Income Tax Calculator India FY 2024-25
Compare Old vs New tax regime and find which saves you more — instantly.
Enter your annual income, age group, and deductions (80C, HRA, home loan interest) to calculate your exact tax liability under both regimes for FY 2024-25 (AY 2025-26). The calculator includes 4% Health & Education Cess and Section 87A rebate automatically.
Tax Calculator FY 2024-25
Tax Slab Rates FY 2024-25
| Income Range | Rate |
|---|---|
| Up to ₹2.5L | 0% |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
| Income Range | Rate |
|---|---|
| Up to ₹3L | 0% |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
*4% Health & Education Cess added on tax. Standard deduction ₹50,000 applicable in both regimes. New regime is default from FY 2023-24.
What is Income Tax in India?
Income tax is a direct tax levied by the Government of India on the income earned by individuals, Hindu Undivided Families (HUFs), companies, and other entities during a financial year (April to March). It is governed by the Income Tax Act, 1961, and administered by the Central Board of Direct Taxes (CBDT).
India currently operates two parallel tax regimes — the Old Regime (with higher tax slabs but extensive deductions) and the New Regime (with lower slab rates but minimal deductions). From FY 2023-24, the New Regime became the default, though taxpayers can still opt for the Old Regime at the time of filing their ITR.
How to Use This Calculator
- Annual Income: Enter your total gross income before any deductions (salary, freelance income, rental income, etc.).
- Age Group: Select your age — it affects the basic exemption limit under the Old Regime (₹2.5L / ₹3L / ₹5L for below 60 / Senior / Super Senior).
- Section 80C: Enter investments in PPF, ELSS, life insurance, EPF, etc. Maximum deduction is ₹1.5 lakh per year.
- HRA Exemption: If you receive House Rent Allowance and pay rent, enter your eligible HRA exemption amount.
- Home Loan Interest: Enter interest paid on a home loan for self-occupied property. Maximum deduction is ₹2 lakh under Section 24(b).
- The calculator instantly shows tax under both regimes and highlights which saves you more.
How Income Tax is Calculated
The calculation follows these steps:
- Gross Income = Salary + other income sources
- Taxable Income (Old) = Gross Income − Standard Deduction (₹50,000) − 80C − HRA − Section 24(b) − Other deductions
- Taxable Income (New) = Gross Income − Standard Deduction (₹50,000) only
- Tax on Taxable Income = Apply applicable slab rates
- Less: Rebate u/s 87A = Full rebate if taxable income ≤ ₹5L (Old) or ≤ ₹7L (New)
- Add: 4% Health & Education Cess on remaining tax
Old vs New Regime — When to Choose What
| Annual Income | Deductions Needed for Old Regime to Win | Typical Recommendation |
|---|---|---|
| Up to ₹7 lakh | Any amount | New Regime (zero tax via 87A) |
| ₹7L – ₹10L | Above ₹2.5 lakh | Old Regime likely better |
| ₹10L – ₹15L | Above ₹3.75 lakh | Old Regime if HRA + 80C is high |
| Above ₹15 lakh | Above ₹4.25 lakh | Compare carefully; new regime often wins |
| Above ₹50 lakh | Surcharge applies in both | New Regime often better (lower base rates) |
Worked Examples
Example 1: ₹12 lakh salary with full 80C and HRA
Gross Income: ₹12,00,000. Old Regime deductions: ₹50,000 (std) + ₹1,50,000 (80C) + ₹1,20,000 (HRA) = ₹3,20,000. Taxable income = ₹8,80,000. Old tax = ₹1,12,320 (incl. cess). New Regime taxable income = ₹11,50,000. New tax = ₹1,30,000 (incl. cess). Old Regime saves ₹17,680.
Example 2: ₹8 lakh salary, no deductions
Old Regime: Taxable income = ₹7,50,000. Tax = ₹62,400. New Regime: Taxable income = ₹7,50,000. Tax = ₹31,200. New Regime saves ₹31,200.
Example 3: ₹15 lakh with maximum deductions
Old Regime: Total deductions ≈ ₹4 lakh. Taxable income = ₹11 lakh. Tax ≈ ₹2,23,080. New Regime: Taxable income = ₹14.5 lakh. Tax ≈ ₹1,95,000. New Regime saves ₹28,080 even with significant deductions at this income level.
Tax-Saving Tips for FY 2024-25
- Maximize Section 80C (Old Regime): Invest ₹1.5 lakh in PPF, ELSS, NSC, or life insurance premiums to get the full deduction.
- Claim NPS deduction: An additional ₹50,000 deduction under Section 80CCD(1B) for NPS contributions is available over and above the ₹1.5L 80C limit under the old regime.
- Submit Form 12BB early: Declare your investment proofs to your employer before January to avoid excess TDS deduction during the year.
- Choose HUF structure: If you have family income, a Hindu Undivided Family can claim a separate basic exemption, reducing family tax liability.
- Harvest capital losses: Offset capital gains from equity or mutual funds against losses to reduce taxable income.
- Use the new regime if deductions are low: For income above ₹15 lakh with deductions below ₹4.25 lakh, the new regime almost always results in lower tax.
Frequently Asked Questions
New regime is better if your deductions (80C, HRA, home loan, etc.) are below approximately ₹3.75 lakh. Old regime is better if you have significant deductions. Use the calculator above to compare both for your specific income and deductions — the answer varies person to person.
Under the new regime, income up to ₹7 lakh is effectively tax-free due to the rebate under Section 87A. Under the old regime, the basic exemption is ₹2.5 lakh (₹3L for senior citizens aged 60–80, ₹5L for super senior citizens above 80).
The new regime allows very few deductions — standard deduction of ₹50,000 (for salaried and pensioners), employer contribution to NPS under Section 80CCD(2), and a few others. Most popular deductions like 80C, HRA, Section 24(b) home loan interest, and 80D (medical insurance) are not available in the new regime.
A standard deduction of ₹50,000 is available to all salaried individuals and pensioners under both the old and new tax regime for FY 2024-25. This is applied automatically by this calculator before computing taxable income.
The new regime is the default regime from FY 2023-24 onwards, but it is not mandatory. Salaried individuals can switch between old and new regime every year by informing their employer via Form 12BB before the start of the financial year, or by selecting the preferred regime when filing their ITR.
Under Section 87A, if your net taxable income is up to ₹5 lakh (old regime) or ₹7 lakh (new regime), you get a full rebate on tax payable — meaning your effective tax is zero. The rebate is capped at ₹12,500 (old regime) and ₹25,000 (new regime). This calculator applies this rebate automatically.
A 4% Health and Education Cess is levied on the total income tax (before cess) under both old and new regimes. For example, if your tax before cess is ₹1,00,000, the cess is ₹4,000 and total tax payable is ₹1,04,000. This cess is included in all figures shown by this calculator.