Income Tax Calculator (India)

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Calculate Indian income tax

Income Tax Calculator (India)

Calculate Indian income tax under old and new tax regimes

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Tax Calculation Results

Taxable Income

4,50,000

Income Tax

10,000

Health & Education Cess (4%)

400

Total Tax Payable

10,400

How to Use the Income Tax Calculator (India)

Our Income Tax Calculator for India helps you estimate your tax liability under both the old and new tax regimes. Simply enter your annual income, deductions, and select your preferred tax regime to get instant calculations.

Step-by-Step Guide:

  1. Enter your gross annual income from all sources
  2. Input your eligible deductions (HRA, LTA, standard deduction, etc.)
  3. Choose between Old Tax Regime or New Tax Regime
  4. View your taxable income and total tax liability
  5. Download the calculation results for your records

Features of Our Income Tax Calculator

Dual Tax Regime Support

Calculate tax under both old and new tax regimes to compare and choose the best option

Comprehensive Deductions

Account for all major deductions including HRA, LTA, standard deduction, and more

Real-time Calculations

Get instant tax calculations as you input your income and deduction details

Health & Education Cess

Automatically calculates the 4% Health & Education Cess on your tax liability

Download Results

Save your tax calculation results as a text file for record-keeping

Tax Slab Breakdown

View detailed breakdown of tax calculation across different income slabs

Why Use Our Income Tax Calculator?

Planning your taxes effectively requires accurate calculations and understanding of the tax slabs. Our calculator helps you make informed decisions about your tax planning strategy.

Benefits:

  • Compare old vs new tax regimes
  • Understand tax slab calculations
  • Plan deductions effectively
  • Estimate quarterly tax payments

Use Cases:

  • Salary planning and budgeting
  • Investment tax planning
  • Tax-saving investment decisions
  • Advance tax calculation

Who Should Use This Calculator?

This calculator is designed for individuals and professionals who need to understand their tax obligations and plan their finances accordingly.

Salaried Individuals

Calculate tax on salary income and plan deductions

Business Owners

Estimate tax liability for business income and profits

Freelancers

Plan tax for freelance and professional income

Investors

Understand tax implications of investment income

Tax Consultants

Quick tax calculations for client consultations

Students

Learn about Indian tax system and calculations

Understanding Indian Income Tax System

Tax Regimes in India

India offers two tax regimes: the Old Tax Regime and the New Tax Regime (introduced in Budget 2020). Each regime has different tax slabs and deduction benefits.

Old Tax Regime

  • • Up to ₹2.5 lakh: Nil
  • • ₹2.5 lakh to ₹5 lakh: 5%
  • • ₹5 lakh to ₹10 lakh: 20%
  • • Above ₹10 lakh: 30%
  • • Allows various deductions
  • • Standard deduction: ₹50,000

New Tax Regime

  • • Up to ₹3 lakh: Nil
  • • ₹3 lakh to ₹7 lakh: 5%
  • • ₹7 lakh to ₹10 lakh: 10%
  • • ₹10 lakh to ₹12 lakh: 15%
  • • ₹12 lakh to ₹15 lakh: 20%
  • • Above ₹15 lakh: 30%
  • • Standard deduction: ₹50,000

Common Deductions

  • • House Rent Allowance (HRA)
  • • Leave Travel Allowance (LTA)
  • • Conveyance Allowance
  • • Medical Insurance Premium
  • • Education Loan Interest
  • • Employee's Provident Fund (EPF)
  • • Life Insurance Premium
  • • National Pension Scheme (NPS)
  • • Home Loan Interest
  • • Donations to Charity

Health & Education Cess

In addition to income tax, taxpayers are required to pay a 4% Health & Education Cess on the calculated income tax. This cess is used for funding health and education initiatives in India.

Frequently Asked Questions

What is the difference between old and new tax regimes?

The new tax regime offers lower tax rates for higher income slabs but removes most deductions. The old regime has higher tax rates but allows various deductions like HRA, LTA, home loan interest, etc.

What deductions can I claim under Section 80C?

Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, ELSS, life insurance, home loan principal, children's education, etc. This deduction is available only under the old tax regime.

How is advance tax calculated?

Advance tax is paid quarterly if your tax liability exceeds ₹10,000 in a year. It should be paid by 15th June, 15th September, 15th December, and 31st March.

What is the standard deduction?

Standard deduction is ₹50,000 for both tax regimes. It reduces your taxable income without requiring any actual expenditure or investment proof.

How do I choose between old and new tax regimes?

Compare your tax liability under both regimes after accounting for all deductions you're eligible for. Choose the regime that results in lower tax liability. Most taxpayers with deductions prefer the old regime.

What is the surcharge on income tax?

Surcharge is an additional tax on high-income earners. It applies to income above ₹50 lakh (10%), ₹1 crore (15%), and ₹2 crore (25%) for individuals. Our calculator includes surcharge calculations.

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