Income Tax Calculator
Calculate your income tax liability for FY 2023-24 under Old or New Tax Regime
Income Details
Tax Breakdown
Summary
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Est. Results
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How Income Tax is Calculated in India?
Income tax in India is calculated using a progressive tax system with different tax slabs. Tax is calculated on taxable income (gross income minus deductions) using applicable tax rates. A 4% health and education cess is added to the tax amount.
Income Tax Formula/Equation
Tax Slabs (New Regime 2024-25):
- Up to ₹3,00,000: 0%
- ₹3,00,001 - ₹7,00,000: 5%
- ₹7,00,001 - ₹10,00,000: 10%
- ₹10,00,001 - ₹12,00,000: 15%
- ₹12,00,001 - ₹15,00,000: 20%
- Above ₹15,00,000: 30%
Example:
Let's calculate income tax for an annual income of ₹12,00,000 under the new tax regime with standard deduction of ₹75,000.
Given: Gross Income = ₹12,00,000, Standard Deduction = ₹75,000
Step 1: Calculate Taxable Income
Taxable Income = ₹12,00,000 - ₹75,000 = ₹11,25,000
Step 2: Calculate Tax by Slabs
Tax on first ₹3,00,000 = ₹0 (0%)
Tax on ₹3,00,001 - ₹7,00,000 = ₹4,00,000 × 5% = ₹20,000
Tax on ₹7,00,001 - ₹10,00,000 = ₹3,00,000 × 10% = ₹30,000
Tax on ₹10,00,001 - ₹11,25,000 = ₹1,25,000 × 15% = ₹18,750
Total Tax = ₹0 + ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750
Step 3: Calculate Cess (4%)
Cess = ₹68,750 × 4% = ₹2,750
Step 4: Calculate Total Tax Payable
Total Tax = ₹68,750 + ₹2,750 = ₹71,500
Result: Your total income tax is ₹71,500, leaving you with ₹11,28,500 after-tax income.
Use Cases for Income Tax Calculator
Tax Planning
Plan your investments and deductions to minimize tax liability
Salary Negotiation
Calculate take-home salary from gross salary offers
Regime Comparison
Compare old vs new tax regime to choose the best option
Tax Filing
Estimate tax liability before filing income tax returns
Why Use Our Income Tax Calculator?
Calculate tax for both old and new regimes
Account for all standard deductions and exemptions
Detailed tax breakdown by slabs
Visual charts and graphs for better understanding
100% free, no registration required
Updated with latest tax slabs and rules
Income Tax Calculator FAQs
❓How is income tax calculated in India?
Income tax in India is calculated based on taxable income after deductions. Tax is calculated using progressive tax slabs (0%, 5%, 20%, 30%) depending on income level. A 4% health and education cess is added to the tax amount.
❓What is the difference between old and new tax regime?
Old regime allows deductions (HRA, 80C, 80D, etc.) but has higher tax rates. New regime has lower tax rates but no deductions except standard deduction. Choose based on which saves more tax for your situation.
❓What deductions are available under old tax regime?
Common deductions include: Section 80C (up to ₹1.5L for investments), HRA (House Rent Allowance), Section 80D (health insurance), Section 24(b) (home loan interest), and standard deduction of ₹50,000.
❓Is this income tax calculator accurate?
This calculator provides estimates based on standard tax slabs and rules. Actual tax may vary based on specific deductions, exemptions, and tax-saving investments. Always consult a CA or verify with income tax department for exact calculations.
❓Is this calculator free to use?
Yes, this income tax calculator is completely free to use with no registration required.