Which tax regime should I choose?

It depends on your income and the deductions you are eligible for. If you have significant investments and expenses that qualify for deductions (like HRA, 80C, home loan interest), the Old Regime might be better. If you have fewer deductions, the lower tax rates of the New Regime might be more beneficial. Our calculator is the best way to compare.

Is Standard Deduction available in the New Tax Regime?

Yes, for the Financial Year 2023-24 onwards, a Standard Deduction of ₹50,000 is available for salaried individuals and pensioners under the New Tax Regime as well.

What is the Assessment Year (AY) and Financial Year (FY)?

The Financial Year (FY) is the year in which you earn your income (e.g., April 1, 2023, to March 31, 2024, is FY 2023-24). The Assessment Year (AY) is the year immediately following the FY, in which you file your returns and your income is 'assessed' (e.g., AY 2024-25 for FY 2023-24).

Does this calculator include surcharge?

Our final calculator will account for surcharge, which is an additional tax levied on the tax payable for individuals with very high income (typically above ₹50 lakh).

Can I use this calculator for capital gains tax?

This tool is primarily designed as a salary tax calculator. It does not handle the complexities of capital gains tax (like long term capital gain tax rate), business income, or other sources of income which have different rules.

Income Tax Calculator

Welcome to the Income Tax Calculator for India on Toolchesthub. This free online income tax calculator is designed to help you estimate your tax liability for the Financial Year (FY) 2023-24 (Assessment Year 2024-25). Understanding your tax obligations is a critical part of financial planning, and our tool makes it simple.

Whether you are a salaried individual, a freelancer, or a professional, you can use this tax calculator for salaried person to calculate salary tax, compare the Old and New tax regimes, and determine 'how much tax I have to pay'. Make informed financial decisions with our easy-to-use online tax calculator tool.

Income Tax Calculator (India, FY 2023-24)

Estimate your tax liability by comparing the Old and New tax regimes.

Gross Annual Income

Your Age

Below 60

60 to 80

Above 80

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What is Income Tax Calculator?

What is an Income Tax Calculator?

An income tax calculator is a utility that estimates an individual's tax liability based on their income, deductions, and the applicable tax laws for a specific financial year. Our tool functions as a taxable income calculator by first determining your net taxable income after deductions and then applying the relevant tax slabs to calculate the final tax payable, including cess and any applicable surcharges.

For FY 2023-24, Indian taxpayers have the option to choose between two tax regimes: the Old Regime (with various deductions) and the New Regime (with lower tax rates but fewer deductions). Our calculator helps you compare both.

Why is it Important?

Why is an Income Tax Calculator Important?

An income tax calculator is very important as:

Financial Planning: It helps you understand your take-home pay (in-hand salary) after tax, which is crucial for budgeting and saving.
Tax-Saving Investments: By seeing the impact of deductions in the Old Regime, you can make informed decisions about tax-saving investments (like those under Section 80C).
Regime Comparison: The most significant advantage is comparing the Old vs. New tax regimes to see which is more beneficial for your specific financial situation.
Avoiding Surprises: Estimating your tax liability in advance helps you avoid surprises at the end of the financial year.
Simplifies Complexity: Indian tax laws, with their various slabs, deductions, and surcharges, can be complex. A calculator automates this process.

Key Benefits

Regime Comparison: Instantly compare your tax liability under the Old and New tax regimes.
Accurate Estimation: Calculates tax based on the official slabs for FY 2023-24.
Handles Deductions: Allows you to input various deductions to see their impact under the Old Regime.
User-Friendly Interface: Simple inputs for income and deductions with a clear result summary.
Clear Breakdown: Shows taxable income, tax amount, cess, and total tax payable.
Educational Tool: Helps users understand how their income is taxed and the benefits of different deductions.
Free and Online: Use this free online income tax calculator on Toolchesthub anytime without any cost.

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How to Use Income Tax Calculator

Select Financial Year:
Choose the financial year for which you want to calculate the tax (e.g., FY 2023-24).
Enter Your Gross Income:
Input your total annual income before any deductions.
Input Your Deductions:
- The tool will have fields for common deductions like Standard Deduction, HRA, Section 80C, Section 80D, etc.
- Fill in the amounts for the deductions you are eligible for and wish to claim.
Click 'Calculate':
The tool will process your information.
Review the Results:
The calculator will display a clear comparison of your tax liability under both the Old and New Tax Regimes. It will highlight which regime is more tax-efficient for you and provide a detailed breakdown of the calculation for both.

Old vs. New Tax Regime (FY 2023-24 / AY 2024-25)

The key difference lies in the tax rates and the availability of deductions and exemptions.

Old Tax Regime

Offers higher tax rates but allows you to claim over 70 deductions and exemptions, such as HRA, LTA, Section 80C (up to ₹1.5 lakh), Section 80D (health insurance), interest on home loan (Section 24b), etc. This regime is beneficial for those who make significant tax-saving investments.

New Tax Regime (Default)

For FY 2023-24, this is the default regime. It offers lower, more streamlined tax rates but you must forgo most of the common deductions and exemptions. The only significant deductions allowed are the Standard Deduction of ₹50,000 (for salaried individuals) and deduction for employer's contribution to NPS (Section 80CCD(2)).

Income Tax Slabs (FY 2023-24 / AY 2024-25)

New Tax Regime Slabs

Up to ₹3,00,000: No tax
₹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 Slabs (For individuals < 60 years)

Up to ₹2,50,000: No tax
₹2,50,001 - ₹5,00,000: 5%
₹5,00,001 - ₹10,00,000: 20%
Above ₹10,00,000: 30%

Note: A tax rebate under Section 87A is available in both regimes if your taxable income is below a certain threshold (₹7 lakh in New Regime, ₹5 lakh in Old Regime). Health & Education Cess of 4% is applicable on the final tax amount in both regimes.

Frequently Asked Questions (FAQs)

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Conclusion

The Income Tax Calculator India on Toolchesthub is a vital resource for effective tax planning. By providing a clear comparison between the Old and New tax regimes, it empowers you to make an informed choice and potentially save a significant amount on your taxes.

Use this free online tax calculator tool to get a clear estimate of your tax liability for FY 2023-24 and take control of your financial planning today!