Income Tax Calculator 2024

An income tax calculator is a tool that helps you estimate your tax liability. It takes into account your income, deductions, and credits to calculate the amount of taxes you owe. It simplifies the complex process of tax calculation and provides a quick overview of tax obligations.

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What is the Old vs New Tax Regime Income Tax Calculator?

An Income Tax Calculator is an online financial tool that helps you estimate the amount of income tax you are required to pay to the Central Board of Direct Taxes (CBDT). It is especially useful during income tax - filing season when you need to determine your tax liability for the previous year.

The income tax calculator takes into account the following factors that can affect your tax liability:

  • Income: Includes wages, salaries, self-employment income, rental income, interest, dividends, and other sources of income

  • Deductions: Includes education expenses, medical expenses, mortgage interest, and charitable contributions

  • Filing Status: Includes single, married filing jointly, married filing separately, or head of household

  • Dependents: Such as children or other qualifying relatives

  • Taxable Events: Such as selling investments, realizing capital gains or losses, or receiving distributions from retirement accounts

  • Tax Brackets of Your Income: As per your chosen old tax regime or new tax regime.

By inserting the relevant financial information into an old vs new tax regime calculator online, you can get an approximate idea of your taxes and eligibility for tax exemptions as per the new tax regime vs the old tax regime.

Steps to Use of Income Tax Calculator 2024

Using Policybazaar Income Tax Calculator is a simple and easy way to estimate your tax liability and plan your finances better. 

Follow the steps mentioned below to learn the use of the Policybazaar Income Tax Calculator available online:

Step 1: Visit the Policybazaar website, go to the Insurance product section, and explore the investment plans. Within this section, you'll find the “Income Tax Calculator”.

Step 2: Enter the following details in the calculator:

  • Annual income (from salary and other sources)

  • Interest income

  • Rental income

  • Capital gains

  • Tax exemptions

  • Tax deductions (such as investments in ELSS, PPF, life insurance, health insurance, etc.)

Step 3: After entering all the details, click the "Calculate Tax" button.

Step 4: The old vs new tax regime calculator will provide you with an estimate of the following information:

  • Your net taxable income

  • Tax liability for the Financial Year 2024-25 (AY 2025-26)

Step 5: You can also compare different tax-saving options and their benefits using the income tax calculator.

Step 6: Additionally, you can change the input values to see how they impact your tax liability and plan your finances accordingly.

Illustration of Income Tax Calculator 2024

Ms. Preeti, a salaried employee, earns a basic salary of Rs. 15,00,000 per annum. She lives in a rented apartment in Delhi where she pays a rent of Rs. 30,000 per month, and her company gives her a monthly HRA of Rs. 40,000 along with Special Allowances of Rs. 20,000 per month and an annual LTA (Leave Travel Allowance) of Rs. 20,000.

The Gross Total Income from the Salary of Ms Preeti under the Old and New Tax Regime will be:

Details Amount Exemptions Taxable Income as per the Old Regime Taxable Income as per the New Regime
Basic Income Rs. 15,00,000 - Rs. 15,00,000 Rs. 15,00,000
House Rent Allowance Rs. 4,80,000 3,60,000 Rs. 1,20,000 Rs. 4,80,000
Special Allowance Rs. 2,40,000 - Rs. 2,40,000 Rs. 2,40,000
Leave Travel Allowance (LTA) Rs. 20,000 Rs. 16,000  Rs. 4,000 Rs. 20,000
Standard Deductions - Rs. 50,000 Rs. 50,000 Rs. 50,000
Net Salaried Income  - Rs. 18,14,000 Rs. 21,90,000

Now, Ms. Preeti has an FD (Fixed Deposit) and earns an annual interest Rs. 14,000 from it. She also earns an interest income of Rs. 10,000 p.a. from her savings account. Some important investments made by Preeti to save tax are:

  • ELSS (Equity Linked Savings Scheme) funds of Rs. 20,000.

  • PPF (Public Provident Fund) investment of Rs. 50,000.

  • Medical insurance of Rs. 15,000.

  • LIC premium of Rs. 10,000.

Invest & Save upto ₹46,800 per annum in taxInvest & Save upto ₹46,800 per annum in tax

Calculation of Income Tax under the Old Tax Regime

Details Amount (in Rs.) Total (in Rs.)
Salary 18,14,000  -
Other Sources Income 24,000  -
Gross Total Income  - 18,38,000
Deductions
Section 80C 1,50,000  -
Section 80D 15,000 -
Section 80TTA 10,000 1,75,000
Gross Taxable Income  - 16,63,000
Total tax (including cess)  - Rs. 3,23,856

