Income Tax Calculator FY 2024-25 & FY 2025-26
Calculate your income tax liability under Old and New Tax Regimes for Assessment Years 2025-26 & 2026-27
Tax Summary
Tax Comparison
Key Takeaways
Income Sensitivity Analysis
| Income Scenario | Taxable Income (₹) | Total Tax (₹) | Effective Rate (%) |
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Tax Calculation Breakdown
| Component | Taxable Income (₹) | Tax Rate (%) | Tax Amount (₹) |
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| Component | Taxable Income (₹) | Tax Rate (%) | Tax Amount (₹) |
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| Parameter | New Regime | Old Regime |
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Calculating your income tax can be a complex task, with different regimes, slabs, and deductions to consider. Our Income Tax Calculator is a comprehensive tool designed to simplify this process, helping you accurately estimate your tax liability for the financial year 2024-25 under both the Old and New Tax Regimes.
This guide will walk you through how to use the calculator effectively and explain the core concepts of the Indian tax system, empowering you to make informed decisions and optimise your tax planning.
Author’s Note: This calculator provides an estimate based on the data you enter and current tax laws. It is intended for informational purposes only and should not be considered as legal or financial advice. Tax laws are subject to change. It is always recommended to consult with a qualified chartered accountant or tax professional for personalized advice.
Understanding the Old vs. New Tax Regime
The most significant choice for a taxpayer today is selecting between the Old and New Tax Regimes.
- Old Tax Regime: This regime allows you to claim a wide range of exemptions and deductions, such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and deductions under Section 80C (for investments like PPF, ELSS, Life Insurance), Section 80D (for health insurance premiums), and more. This regime is beneficial for individuals who make significant investments in tax-saving instruments.
- New Tax Regime: This is the default regime. It offers lower, simplified tax slabs but does not allow you to claim most of the common exemptions and deductions available under the Old Regime. It is beneficial for individuals who do not make many tax-saving investments and prefer a more straightforward calculation.
Our calculator helps you compare your tax liability under both regimes side-by-side, allowing you to choose the more beneficial option.
How to Use the Income Tax Calculator
Our calculator is designed to be comprehensive yet easy to use. Follow these steps to get a clear projection of your tax liability:
- Select Your Financial Year & Age: Choose the relevant financial year (e.g., FY 2024-25) and specify your age category (as tax slabs differ for senior citizens under the Old Regime).
- Enter Your Income Details: Input your gross income from salary or business.
- Add Exemptions and Deductions: If you are evaluating the Old Tax Regime, enter your eligible deductions, such as investments under Section 80C, health insurance premiums under Section 80D, and any HRA exemptions.
- Include Other Income: Add any income from other sources, such as short-term capital gains (STCG) or long-term capital gains (LTCG) from stocks or property, as these are taxed at different rates.
- Calculate Your Tax: The tool will automatically compute your net taxable income and show you a detailed breakdown of your tax liability under both the Old and New Regimes.
Why Use an Income Tax Calculator for Tax Planning?
- Informed Regime Selection: The most significant advantage is the ability to make a data-driven decision on whether the Old or New Tax Regime is more beneficial for you, potentially saving you thousands in taxes.
- Accurate Tax Liability Estimation: Get a precise estimate of your tax outgo for the year, which helps in better financial planning and avoiding surprises at the end of the year.
- Optimise Tax Savings: By entering different deduction amounts, you can see how various investments (like PPF, NPS, or health insurance) can reduce your tax liability under the Old Regime.
- Simplifies Complex Calculations: The calculator automatically handles different income sources, tax slabs, surcharges, and cess, simplifying a complex process.
Understanding Your Tax Calculation Results
The calculator will provide a clear summary, including:
- Net Taxable Income: Your gross income minus any eligible deductions.
- Tax Payable: The final tax amount you owe after applying the relevant tax slabs, rebates, and cess.
- Effective Tax Rate: The actual percentage of your income that you pay as tax.
- Regime Comparison: A side-by-side view of your tax liability under the Old vs. New regime, helping you make the best choice.
Frequently Asked Questions (FAQs)
What is the main difference between the Old and New Tax Regimes?
The Old Regime allows you to claim various tax deductions and exemptions (like HRA, 80C, 80D), which can lower your taxable income. The New Regime offers lower tax rates but does not permit most of these deductions. Our calculator can help you determine which is better for your specific financial situation.
Can I switch between the Old and New tax regimes every year?
For salaried individuals, yes. You can choose between the Old and New regimes at the beginning of each financial year. However, for individuals with business income, the option to switch is more restricted.
How are capital gains taxed?
Capital gains are taxed differently from salary income. Short-term capital gains (STCG) on listed equities are typically taxed at 15%, while long-term capital gains (LTCG) above a certain threshold (e.g., ₹1 lakh for equities) are taxed at 10%. Our calculator accounts for these different rates.
What is the tax rebate under Section 87A?
Section 87A provides a tax rebate to individuals with lower taxable income. Under the New Regime, if your taxable income is up to ₹7,00,000, your tax liability becomes zero. Under the Old Regime, a rebate is available for taxable income up to ₹5,00,000.