TAX Calculator

Income Tax Calculator (India)

Income Tax Calculator

Estimate your tax liability under old regime slabs (India)

Introduction

The Tax Calculator estimates your income tax liability based on your annual income and applicable tax slabs — helping you plan ahead financially.

How to Use

  1. Enter your Annual Income
  2. Enter applicable Deductions (e.g., 80C investments), if any
  3. Select your Tax Regime (Old or New)
  4. Click "Calculate" to see your estimated tax liability and applicable slab

Formula Explanation

Tax is calculated based on progressive slabs — each income bracket is taxed at a different rate, and the total tax is the sum across all applicable brackets.

Worked Example

For an annual income of ₹10,00,000 under the New Tax Regime (after the ₹75,000 standard deduction), taxable income would be ₹9,25,000. Applying the progressive slabs results in an approximate tax liability of ₹45,000–50,000 (before cess) — typically lower than the Old Regime for someone without major deduction claims.

Practical Context

Taxpayers in India can choose between the Old Tax Regime (with deductions/exemptions) and the New Tax Regime (lower rates, fewer deductions). Tax slabs are revised in each budget. Under the New Regime, income up to ₹7 lakh qualifies for a rebate (Section 87A), resulting in effectively zero tax.

Frequently Asked Questions

Q1: Which is better — old or new tax regime?
If you claim significant deductions (80C, HRA, home loan interest), the Old Regime may be beneficial; otherwise, the New Regime is simpler and often better.

Q2: Can I switch tax regimes every year?
Salaried individuals can switch regimes each financial year, but business income earners can typically only switch back once.

Q3: What's the difference between TDS and total income tax?
TDS is deducted in advance as income is earned, while total tax liability is calculated at year-end — TDS is adjusted against this final liability.

Q4: What is Health and Education Cess?
A mandatory 4% cess is added on top of your calculated tax (plus surcharge, if applicable) under both regimes.

Q5: Do I need to file an ITR if my tax liability is zero?
Yes, filing is still recommended (and sometimes mandatory), as it serves as official income proof for loans, visas, and other purposes.