Income Tax Calculator
Detailed side-by-side tax analysis and optimization for FY 2024-25 (Assessment Year 2025-26).
Gross Income Details
Deductions (Old Regime Only)
Side-by-Side Slabs Comparison
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Comprehensive Guide to Indian Income Tax Calculation (FY 2024-25 / AY 2025-26)
Calculating income tax in India requires comparing two systems: the Old Tax Regime and the New Tax Regime. Under the Finance Act, the New Tax Regime is designated as the default regime, but taxpayers can actively opt back into the Old Tax Regime if it yields lower tax liability.
Old Tax Regime vs. New Tax Regime: Key Differences
The primary trade-off between the two regimes lies in how deductions are handled:
- Old Tax Regime: Features higher slab rates but allows you to deduct expenses like Section 80C (PPF, EPF, ELSS, Life Insurance up to ₹1.5 Lakhs), Section 80D (Health Insurance premium up to ₹25,000 for self/family, and ₹50,000 for senior citizens), Section 24b (Interest paid on home loans up to ₹2 Lakhs), HRA (House Rent Allowance), and LTA (Leave Travel Allowance). For checking standard loan structures and EMIs before locking in Section 24b deductions, you can use our Loan Comparison Tool.
- New Tax Regime: Features lower tax rates and wider tax slabs but drops almost all deductions. The only deduction permitted is the standard deduction of ₹75,000 (increased from ₹50,000 starting in the July 2024 Union Budget).
Section 87A Tax Rebates
To reduce the tax burden on middle-class families, Section 87A offers rebates that make tax liability completely zero for lower-income taxpayers:
- Old Regime: Taxpayers with net taxable income up to ₹5,00,000 after all deductions receive a rebate of up to ₹12,500, rendering their net tax zero.
- New Regime: Taxpayers with net taxable income up to ₹7,00,000 receive a rebate of up to ₹25,000, rendering their net tax zero.
Additional Levies: Surcharge and Cess
For high-income individuals earning above ₹50 Lakhs, a Surcharge is added on top of the calculated basic tax (varying from 10% to 25% depending on income brackets). Furthermore, a mandatory **4% Health and Education Cess** is added to the combined sum of tax and surcharge for all categories of taxpayers.
For business owners and corporate entities seeking to calculate indirect taxes on commercial sales, you can utilize our GST Calculator. If you want to check long-term compound interest projections on investments like ELSS or mutual funds, visit our SIP Calculator.