Income Tax Calculator

New regime is better if your total deductions are below ₹3.75 lakh. Old regime is better if you have: 80C (₹1.5L) + 80D (₹25K) + HRA (₹1L+) + home loan interest (₹2L). For most salaried employees earning ₹7–15 lakh with standard deductions, the new regime now saves more tax due to lower slab rates and ₹75K standard deduction.

New Tax Regime: ₹75,000 standard deduction (increased from ₹50,000 in Budget 2024). Old Tax Regime: ₹50,000 standard deduction. The standard deduction is automatic — you don't need to submit any proof. It covers professional expenses like commute, meals, and work-related costs.

Section 87A gives a full tax rebate (zero tax) if your taxable income is below a threshold. New regime: Zero tax if taxable income ≤ ₹7 lakh. Old regime: Zero tax if taxable income ≤ ₹5 lakh. This means a person earning ₹7.75 lakh (₹7L + ₹75K standard deduction) pays zero tax under the new regime.

New Tax Regime slabs (FY 2024-25): Up to ₹3L → 0%, ₹3L–₹7L → 5%, ₹7L–₹10L → 10%, ₹10L–₹12L → 15%, ₹12L–₹15L → 20%, Above ₹15L → 30%. Plus 4% Health and Education Cess on total tax. Plus surcharge for incomes above ₹50 lakh.

Section 80C allows deduction up to ₹1.5 lakh per year under the OLD regime. Qualifying investments/expenses: EPF/VPF contribution, PPF, ELSS mutual funds (tax-saving), NSC, tax-saving FD (5-year), LIC premium, ULIP, home loan principal repayment, children's tuition fees, Sukanya Samriddhi Yojana. Note: 80C deduction is NOT available under the new tax regime.

The new regime offers very few deductions: Standard deduction (₹75,000), NPS employer contribution (Section 80CCD(2)), Agniveer Corpus Fund (Section 80CCH), gratuity, and leave encashment exemptions. All other deductions like 80C, 80D, HRA, LTA, home loan interest are NOT available under the new regime.

Under New Regime (FY 2024-25): Standard deduction ₹75K → Taxable income = ₹9.25L. Tax = ₹0 (up to ₹3L) + ₹20,000 (5% on ₹3L–₹7L) + ₹22,500 (10% on ₹7L–₹9.25L) = ₹42,500. Cess 4% = ₹1,700. Total tax = ₹44,200. Monthly in-hand = (₹10L – ₹44,200) / 12 = ₹79,650.

4% cess is levied on the income tax amount (not on income). It goes towards health and education schemes. It's mandatory and cannot be avoided. Example: If your income tax is ₹50,000, cess = ₹2,000, total tax = ₹52,000.

Surcharge is levied on tax for high-income individuals: Income ₹50L–₹1Cr → 10% surcharge. ₹1Cr–₹2Cr → 15%. ₹2Cr–₹5Cr → 25%. Above ₹5Cr → 37% (old regime) / 25% (new regime, capped at 25%). Surcharge applies on the tax amount, not income. Example: Tax ₹3L + 10% surcharge ₹30K + 4% cess on total.

HRA (House Rent Allowance) is tax-exempt under the OLD regime only, not the new regime. Exempt amount = least of: (a) Actual HRA received, (b) 50% of salary (metro) / 40% (non-metro), (c) Actual rent paid – 10% of salary. You must submit rent receipts and landlord's PAN (if rent > ₹1L/year) to claim HRA exemption.

Individual taxpayers (salaried): 31st July of the assessment year. Example: For FY 2024-25 income, ITR must be filed by 31 July 2025. Businesses requiring audit: 31st October. Belated return (late filing): 31st December (with late fee ₹1,000–₹5,000). Filing ITR is mandatory if income exceeds the basic exemption limit or if you want to claim a refund.