The Income Tax Calculator is a simple-to-use tool that is designed for all registered as well as unregistered e-filing users. It enables the users to calculate taxes according to the provisions of the Income Tax Act, Income-tax rules, and relevant notifications. Updated in line with the income tax changes proposed in the Union Budget for the 2024-2025 fiscal year, this online tool assists in estimating taxes accurately based on current income guidelines.
How to use the Income tax calculator - Step-by-step guide
Select Financial Year: Choose the financial year for which you want your taxes to be calculated.
Select Age Group: Select your age group. This is because tax liability as per the government rules is based on the age of the income taxpayer.
Proceed to Next Step: Click on 'Go to Next Step'.
Enter Taxable Salary (Old Tax Slabs): Enter your taxable salary after deducting exemptions such as HRA, LTA, etc.
Enter Gross Salary (New Tax Slabs): Enter your salary without deducting exemptions such as HRA, LTA, professional tax, etc.
Provide Additional Income Details: Enter details such as interest income, rental income, interest paid on a home loan for rented property, and interest paid on a loan for self-occupied property.
Income from Digital Assets: For income from digital assets, enter the net income (sale consideration minus the cost of acquisition). This income is taxed at 30% plus applicable surcharge and cess.
Proceed to Next Step Again: Click on 'Go to Next Step' again.
Tax Saving Investments (Old Tax Slabs): If you want to calculate your taxes under the old tax slabs, enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA.
Calculate Tax Liability: Click on 'Calculate' to get your tax liability. You will also see a comparison of your pre-budget and post-budget tax liability under both the old and new tax slabs.
Non-Applicable Fields: Enter "0" for any fields that do not apply to you.
Income Tax Calculator: FAQs
1. How is my income tax calculated?
Income tax in India is calculated based on the total taxable income after accounting for various deductions and exemptions. The calculation involves:
Determining total income including all sources such as salary, rental income, and interest from savings.
Applying deductions under sections like 80C, 80D, etc., which are subtracted from the total income to arrive at the taxable income.
The taxable income is then taxed according to the applicable tax slabs, which differ for the old and new regimes.
2. How much tax do I pay on Rs 7.5 lakhs?
In the new tax regime for the financial year 2023-24, individuals with an income that does not exceed ₹7.5 lakhs will be exempt from paying any taxes if they choose the new tax regime. However, if your total taxable income is above Rs 7.5 lakh, you will have to pay income tax.
3. How is the income tax calculated in the new regime?
In the new tax regime, taxpayers have the option to give up certain exemptions and deductions in exchange for lower tax rates.
Below is a table comparing the income tax slabs of the new and old tax regimes.
| Income Slab | Old Tax Regime | New Tax Regime |
|---|---|---|
| ₹0 - ₹2,50,000 | - | - |
| ₹2,50,000 - ₹3,00,000 | 5% | - |
| ₹3,00,000 - ₹5,00,000 | 5% | 5% |
| ₹5,00,000 - ₹6,00,000 | 20% | 5% |
| ₹6,00,000 - ₹7,50,000 | 20% | 10% |
| ₹7,50,000 - ₹9,00,000 | 20% | 10% |
| ₹9,00,000 - ₹10,00,000 | 20% | 15% |
| ₹10,00,000 - ₹12,00,000 | 30% | 15% |
| ₹12,00,000 - ₹12,50,000 | 30% | 20% |
| ₹12,50,000 - ₹15,00,000 | 30% | 20% |
| >₹15,00,000 | 30% | 30% |
4. How much of my income is tax-free?
Under the new tax regime, individuals can earn up to ₹3 lakhs tax-free. For those opting for the old regime, the basic exemption limit is ₹2.5 lakhs for individuals below 60 years, ₹3 lakhs for senior citizens (60–80 years), and ₹5 lakhs for super senior citizens (above 80 years).
5. How much of a salary is taxable?
The entire salary is considered taxable income, but various components may be exempt from tax, such as house rent allowance (HRA), leave travel allowance (LTA), and certain reimbursem*nts. The taxable portion is calculated after considering these exemptions.
6. What is the minimum salary to pay income tax in India?
The minimum salary to pay income tax in India is ₹2.5 lakhs for individuals below 60 years under the old tax regime. Under the new tax regime, the minimum taxable income is ₹3 lakhs.
7. What is TDS's salary?
TDS (Tax Deducted at Source) on salary is the amount deducted by the employer from an employee's salary before it is paid out. The employer deducts TDS based on the estimated income tax liability of the employee.
8. How do I calculate tax on a salary?
To calculate tax on a salary, follow these steps:
Determine Gross Salary: Include all components like basic salary, HRA, bonuses, etc.
Subtract Exemptions: Deduct exemptions such as HRA, LTA, etc.
Apply Deductions: Deduct eligible amounts under sections like 80C, 80D, etc.
Calculate Taxable Income: This is the income after exemptions and deductions.
Apply Tax Slabs: Use the applicable tax slabs to calculate the tax owed.
9. Is TDS refundable?
Yes, TDS is refundable if the total tax deducted exceeds the actual tax liability. Taxpayers can claim a refund by filing their income tax returns.
10. What is HRA in salary?
HRA (House Rent Allowance) is a component of the salary provided to employees to cover housing expenses. A portion of HRA may be exempt from tax based on certain conditions.
11. Is PF taxable?
Provident Fund (PF) contributions are generally not taxable at the time of contribution. However, the interest earned on PF and the amount withdrawn may be taxable under certain conditions.
12. How much rent is tax-free?
Under Section 10(13A), the exempt portion of HRA is calculated based on the least of the following:
The actual HRA received
Rent paid minus 10% of salary
50% of salary (for metro cities) or 40% (for non-metro cities)
13. What is DA in salary?
DA (Dearness Allowance) is a cost of living adjustment allowance paid to employees to offset the impact of inflation. It is a part of the salary and is taxable.
14. How do I use the income tax calculator for FY 2024–25 (AY 2025-26)?
To use the income tax calculator:
Select the financial year.
Enter your age and income details.
Input any exemptions and deductions.
Click on "Calculate" to see your estimated tax liability.
15. Does everyone have to file their income tax returns?
Not everyone is required to file income tax returns. Individuals with income below the taxable limit or those exempt under certain categories may not need to file. However, filing is mandatory for those whose income exceeds the basic exemption limit.
16. What are the details you need when you're e-filing your income tax returns?
When e-filing income tax returns, you typically need:
Personal details (name, PAN, address)
Income details (salary, other income sources)
Deductions and exemptions claimed
Bank account details for refunds
Form 16 from your employer
