Income Tax Calculator FY 2024-25
Calculate your income tax under India's New & Old Regime. Compare both and find the better option.
New Regime: Standard Deduction of ₹75,000 auto-applied. Most other deductions (80C, 80D, HRA) are not available.
Total Tax Payable
Effective Rate
8.7%
Annual In-Hand
₹13,70,000
Monthly In-Hand
₹1,14,167
Tax Calculation Breakdown
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 - ₹3,00,000 | 0% | ₹0 |
| ₹3,00,000 - ₹7,00,000 | 5% | ₹20,000 |
| ₹7,00,000 - ₹10,00,000 | 10% | ₹30,000 |
| ₹10,00,000 - ₹12,00,000 | 15% | ₹30,000 |
| ₹12,00,000 - ₹15,00,000 | 20% | ₹45,000 |
| Tax Before Rebate | ₹1,25,000 | |
| Health & Education Cess (4%) | ₹5,000 | |
| Total Tax | ₹1,30,000 | |
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Understanding Income Tax in India
India follows a progressive tax system where higher income attracts higher tax rates. Since 2020, taxpayers can choose between two regimes: the New Tax Regime with lower rates but fewer deductions, and the Old Tax Regime with higher rates but extensive deductions under Section 80C, 80D, HRA, and more.
For FY 2024-25 (Assessment Year 2025-26), the New Regime is the default. You must specifically opt out to use the Old Regime. This calculator helps you compute tax under both regimes and compare which one saves you more money.
All calculations include Standard Deduction, Section 87A Rebate, and 4% Health & Education Cess. For salaried individuals, this provides an accurate estimate of your tax liability.
Income Tax Slabs FY 2024-25
| Income Slab | New Regime | Old Regime |
|---|---|---|
| Up to ₹2.5 Lakh | 0% | 0% |
| ₹2.5L - ₹3L | 0% | 5% |
| ₹3L - ₹5L | 5% | 5% |
| ₹5L - ₹7L | 5% | 20% |
| ₹7L - ₹10L | 10% | 20% |
| ₹10L - ₹12L | 15% | 30% |
| ₹12L - ₹15L | 20% | 30% |
| Above ₹15L | 30% | 30% |
+ 4% Health & Education Cess on total tax. Surcharge applies for income >₹50L.
Key Deductions (Old Regime Only)
Section 80C - ₹1.5 Lakh
EPF, PPF, ELSS, Life Insurance, NSC, SSY, 5-year FD, Home Loan Principal, Tuition Fees.
Section 80D - ₹25K-₹1L
Health insurance for self (₹25K), parents (₹25K/₹50K for seniors). Max ₹1L if all are seniors.
HRA Exemption
Lowest of: Actual HRA, 50%/40% of salary, Rent - 10% salary. Requires rent receipts.
80CCD(1B) - NPS ₹50K
Additional ₹50,000 deduction for NPS contributions beyond 80C limit.
Quick Comparison: New vs Old
| Feature | New Regime | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| 80C Deduction | Not Available | ₹1.5 Lakh |
| 80D Health Insurance | Not Available | Up to ₹1 Lakh |
| HRA Exemption | Not Available | Available |
| 87A Rebate Limit | ₹7 Lakh | ₹5 Lakh |
| Best For | Low deductions | High deductions (>₹3.75L) |
Calculator Features
Frequently Asked Questions
What is the New Tax Regime in India?
The New Tax Regime was introduced in Union Budget 2020 and revised in Budget 2023. It offers lower tax rates but eliminates most deductions and exemptions (80C, 80D, HRA, LTA). For FY 2024-25, it includes a ₹75,000 standard deduction and is the default regime. Tax slabs: ₹0-3L (0%), ₹3-7L (5%), ₹7-10L (10%), ₹10-12L (15%), ₹12-15L (20%), Above ₹15L (30%).
What is the Old Tax Regime?
The Old Tax Regime has higher tax rates but allows deductions like 80C (₹1.5L), 80D (health insurance), HRA, LTA, NPS (80CCD), and home loan interest. It's beneficial if your total deductions exceed ₹3.75L approximately. Tax slabs: ₹0-2.5L (0%), ₹2.5-5L (5%), ₹5-10L (20%), Above ₹10L (30%). Standard deduction is ₹50,000.
Which regime is better - New or Old?
It depends on your deductions. Rule of thumb: If your total deductions (80C + 80D + HRA + NPS) are below ₹3.75 lakhs, New Regime is usually better due to lower rates. If deductions exceed this, Old Regime may save more. Our calculator compares both and shows which saves you money.
What is Section 80C and what can I claim?
Section 80C allows deductions up to ₹1.5 lakh per year on investments and expenses including: EPF/VPF contributions, PPF, ELSS mutual funds, Life Insurance premiums, NSC, 5-year FD, SSY (Sukanya Samriddhi), Home loan principal, Tuition fees (2 children max). Available only in Old Regime.
What is Section 80D for health insurance?
Section 80D allows deduction for health insurance premiums: Up to ₹25,000 for self/spouse/children (₹50,000 if senior citizen), additional ₹25,000 for parents (₹50,000 if parents are senior citizens), ₹5,000 for preventive health checkup (within overall limit). Maximum possible: ₹1 lakh. Available only in Old Regime.
What is Section 87A Rebate?
Section 87A provides tax rebate for low-income taxpayers. In New Regime: If taxable income ≤ ₹7 lakh, you get rebate up to ₹25,000 (effectively 0 tax for income up to ₹7L). In Old Regime: If taxable income ≤ ₹5 lakh, rebate up to ₹12,500. The rebate is applied before calculating cess.
What is the 4% Health and Education Cess?
Health and Education Cess is an additional 4% tax calculated on your total income tax (after rebate). Example: If your tax after rebate is ₹100,000, cess = ₹4,000. Total payable = ₹104,000. This cess funds healthcare and education initiatives and applies to both regimes.
What is the Standard Deduction?
Standard Deduction is a flat deduction from salary income without any proof required. For FY 2024-25: New Regime: ₹75,000 (increased from ₹50,000 in Budget 2024), Old Regime: ₹50,000. It was reintroduced in Budget 2018 after being abolished in 2006.
What is HRA Exemption and how is it calculated?
HRA (House Rent Allowance) exemption is available if you receive HRA as part of salary and pay rent. Exemption is the lowest of: (1) Actual HRA received, (2) 50% of salary (metro) or 40% (non-metro), (3) Rent paid minus 10% of salary. Available only in Old Regime. Use an HRA calculator for precise amount.
Is income up to ₹7 lakh really tax-free?
Yes, under New Regime for FY 2024-25, if your net taxable income (after ₹75K standard deduction) is ≤ ₹7 lakh, you pay zero tax due to Section 87A rebate. So gross income of ~₹7.75 lakh becomes effectively tax-free. Above this, marginal slabs apply.