Selected Financial Year :
Income Tax Calculator: FY 2024-2025
Tired and confused about how much tax you have to pay? Fret no more!
Our income tax calculator tool is as easy to use as it gets. It will help you estimate your taxes for the new financial year. Whether you're more comfortable with the traditional deductions of the old tax regime or want to explore the simplified tax rates of the new tax regime, our tool is designed to guide you through both options.
Tax Calculator (F.Y.2022-2023)
Tell us about yourself
Name
Status*
Date of birth*
Email Id
Tax Calculator (FY: 2023-2024)
1. Salary Income from all the Employer
(after all exemption/before Standard deduction)
2. House Property - From all the HP's
(enter Net income as -ve/+ve)
3. Business Income from all the business
- other than Presumptive Income
- Presumptive Income
4. Capital Gain
- LTCG 10% (112A)
- LTCG 20%
- STCG 15% (111A)
- STCG Others
5. Other Income
(including interest and others)
Brought forward losses
- House property
- Business Ordinary
- Business Speculation
- Long term capital gain
- Short term capital gain
Deduction under chapter VI-A
As per old regime
- 80C
- 80D
- 80E
Deduction under chapter VI-A
As per new regime
- 80CCD2
Please fill all the mandatory filed to Calculate
Understanding Your Taxable Income
Taxable income includes all the money you make that the government can tax.
This means not just the money you earn from jobs (like your salary), but also what you make from owning a house or apartment that you rent out (house property), money you gain from selling things for more than you bought them (capital gains), and cash from other sources.
Understanding with an Example
Let's suppose Mr. Kumar, earning ₹60,000 monthly, uses an income tax calculator to assess his FY 2023-24 tax liability. By inputting his income and deductions, he determines his tax obligations, ensuring financial planning and tax compliance.
Calculation:
- Annual Salary: ₹7,20,000 (₹60,000 x 12)
- Standard Deduction: ₹50,000
- Other Deductions: ₹1,50,000
- Total Taxable Income: ₹7,20,000 - ₹50,000 - ₹1,50,000 = ₹5,20,000
On calculating income tax using the income tax calculator, Mr. Kumar can determine a payable amount.
Total Taxable Income | Tax Slab | Deductions | Exemptions | Income Tax Payable |
|---|---|---|---|---|
₹5,20,000 | ₹2,50,001 - ₹5,00,000: 5% | ₹2,00,000 | ₹60,000 | ₹7,500 |
Mr. Kumar reviews the calculated tax liability to optimize his tax-saving investments and financial planning, ensuring compliance and efficient management of his finances.
How to use the Income Tax Calculator for FY 2024-25?
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Choose the financial year for tax calculation.
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Select your age group for accurate tax liability.
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Click "Go to Next Step."
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Enter taxable salary after deductions (old tax slabs) or total salary without deductions (new tax slabs).
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Include other income like interest, rent, and digital assets.
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Proceed to the next step.
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For old tax slabs, input tax-saving investments (Section 80C, 80D, etc.).
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Click "Calculate" for tax liability and see pre-post budget comparison.
Components of Taxable Income
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Salary: This is the income earned from employment.
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Income from House Property: This is the rental income one earns from owned property.
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Income from Business or Profession: Any profit or gain coming from business is taxable here.
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Capital Gains: If one sells a capital asset, this is termed as capital gain.
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Income from Other Sources: This includes income from interest on savings accounts, fixed deposits, dividends, winnings from lotteries, gifts received, etc.
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Income from Investments: Includes interest on bonds, dividends from shares, rental income from real estate, etc.
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Foreign Income: Income earned by Indian residents from sources outside India may also be taxable in India, subject to certain conditions and exemptions.
Old vs. New Tax Regime
Both regimes come with their own set of advantages and disadvantages. Here are the differences between the two:
Old Tax Regime:
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Under the old regime, taxpayers can claim various deductions and exemptions allowed under the Income Tax Act. These deductions include but are not limited to:
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Standard deduction on salary income.
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Deductions under Section 80C (Investments in Provident Fund, ELSS, PPF, etc.).
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Deductions under Section 80D (Medical insurance premium).
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Deductions under Section 24 (Interest on home loan).
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Deductions under Section 80TTA (Interest on savings account).
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Tax slabs under the old regime remain higher, with more tax rates for higher income brackets.
New Tax Regime:
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The new tax regime offers lower tax rates but fewer deductions and exemptions.
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Taxpayers cannot claim most deductions and exemptions available under the old regime.
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The new regime offers a flat tax rate structure with no deductions allowed, except for certain specified exemptions.
Key Differences:
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The old tax regime offers more deductions and exemptions, which can significantly reduce the taxable income, resulting in lower tax liability.
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The new tax regime offers lower tax rates but limits deductions and exemptions, which may be beneficial for taxpayers who don't have many deductions or prefer simplicity.
