What is the Income Tax (India)?
An Indian Income Tax calculator estimates your annual tax liability under both the Old and New regimes so you can pick the cheaper one. It applies the latest FY 2024-25 slabs, standard deduction and surcharge rules.
Remember that the new regime is the default from FY 2023-24; the old regime is still available but you must opt in.
Formula
- Slab amount — Income that falls within each tax slab
- Cess — Health & Education Cess at 4% on tax + surcharge
- Rebate u/s 87A — Up to ₹25,000 (new regime) for income up to ₹7L
Step-by-step example
Setup: Annual salary ₹12,00,000 under the new regime (FY 2024-25).
- Standard deduction: ₹75,000 → taxable ₹11,25,000
- 0–3L: nil · 3–7L: 5% = ₹20,000 · 7–10L: 10% = ₹30,000 · 10–11.25L: 15% = ₹18,750
- Tax before cess = ₹68,750 · Cess (4%) = ₹2,750
Answer: Total tax ≈ ₹71,500
Frequently asked questions
Old or new regime — which is better?
New regime usually wins if your deductions (80C + HRA + home-loan interest) are less than ~₹3.75 lakh. Use the calculator to compare both for your exact numbers.
Is HRA exemption available in the new regime?
No. The new regime removes most exemptions and deductions in exchange for lower slab rates.
Is this calculator official?
It's a planning aid using publicly notified slabs. Always cross-check with the official Income Tax e-filing portal at filing time.