Income Tax Calculator (India – FY 2024-25)

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What is Income Tax?

Income Tax is a tax charged by the Government of India on an individual's annual income. Salaried employees, freelancers, business owners, and professionals are required to pay tax based on the income they earn during a financial year (April to March).

India offers two tax regimes:

• New Tax Regime – Lower tax rates, fewer deductions
• Old Tax Regime – Higher tax rates, more deductions

New Tax Regime Slabs (FY 2024–25)

Deductions Under Income Tax

The Income Tax Calculator considers popular deductions such as:

• Section 80C – Investments like PPF, ELSS, LIC, etc. (Limit: ₹1,50,000)
• Section 80D – Health insurance premium
• Standard deduction (for salaried individuals)

Income Tax Calculation Formula

Example of Income Tax Calculation

• Annual Income: ₹10,00,000
• Deductions (80C + 80D): ₹1,50,000
• Taxable Income: ₹8,50,000

Based on the new tax regime slabs, the calculator shows:

• Total Income Tax payable
• Taxable income
• Net take-home salary
• Tax breakdown by slabs

Benefits of Income Tax Calculator

• ✔ Quick and accurate tax estimation
• ✔ Helps plan investments efficiently
• ✔ Useful for salary structuring
• ✔ Allows better financial planning
• ✔ Auto-updated with latest tax slabs

Frequently Asked Questions (FAQ)

1. Which tax regime should I choose?

Choose the New Tax Regime if you have fewer deductions. Choose the Old Tax Regime if you invest heavily in 80C/80D.

2. Is income tax calculated yearly?

Yes. It is calculated on annual income earned between April and March.

3. What is the standard deduction?

All salaried individuals get a standard deduction of ₹50,000.

4. What if I don’t file taxes?

You may face penalties, interest, or legal consequences depending on the tax due.