Income Tax Calculator

Understanding Income Tax (New Regime - Simplified)

India offers taxpayers a choice between the Old Tax Regime (with various deductions and exemptions like HRA, 80C, 80D) and the New Tax Regime (introduced in FY 2020-21 and made the default from FY 2023-24, with lower tax rates but fewer deductions).

This calculator focuses **only on the New Tax Regime (as applicable from FY 2023-24 / AY 2024-25 onwards)** and provides a simplified estimate.

Key Features of New Tax Regime (FY 2023-24 onwards)

• Standard Deduction: A standard deduction of ₹50,000 is available for salaried individuals and pensioners.
• Tax Slabs: Features lower tax rates across different income slabs compared to the Old Regime (without deductions).
  • Up to ₹3 Lakh: Nil
  • ₹3 Lakh to ₹6 Lakh: 5%
  • ₹6 Lakh to ₹9 Lakh: 10%
  • ₹9 Lakh to ₹12 Lakh: 15%
  • ₹12 Lakh to ₹15 Lakh: 20%
  • Above ₹15 Lakh: 30%
• Rebate (Section 87A): Individuals with taxable income up to ₹7 Lakh pay zero tax due to a rebate.
• Limited Deductions: Most common deductions like those under Section 80C (PF, ELSS, Life Insurance), 80D (Mediclaim), HRA exemption, etc., are **not** available under this regime. Only a few specific deductions (like employer's NPS contribution u/s 80CCD(2)) are allowed.
• Cess: A Health and Education Cess of 4% is levied on the calculated income tax amount. (This calculator shows tax *before* cess).

Disclaimer: This is a simplified calculator for the New Tax Regime only and excludes cess. It does not account for all possible income sources, deductions (like employer NPS contribution), or specific taxpayer categories (e.g., senior citizens have different slabs in the Old Regime). Tax laws are complex and subject to change. Always consult official Income Tax Department resources and a qualified tax professional for accurate tax calculation and planning.