Calculation of Income Tax under the New Tax Regime

Details Exemptions Amount 
Up to 3,00,000 Exempt from tax NIL
Rs. 3 lakhs - Rs. 6 lakhs 5% [5% of (Rs. 6 lakhs minus Rs. 3 lakhs)] Rs. 15,000
Rs. 6 lakhs - Rs. 9 lakhs 10% [10% of (Rs. 6 lakhs minus Rs. 9 lakhs)] Rs. 30,000
Rs. 9 lakhs - Rs. 12 lakhs 15% [15% of (Rs. 9 lakhs minus Rs. 12 lakhs)] Rs. 45,000
Rs. 12 lakhs - Rs. 15 lakhs 20% [20% of (Rs. 12 lakhs minus Rs. 15 lakhs)] Rs. 60,000
Rs. 15 lakhs & Above 30% [30% of (21,90,000 -15,00,000)] Rs. 2,07,000
Cess 4% of total tax [4% of (Rs. 15,000 + Rs. 30,000+ Rs. 45,000 + Rs. 60,000 + Rs 2,07,000) Rs. 14,280
Total Income Tax Rs 15,000 + Rs. 30,000+ Rs. 45,000 + Rs. 60,000 + Rs. 2,07,000 + Rs. 14,280 Rs. 3,71,280

Income Tax Slab Rate

The income tax slabs in India highlight the taxable rate payable by you based on your annual income and earnings from all sources.

Refer to the following income tax rates for new vs. old tax regime:

Income Tax Slab for AY 2025-26 Income Tax Rates for Old Tax Regime (in % p.a.) Income Tax Rates for New Tax Regime* (in % p.a.)
Up to Rs. 2,50,000 NIL NIL
Rs. 2,50,000 to Rs. 3,00,000 5% NIL
Rs. 3,00,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 6,00,000 10% 5%
Rs. 6,00,000 to Rs. 7,50,000 10% 10%
Rs. 7,50,000 to Rs. 9,00,000 15% 10%
Rs. 9,00,000 to Rs. 10,00,000 15% 15%
Rs. 10,00,000 to Rs. 12,00,000 20% 15%
Rs. 12,00,000 to Rs. 12,50,000 20% 20%
Rs. 12,50,000 to Rs. 15,00,000 25% 20%
More than Rs. 15,00,000 30% 30%

***Note: The same tax rates will continue, there is no change in the rates as per Union Budget 2024.

Income Tax Exemptions & Deductions under Old Tax Regime FY 2024-25 (AY 2025-26):

  • Section 87A: You can avail of a tax rebate of up to Rs. 12,500 if you are earning Rs. 5 lakhs or below.

  • Section 80C: You can avail of a tax rebate of up to Rs. 1.5 lakhs on the premium deposited for schemes like ULIP (Unit Linked Insurance Plan), Equity-Linked Saving Scheme (ELSS), and PPF (Public Provident Fund).

  • Section 80CCD (1B): Under this clause, you can avail of a tax exemption of up to Rs. 2 lakhs for the premium deposited under a National Pension Scheme (NPS).

  • Section 80D: Tax exemption of up to Rs. 25,000 can be availed on medical insurance premium bills for self and family. The limit may extend to Rs. 50,000 in the case of senior citizens.

  • Section 80G: Any donation to charitable organizations or science & discovery can be fully exempted from taxable income under this section.

  • Section 80E: The interest paid on education loans is fully exempted for up to 8 years.

  • Section 80TTA/80TTB: Under Section 80TTA, the income or interest from savings accounts up to Rs. 10,000 will be waived from taxable income. At the same time, the limit extends to Rs. 50,000 for senior citizens on all forms of interest.

  • Section 80GG: You can avail of tax exemption on annual payment of house rent.

  • Section 10(14): Exemption for specific allowances like children's education allowance, hostel allowance, etc.

  • Standard DeductionA flat deduction of Rs. 50,000 is allowed to salaried individuals and pensioners.

  • House Rent Allowance (HRA): Tax exemption on the portion of the salary received as HRA, subject to certain conditions.

  • Leave Travel Allowance (LTA): Exemption for expenses incurred on domestic travel.

Income Tax Exemptions & Deductions under New Tax Regime FY 2024-25 (AY 2025-26):

If you choose the new tax regime introduced under Section 115 BAC in the Income Tax Act, 1961, you can avail of only a few of the following tax exemption and deduction benefits. Let us learn them below:

  • Transport Allowance for PwD: Reimbursement of travel expenses incurred by PwD for commuting between place of residence and place of duty.

  • Conveyance Allowance: Reimbursement of expenses incurred on conveyance in the performance of duties of an office.

  • Travel/ Tour/ Transfer Compensation: Reimbursement of expenses incurred on travel, tour, or transfer.

  • Perquisites for Official Purposes: Reimbursement of expenses incurred for official purposes, such as meals, accommodation, and transportation.

  • Exemption for Voluntary Retirement Scheme: Income from a voluntary retirement scheme is exempt from tax.

  • Gratuity Amount: The gratuity amount received on retirement or death is exempt from tax.

  • Leave Encashment: The leave encashment amount received is exempt from tax.

  • Interest on Home Loan on Lent-Out Property: Interest paid on a home loan for a rent-out property is eligible for deduction.

