Income Tax Calculator (India)
Calculate income tax under India's new tax regime FY2024-25. See slab-wise breakdown, cess, and effective tax rate.
| Slab | Rate | Taxable | Tax |
|---|---|---|---|
| ₹0 – ₹3,00,000 | 0% | ₹3,00,000 | ₹0 |
| ₹3,00,000 – ₹7,00,000 | 5% | ₹4,00,000 | ₹20,000 |
| ₹7,00,000 – ₹10,00,000 | 10% | ₹3,00,000 | ₹30,000 |
| ₹10,00,000 – ₹12,00,000 | 15% | ₹2,00,000 | ₹30,000 |
| ₹12,00,000 – ₹15,00,000 | 20% | ₹0 | ₹0 |
| ₹15,00,000 – Above | 30% | ₹0 | ₹0 |
What is Income Tax Calculator?
An Indian income tax calculator computes your tax liability under the new tax regime for the current financial year. India's tax system uses progressive slabs — you pay increasing percentages on income above certain thresholds. The new regime (FY2024-25) has slabs at 0%, 5%, 10%, 15%, 20%, and 30%, plus a 4% health and education cess on total tax. Understanding your tax liability helps with financial planning, salary negotiations, and tax-saving investment decisions throughout the year.
How It Works
Enter your gross annual income. The tool applies the current year's tax slabs progressively — the first ₹3,00,000 is tax-free, the next ₹4,00,000 at 5%, and so on up to the highest slab. It then applies the section 87A rebate (no tax if income ≤ ₹7,00,000 under new regime), adds 4% health and education cess, and shows your net tax liability. The breakdown shows tax at each slab level so you can understand exactly how your total is calculated. It also shows the effective tax rate (total tax / gross income).
Common Use Cases
- •Estimating annual tax liability for salary and income planning purposes
- •Comparing take-home salary between different CTC offers during job changes
- •Planning advance tax payments by estimating quarterly installment amounts
- •Understanding the marginal tax rate for evaluating additional income sources
- •Comparing old regime vs new regime tax liability for optimal regime selection
- •Calculating tax savings from deductions and exemptions under applicable sections
Frequently Asked Questions
What is the rebate under section 87A?▼
If taxable income is ₹7,00,000 or less under the new regime, the entire tax liability is waived.
Should I choose the old or the new tax regime?▼
It depends entirely on your deductions. The new regime offers lower slab rates but removes most exemptions, including HRA, LTA and the 80C deductions. If you claim substantial HRA, home loan interest and 80C investments, the old regime often wins; if you claim little, the new one usually does. Calculate both — the choice is yours each year for salaried taxpayers.
What is the section 87A rebate?▼
A rebate that eliminates tax liability entirely for incomes below a threshold, rather than being a deduction from income. Under the new regime the threshold has been raised in recent budgets, meaning many taxpayers below it pay nothing despite technically falling in a taxable slab.
How does the cess work?▼
Health and Education Cess of 4% is charged on the tax amount after any rebate, not on your income. So ₹100,000 of computed tax becomes ₹104,000. Surcharge applies additionally at higher income levels and is calculated before the cess.
How do the slabs actually apply to my income?▼
Progressively, which is widely misunderstood. Moving into a higher slab does not tax your whole income at that rate — only the portion above the threshold is taxed at it. Earning slightly more never reduces your take-home pay.
Does this include capital gains and other income?▼
This calculator models salary and slab-rate income. Capital gains are taxed under separate rules and rates depending on the asset and holding period, and are not simply added to slab income. Consult the specific provisions or a professional for those.
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