Income Tax Calculator India
Compare Old vs New Tax Regime liabilities in India under the latest Union Budget slabs. Find your optimal regime with rules, rebates, deductions, and worked examples.
Deductions (Old Regime Only)
Analytical Logic
Understanding India's Income Tax System
India operates a progressive income tax system where higher income is taxed at higher rates through a slab structure. Since the Union Budget 2020, taxpayers can choose between two parallel systems: the Old Tax Regime (which allows various deductions and exemptions) and the New Tax Regime (which offers lower base rates but eliminates most deductions). Choosing the right regime can save you tens of thousands of rupees annually, making this comparison tool essential for every salaried individual and self-employed professional in India.
New Regime Tax Slabs (FY 2024-25)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹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% |
Old Regime Tax Slabs (FY 2024-25)
| Income Slab | 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% |
Worked Example: ₹12 LPA Salary
Consider a salaried individual earning ₹12,00,000 gross annual salary with the following deductions under the Old Regime:
- Old Regime: Standard Deduction ₹50,000 + 80C (PPF/ELSS) ₹1,50,000 + 80D (Health Insurance) ₹25,000 + HRA ₹1,80,000. Taxable income = ₹7,95,000. Tax = ₹57,500 + 4% cess = ₹59,800
- New Regime: Standard Deduction ₹75,000. Taxable income = ₹11,25,000. Tax = ₹20,000 + ₹30,000 + ₹18,750 = ₹68,750 + 4% cess = ₹71,500
- Result: With ₹4,05,000 in deductions, the Old Regime saves approximately ₹11,700 per year. Without sufficient deductions, the New Regime would be cheaper.
Key Deductions Under the Old Regime
- Section 80C (₹1.5L): PPF, ELSS, EPF, NSC, life insurance, tuition fees, home loan principal.
- Section 80D (₹25K-₹1L): Health insurance premiums for self, spouse, children, and parents.
- Section 24(b) (₹2L): Interest on home loan for self-occupied property.
- HRA Exemption: Calculated based on actual HRA received, rent paid, and city of residence (metro vs non-metro).
FAQ
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The calculations, amortization schedules, and financial estimates provided by this tool are strictly for informational and educational purposes. They do not constitute formal investment, tax, legal, or accounting advice. Mortgage rates, loan terms, and tax brackets change frequently; always consult a certified financial planner (CFP), CPA, or licensed lending officer before making major financial commitments.