Income Tax Calculator
Calculate your income tax liability for FY 2023-24. Compare New and Old tax regimes to find the best option for you.
Your Income Details
Your gross annual income before deductions.
New regime: Lower rates, fewer deductions (Standard deduction of ₹50,000 for salaried)
Total Tax Payable
₹0
Tax Summary
Annual Income
₹10,00,000
Base Tax
₹0
Cess (4%)
₹0
Total Tax Payable
₹0
Effective Tax Rate
0.00%
Take Home
₹10,00,000
Tax Bracket Breakdown - New Regime
About This Calculator
What is Income Tax?
Income tax is a tax levied by the Government of India on the income earned by individuals and businesses. The tax is calculated based on progressive tax slabs, where higher income brackets are taxed at higher rates.
India offers two tax regimes: the New Tax Regime (introduced in 2020) and the Old Tax Regime. Each has different tax slabs and deduction benefits, allowing taxpayers to choose the regime that suits them best.
Key Points:
- Progressive tax system with multiple tax brackets
- Health and Education Cess: 4% on total tax
- New regime offers lower rates but fewer deductions
- Old regime allows more deductions but higher rates
Formula & Calculation Method
Income Tax Calculation Formula
Tax Calculation Steps:
- Determine taxable income after deductions
- Apply tax rates based on income brackets
- Calculate tax for each applicable bracket
- Add Health and Education Cess (4%)
- Total Tax = Base Tax + Cess
New Tax Regime (FY 2023-24):
- ₹0 - ₹3,00,000: 0%
- ₹3,00,001 - ₹6,00,000: 5%
- ₹6,00,001 - ₹9,00,000: 10%
- ₹9,00,001 - ₹12,00,000: 15%
- ₹12,00,001 - ₹15,00,000: 20%
- Above ₹15,00,000: 30%
Old Tax Regime (FY 2023-24):
- ₹0 - ₹2,50,000: 0%
- ₹2,50,001 - ₹5,00,000: 5%
- ₹5,00,001 - ₹10,00,000: 20%
- Above ₹10,00,000: 30%
Example Calculation (New Regime):
Annual Income: ₹10,00,000
Tax on ₹3,00,000 - ₹6,00,000: ₹15,000 (5%)
Tax on ₹6,00,000 - ₹9,00,000: ₹30,000 (10%)
Tax on ₹9,00,000 - ₹10,00,000: ₹15,000 (15%)
Base Tax: ₹60,000
Cess (4%): ₹2,400
Total Tax: ₹62,400
How to Use This Calculator
How to Use the Income Tax Calculator
- Enter Annual Income: Input your total annual income for the financial year. This is your gross income before deductions.
- Select Tax Regime: Choose between the New Tax Regime (simplified, lower rates, fewer deductions) or Old Tax Regime (more deductions available, higher rates).
- View Results: The calculator automatically displays your total tax liability, including base tax and cess, along with your effective tax rate.
- Analyze Tax Breakdown: Review the tax bracket visualization to understand how much tax you pay in each income bracket.
- Compare Regimes: Switch between regimes to see which one results in lower tax liability for your income level.
💡 Pro Tip:
The New Tax Regime may be beneficial for those with fewer deductions, while the Old Regime works better if you have significant investments, insurance, and other deductions. Use this calculator to compare both options before filing your taxes.
Frequently Asked Questions
What is the difference between New and Old Tax Regime?
The New Tax Regime offers lower tax rates but fewer deductions (no HRA, no 80C deductions, etc.). The Old Tax Regime has higher rates but allows deductions under various sections like 80C, 80D, HRA, etc. Taxpayers can choose the regime that results in lower tax liability.
What is Health and Education Cess?
Health and Education Cess is an additional tax of 4% levied on the income tax amount. It was introduced to fund health and education initiatives. The cess is calculated on the base tax amount (not on income).
What is effective tax rate?
Effective tax rate is the average tax rate you pay on your total income. It's calculated as (Total Tax / Annual Income) × 100%. It's different from the marginal tax rate (the rate on your highest income bracket).
Are there any deductions in the New Tax Regime?
The New Tax Regime offers a standard deduction of ₹50,000 for salaried individuals and pensioners. However, it doesn't allow most other deductions like 80C, 80D, HRA (except standard deduction), etc. that are available in the Old Regime.
Can I switch between tax regimes every year?
Yes, taxpayers can choose a different regime each financial year. However, some restrictions apply - salaried employees need to inform their employer at the start of the year, and for certain deductions, you may need to stick with the Old Regime.
Does this calculator include all deductions?
This calculator provides a basic estimate based on tax slabs. For accurate calculations, you should consider all applicable deductions under sections 80C, 80D, 80G, HRA, etc., which are typically more beneficial in the Old Regime. Consult a tax advisor for precise calculations.
Expert Reviewed
This calculator was reviewed by NumCalculators Editorial Team, Multi-disciplinary Expert Team