed, but no 80C/80D.

  • Simplicity

    Beneficial if you do not have significant investments.

Age-Based Categories

Age plays a significant role in determining the tax liability.

Exemption Limits in Old Regime

Below 60 years: Standard exemption up to ₹2,50,000.

Senior Citizens (60–80 years): Exemption limit up to ₹3,00,000.

Super Senior Citizens (Above 80 years): Exemption limit up to ₹5,00,000.

Note: The tax system is complex, and this calculator provides an approximate value. For detailed tax planning and professional advice, consult S. Shekhar & Co. (SSCOindia).

Tax Calculator

Estimate your taxes under both regimes

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Why Use Our Calculator?

  • Quick & Easy
  • Compare Old vs New
  • Updated for 2024-25
  • 100% Free
Choosing the Right Regime (Example)

Deciding between the old and new tax regimes depends on your income, investments, and eligible deductions. Let’s take an example to compare the two regimes for an income of ₹10,00,000.

Under the Old Regime:

  • Income: ₹10,00,000

  • Deductions: ₹1,50,000 (Section 80C)

  • Taxable Income: ₹8,50,000

  • Total Tax Liability: ₹12,500 + ₹70,000 = ₹82,500

Under the New Regime:
Income:
₹10,00,000
Deductions:
Not Applicable
Taxable Income:
₹10,00,000

Tax Calculation Breakdown:

  • Up to ₹3,00,000: ₹0
  • ₹3L to ₹6L (5%): ₹15,000
  • ₹6L to ₹9L (10%): ₹30,000
  • ₹9L to ₹10L (15%): ₹15,000
Total Tax Liability: ₹60,000

Frequently Asked Questions

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The Old Tax Regime allows individuals to claim various deductions and exemptions, such as under Section 80C and HRA. The New Tax Regime offers lower tax rates but removes most deductions and exemptions. Choosing the right regime depends on your income, investments, and eligible deductions.

Age plays a significant role in tax calculations under the Old Tax Regime. Individuals below 60 years have a basic exemption limit of ₹2,50,000, while senior citizens (60–80 years) enjoy an exemption limit of ₹3,00,000. Super senior citizens (above 80 years) have an even higher exemption limit of ₹5,00,000.

Under the Old Tax Regime, you can claim deductions such as investments in EPF, PPF, life insurance premiums, etc. (up to ₹1,50,000 under Section 80C), medical insurance premiums (Section 80D), House Rent Allowance (HRA), and Interest on Home Loan under Section 24(b).