Income Tax Calculator
Plan your finances with clarity using our Income Tax Calculator for the financial year 2023-24 (Assessment Year 2024-25). This tool provides a detailed comparison of your tax liability under both the Old and New tax regimes, helping you choose the most beneficial option. Simply enter your income and applicable deductions to get an instant, accurate estimate of your tax payable.
Income Tax Calculator (India, FY 2023-24)
Estimate your tax liability by comparing the Old and New tax regimes.
Discover More Tools
What is Income Tax Calculator?
What is Income Tax?
Income tax is a direct tax that a government levies on the income of its citizens. In India, it is calculated based on different income slabs. For salaried individuals, it is often deducted at source (TDS) by the employer. The Indian government offers two tax regimes for individuals: the traditional Old Regime, which allows for various deductions and exemptions, and the New Regime, which offers lower tax rates but forgoes most deductions.
Why is it Important?
Why Use an Income Tax Calculator?
An income tax calculator is an indispensable tool for financial planning. It helps you:
- Choose the Right Tax Regime: By comparing your tax outgo in both the Old and New regimes, you can make an informed decision that saves you money.
- Plan Your Investments: If the Old Regime is more beneficial, the calculator shows you how much you can save by utilizing deductions like 80C, 80D, etc.
- Avoid Surprises: Get a clear estimate of your tax liability to avoid any surprises at the time of filing your return.
- Manage Your Finances: Understanding your net take-home salary after tax helps in better budgeting and financial management.
Key Benefits
- Compare tax liability under the Old and New tax regimes.
- Calculates tax based on the latest income tax slabs for FY 2023-24.
- Accounts for major deductions like 80C, 80D, HRA, and more.
- Provides a clear breakdown of your taxable income and final tax payable.
- Helps in effective tax planning and savings.
You Might Also Like
How to Use Income Tax Calculator
- Enter Your Gross Income: Input your total estimated annual income from all sources (e.g., salary, interest, etc.).
- Select Your Age: Choose the appropriate age category, as this affects the basic exemption limit under the Old Regime.
- Enter Your Deductions (for Old Regime): Click on the 'Enter Deductions' section and fill in your planned investments and expenses like PPF, ELSS (under 80C), health insurance (80D), home loan interest, etc.
- Calculate and Compare: Click the 'Calculate Tax' button. The tool will display a side-by-side comparison of your tax liability under both regimes, highlighting the one that is more beneficial for you.
Frequently Asked Questions (FAQs)
Continue Exploring
Conclusion
Making an informed choice between the Old and New tax regimes can lead to significant savings. Our Income Tax Calculator simplifies this complex decision by providing a clear, data-driven comparison. Take control of your tax planning today by estimating your liability and identifying potential savings with this easy-to-use tool.