Income Tax Calculator – Calculate Your Tax Liability Instantly
Income tax is a direct tax imposed on individuals based on their income. Every taxpayer in India needs to compute their tax liability as per the prescribed income tax slabs. Our Income Tax Calculator helps you estimate your tax based on your salary, deductions, and exemptions.
Use this calculator to plan your taxes efficiently and take advantage of all available deductions.
What is Income Tax?
Income tax is a tax levied by the government on an individual’s or entity’s earnings. The tax is calculated based on income tax slabs that vary according to the income range. There are two tax regimes in India – the Old Tax Regime (which allows deductions) and the New Tax Regime (with lower tax rates but no deductions).
How is Income Tax Calculated?
Income tax is calculated using the following formula:
Taxable Income = Gross Income - Exemptions - Deductions
The final tax liability is computed based on the applicable income tax slab rates.
Individuals can choose between the Old Tax Regime (which allows deductions like Section 80C, 80D, HRA, etc.) or the New Tax Regime (with lower tax rates but fewer deductions).
Income Tax Slabs for FY 2023-24
Below are the latest tax slab rates for individual taxpayers:
New Tax Regime (Default from FY 2023-24)
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹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 (With Deductions)
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Example of Income Tax Calculation
Let's assume an individual has the following details:
- Gross Salary = ₹12,00,000 per year
- Deductions under 80C & 80D = ₹1,50,000
- HRA Exemption = ₹50,000
Taxable Income = ₹12,00,000 - ₹1,50,000 - ₹50,000 = ₹10,00,000
Under the Old Regime, tax calculation would be:
- ₹2,50,000 – ₹5,00,000 @ 5% = ₹12,500
- ₹5,00,001 – ₹10,00,000 @ 20% = ₹1,00,000
Total Tax Payable: ₹1,12,500 (before rebates and cess).
Benefits of Using an Income Tax Calculator
- Quick and accurate tax computation.
- Helps in better tax planning.
- Compares tax liability under old and new regimes.
- Assists in finding maximum tax savings.
Frequently Asked Questions (FAQs)
Conclusion
Use our Income Tax Calculator to efficiently estimate your tax liability and make informed financial decisions. Proper tax planning can help maximize your savings while ensuring compliance with tax laws.