Income Tax Calculator
Estimate your income tax liability under Old or New tax regime.
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Income Tax Calculator
Use the formula and worked example below to calculate manually.
Overview
The income tax calculator estimates your annual tax liability based on your total income, applicable deductions, and choice of tax regime (Old or New) for the current financial year.
How to use this calculator
- Select the financial year.
- Choose between the Old Tax Regime (with deductions) and the New Tax Regime (lower slabs, fewer deductions).
- Enter your annual gross income from all sources.
- Under the Old Regime, enter deductions (80C, 80D, HRA, LTA, etc.).
- The calculator shows your taxable income, tax slab breakdown, surcharge, cess, and net tax payable.
Understanding the inputs & results
Gross income
Total income from salary, business, capital gains, and other sources before any deductions.
Taxable income
Gross income minus eligible deductions. This is the income on which tax is calculated.
Old Tax Regime
The existing system with higher slabs but allows deductions under 80C, 80D, HRA, etc.
New Tax Regime
A simplified system with lower tax rates but most deductions are not available.
Standard deduction
A flat ₹50,000 deduction from salary income available under both regimes.
Surcharge
An additional tax on high incomes (above ₹50 lakh) over and above the basic tax.
Health & Education Cess
A 4% cess on the total tax and surcharge, paid by all taxpayers.
The formula
Income tax calculation
Tax = Slab-rate applied to Taxable Income + Surcharge + 4% Cess
Tax is calculated progressively: income up to each slab threshold is taxed at the slab rate. Surcharge applies above ₹50 lakh. Cess of 4% applies on total tax including surcharge.
Worked example
Salary ₹10 lakh, deductions ₹1.5 lakh (80C), Old Regime, FY 2024-25.
- Taxable income = 10,00,000 − 50,000 (standard) − 1,50,000 (80C) = ₹8,00,000.
- Tax: 0–2.5L = 0; 2.5–5L = ₹12,500; 5–8L = ₹60,000. Total = ₹72,500.
- Cess = 4% of ₹72,500 = ₹2,900. Net tax = ₹75,400.
✓ Net tax payable ≈ ₹75,400 under the Old Tax Regime.
Frequently asked questions
Tips & things to know
- Maximise Section 80C investments (PPF, ELSS, LIC premium) to save up to ₹46,800 in taxes.
- NPS contribution under 80CCD(1B) gives an extra ₹15,600 in tax savings.
Tax laws change frequently. This calculator uses indicative slabs and may not reflect the latest Budget changes. Consult a chartered accountant or tax professional for accurate filing.