Income Tax Calculator India

The answer depends on your total deductions. If your combined deductions under the old regime (80C + 80D + HRA + home loan interest + standard deduction + others) exceed approximately Rs 3-4 lakh, the old regime may save you more tax. For income above Rs 15 lakh with minimal deductions, the new regime is generally advantageous. Our calculator shows both results side by side so you can see exactly which regime saves you more. Many salaried employees with HRA, 80C investments, and standard deduction find the old regime beneficial up to Rs 15-20 lakh income levels. Above that, the new regime's lower slabs often win out.

Section 87A provides a tax rebate that reduces your tax liability to zero up to a certain income threshold. Under the old regime, if your total taxable income is Rs 5 lakh or below, you get a rebate of up to Rs 12,500, making your tax nil. Under the new regime, this threshold is Rs 7 lakh with a rebate of up to Rs 25,000. This means under the new regime, if your taxable income after standard deduction is Rs 7 lakh or less, you pay zero income tax. This rebate is available to resident individuals only and is applied before adding the health and education cess.

Surcharge is an additional tax on the tax amount (not on income) for high-income earners. For FY 2024-25: 10% surcharge applies when total income exceeds Rs 50 lakh but is up to Rs 1 crore, 15% for income above Rs 1 crore up to Rs 2 crore, 25% for income above Rs 2 crore up to Rs 5 crore, and 30% for income above Rs 5 crore. The surcharge is calculated on the income tax amount before cess. For example, if your tax is Rs 12 lakh and your income is Rs 75 lakh, a 10% surcharge adds Rs 1.2 lakh, making your tax Rs 13.2 lakh before the 4% cess. Marginal relief is available to ensure the additional tax doesn't exceed the amount by which income crosses the threshold.

The new tax regime (effective FY 2023-24) is now the default option and offers fewer deductions than the old regime. Available deductions include: standard deduction of Rs 75,000 (for salaried and pensioners), employer's contribution to NPS under Section 80CCD(2) up to 14% of basic salary, and the Agniveer Corpus Fund contribution. Most other popular deductions — Section 80C, 80D, HRA, LTA, home loan interest — are NOT available under the new regime. This is why the new regime has lower tax slabs to compensate for the loss of deductions. If you have significant investments and deductions, the old regime may still be more beneficial.

TDS (Tax Deducted at Source) is a mechanism of collecting income tax in advance — your employer deducts tax from your salary each month and deposits it with the government on your behalf. Banks also TDS on interest income above certain thresholds. TDS is not a separate tax; it's an advance payment against your total income tax liability. When you file your income tax return, you calculate your total tax liability and subtract the TDS already deposited. If TDS exceeds your liability, you get a refund. If it's less, you pay the balance as self-assessment tax. Our calculator shows your total tax liability, which you can compare against your Form 26AS to verify TDS credits.

The due date for filing income tax returns for individuals (requiring audit) is typically July 31st following the end of the financial year (April 1 - March 31). For taxpayers who require a tax audit, the deadline is October 31st. For transfer pricing cases, it's November 30th. Filing on time helps you avoid late fees (up to Rs 5,000 under Section 234F), interest on unpaid tax, and ensures you can carry forward certain losses. Even if your income is below the taxable threshold, filing a return is advisable as it serves as income proof for loan applications, visa processing, and can help you claim refunds for any excess TDS deducted.