Income Tax Calculator

About the Income Tax Calculator

Income tax in India is charged on your total annual income across salary, business, house property, capital gains and other sources, after allowable deductions. Since a major reform, taxpayers can choose between two systems: the old regime, which offers many exemptions and deductions with higher slab rates, and the new regime, which has lower slab rates but removes most deductions. Choosing the right one can meaningfully change how much tax you pay.

This calculator helps you estimate your liability under both regimes so you can compare them side by side. The old regime rewards those who invest in tax-saving instruments and claim deductions such as Section 80C, HRA, home loan interest and health insurance. The new regime suits those with few deductions who prefer simplicity and lower headline rates. Your best choice depends on how many deductions you can realistically claim.

Tax is calculated slab by slab, meaning each portion of your income is taxed at the rate for that band, not the whole income at the top rate. A health and education cess is added on top, and a rebate makes income up to a threshold effectively tax-free. Because rules and slabs change with each Union Budget, use this tool as a planning guide and confirm the latest rates and limits before filing your return.

How to use it

• Compare both regimes each year, since the better choice depends on your deductions.
• The old regime favours those who claim 80C, HRA, home loan interest and other deductions.
• The new regime offers lower slab rates but removes most exemptions and deductions.
• Tax is applied slab by slab, plus a health and education cess, with a rebate up to a threshold.