Sr No | Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|---|
1 | Up to Rs.2.5 lakh | Exempt | Exempt |
2 | Over Rs.2.5 lakh to Rs.3 lakh | Exempt | 5% |
3 | Over Rs.3 lakh to Rs. 5 lakh | 5% | 5% |
4 | Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
5 | Over Rs.6 lakh to Rs. 9 lakh | 10% | 20% |
6 | Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
7 | Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
8 | Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
9 | Above Rs.15 lakh | 30% | 30% |
How to Download Form 16 from TRACES?
2
Provide details such as:
Financial year, age, and whether you're salaried or not.
3
Enter your financial details and click on "'CALCULATE."
4
The calculator will compute your income tax based on the details you specify.
1
Access the Calculator:
Navigate to https://www.taxbuddy.com/ > Resources > Calculators > Select Income Tax Calculator.
Maximizing Your Tax Savings
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To make the most out of your tax savings, focusing on wise investments and deductions can be a game-changer.
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With the right tax-saving tips, you can significantly reduce the amount of tax you have to pay.
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By carefully choosing your investments and making the most of various deductions allowed by the tax laws, you can keep more money in your pocket.
Investment Options for Tax Saving
When it comes to reducing your taxable income, not all investments are created equal. Some can be powerful allies in your quest for tax savings. Let's explore a few options:
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Public Provident Fund (PPF): The PPF is like a savings account on steroids when it comes to tax savings.
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Equity-Linked Savings Scheme (ELSS): It is a mutual fund that comes with a tax-saving cape.
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National Pension System (NPS): NPS is like a savings plan for your older self. You contribute to it throughout your working life, and it helps you save on taxes today.
These are just a few of the options available for tax-saving investments.
Frequently asked questions
Q
How do I choose between the old and new tax regimes?
A
Deciding between the old and new tax regimes depends on your income, deductions, and exemptions. Compare both regimes using an income tax calculator to see which one offers lower tax liability.
Q
What are the major deductions available under the Income Tax Act?
A
Major deductions include investments under Section 80C, health insurance premiums under Section 80D, and interest on home loans under Section 24.
Q
Can I use the income tax calculator for both salaried and self-employed individuals?
A
Yes, an income tax calculator can be used by both salaried and self-employed individuals to estimate their taxes.
Q
How can I reduce my taxable income legally?
A
You can reduce your taxable income legally by investing in tax-saving instruments, claiming deductions for education loans, and utilizing exemptions like HRA.
Q
What is the deadline for filing income tax returns?
A
The deadline for filing income tax returns is usually July 31st of the assessment year unless extended by the government.
Q
How does the income tax calculator determine my tax liability?
A
An income tax calculator estimates your tax liability by considering your income, deductions, exemptions, and the applicable tax regime.
Q
Are there any tax benefits for senior citizens?
A
Yes, senior citizens enjoy higher exemption limits and are exempted from paying advance tax under certain conditions.
Q
Can I claim a deduction for home loan interest?
A
Yes, you can claim a deduction for home loan interest under Section 24 of the Income Tax Act up to a certain limit.
Q
What should I do if I've paid more tax than I owe?
A
If you've paid more tax than you owe, you can file for a refund while submitting your income tax return.
Q
How often are tax slab rates updated?
A
Tax slab rates are reviewed and can be updated annually during the budget presentation by the government.
Q
How to calculate Tax deductions under the new tax regime?
A
Under the new regime, income tax is calculated using above-prescribed tax rates or our Income Tax Calculator.
Q
Do Taxpayers have the authority to switch between both regimes every year?
A
Yes, every individual who is earning gets a choice every year to choose between the regimes. Taxpayers have the right to choose between schemes every year and if one regime is selected in a particular year then there is no compulsion to choose the same next year.
Q
Do I have a choice of tax regime after filing a tax return?
A
No, after filing your Tax return you cannot revise your choice for that particular financial year. You will only get the choice before Filing Tax return or in the next year.
Q
How do deductions and exemptions differ between the old and new tax regimes?
A
Under the old Tax Regime, deductions for expenses like investments, Insurance Premiums, Home Loan Interest while New Tax regime includes standard deduction, LTCG from specified securities and other allowances.
Q
What are the key differences between the old and new tax regimes?
A
The main differences are:
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The new regime has lower tax rates, but fewer deductions and exemptions.
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The old regime has higher tax rates, but more deductions and exemptions.
Q
Can I switch between the old and new tax regimes every year?
A
No, you cannot switch between the old and new tax regimes every year. Once you choose a regime, you have to stick with it until you decide to change it.
Q
Are there any restrictions on opting for the new tax regime?
A
There are no major restrictions on opting for the new tax regime, but you cannot claim certain deductions and exemptions if you choose the new regime. The new regime is simpler, with fewer deductions, but may result in higher taxes for those with significant investments and deductions.