Income Tax Calculator

An income tax calculator is a sophisticated tool that estimates your total tax liability for a financial year based on your gross income, age, and eligible deductions. It is indispensable for comparing the 'Old' vs. 'New' tax regimes, helping you pinpoint which structure results in a lower tax payout and maximizes your take-home salary.

The Old Tax Regime offers higher slab rates but allows for various exemptions like 80C, 80D, HRA, and Home Loan interest. The New Regime provides significantly lower, simplified tax rates but requires you to forgo most deductions. Our calculator helps you decide by showing exactly how your specific investments influence your final tax bill.

Section 87A provides a full tax rebate if your taxable income stays below a specific limit. In the Old Regime, this limit is currently ₹5 lakh. In the New Regime (from FY 2024-25), this threshold has been increased, making income up to ₹7 lakh—and potentially more when combined with standard deductions—effectively tax-free for millions of Indians.

The Standard Deduction of ₹50,000 is available to all salaried individuals and pensioners to cover employment-related expenses. Originally restricted to the Old Regime, it has now been extended to the New Tax Regime as well. Our calculator automatically applies this deduction to your gross income to accurately reflect your taxable balance.

In the Old Regime, your basic exemption limit increases with age: ₹2.5 lakh for those below 60, ₹3 lakh for Senior Citizens (60-80), and ₹5 lakh for Super Senior Citizens (80+). However, the New Tax Regime uses a unified slab structure that provides the same tax thresholds for everyone, regardless of their age group.

No, most popular exemptions like HRA (House Rent Allowance), Section 80C (PPF, ELSS, Insurance), and Section 24(b) (Home Loan Interest) are currently not allowed under the New Tax Regime. Choosing the New Regime is generally the better option if your total annual deductions are lower than ₹2.5 lakh to ₹3.5 lakh, depending on your income level.