  • Gifts of up to Rs. 5,000: Gifts received up to Rs. 5,000 in a year are exempt from tax.

  • Employer's Contributions to Employees’ NPS Accounts: Employer's contributions to employees' NPS accounts are eligible for deduction.

  • Additional Employee Costs: Additional employee costs incurred by an employer are eligible for deduction.

  • Standard Deductions on Family Pension: Standard deduction is available on a family pension received by a taxpayer.

  • Deductions on Deposits in Agniveer Corpus Fund: Deduction is available on deposits made in the Agniveer Corpus Fund.

To Sum Up!

The use of an income tax calculator can help you plan your finances better and make informed decisions about your investment options and tax-saving strategies. You can use this online calculator to quickly know your tax liability. 

FAQ's

  • How is 7.5 lakh income tax-free?

    As per the Union Budget 2024-25, under the new tax regime, you don't need to pay any tax if your income is up to 7.5 lakhs.  However, under the old tax regime for 2023-24, which will continue in 2024-25 as well, individuals with up to ₹3 lakh income are exempt.

    If your income is between ₹3 lakh and ₹7.5 lakh, you get an additional ₹25,000 rebate under multiple income tax sections.

  • How much tax do I pay on 10 lakhs?

    Depends on your chosen tax regime and deductions:
    • Old regime: Tax could be around ₹1,97,500.
    • New regime: Tax could be around ₹2,10,000.

    Use an old vs new tax regime calculator for accurate estimates based on your details.

  • How much tax should one pay on the income?

    The amount of tax you owe depends on the following income tax slabs under new vs. old tax regime:
    Income Tax Slab for AY 2023-24 Income Tax Rates for Old Tax Regime (in % p.a.) Income Tax Rates for New Tax Regime* (in % p.a.)
    Up to Rs. 2,50,000 NIL NIL
    Rs. 2,50,000 to Rs. 3,00,000 5% NIL
    Rs. 3,00,000 to Rs. 5,00,000 5% 5%
    Rs. 5,00,000 to Rs. 6,00,000 10% 5%
    Rs. 6,00,000 to Rs. 7,50,000 10% 10%
    Rs. 7,50,000 to Rs. 9,00,000 15% 10%
    Rs. 9,00,000 to Rs. 10,00,000 15% 15%
    Rs. 10,00,000 to Rs. 12,00,000 20% 15%
    Rs. 12,00,000 to Rs. 12,50,000 20% 20%
    Rs. 12,50,000 to Rs. 15,00,000 25% 20%
    More than Rs. 15,00,000 30% 30%
  • How to calculate tax on Rs. 7 lakh income?

    In FY 2023-24, an individual with an income of Rs. 7 lakh actually won't pay any income tax under either the new or old tax regime! Here's why:
    • New Tax Regime: For individuals with taxable income up to Rs. 7 lakh, the new tax regime offers a full tax rebate under section 87A. This means you owe no taxes at all.

    • Old Tax Regime: While the basic exemption limit is lower at Rs. 2.5 lakh, even under the old regime, you can claim various deductions under section 80C (up to Rs. 1.5 lakh) and other sections, which can easily bring your taxable income below the Rs. 5 lakh threshold for the rebate under section 87A. This again translates to no tax liability.

  • How to calculate income tax of Rs. 5,00,000?

    how to calculate the income tax for Rs. 5,00,000 under both the old and new tax regimes in India for FY 2023-24:

    Old Tax Regime:

    • Taxable Income: Rs. 5,00,000

    • Tax Rebate under Section 87A: Rs. 5 lakhs

    • Total income tax payable: 0

    New Tax Regime:

    • Standard Deduction: Rs. 50,000

    • Taxable Income: Rs. 5,00,000 - Rs. 50,000 = Rs. 4,50,000

    • Tax Rebate under Section 87A: Rs. 7 lakhs

    • Total payable income tax: 0

  • What details should one possess while e-filing ITR (Income Tax Returns)?

    One needs to possess the following details in order to e-filing the ITR:
    • Details of PAN Card, Aadhaar Card, and Current address

    • Bank account details used during the assessment year

    • Income proof such as income from investment, rent, employment, etc.

    • Details of deduction claimed under section 80 or chapter VI-A of Income Tax Act 1961

    • Details of tax paid in advance, such as TDS.

  • Under which section can one claim a deduction on Income tax payable?

    One may claim deductions under section 80 and chapter VI-A of the Income Tax Act 1961.
  • What sources does an assessee need to include while determining taxable income?

    An assessee must include his total salary, house property rent, capital gains, interest on savings, etc. In addition, he should also make a deduction under section 80 of the Income Tax Act 1961.
  • How is my income tax calculated?

    To calculate your income tax, you will need to first calculate your taxable income. Your taxable income is your gross income minus any deductions and exemptions. Deductions are expenses that you can claim to reduce your taxable income. Exemptions are amounts of income that you are not taxed on.

    Once you have calculated your taxable income, you can then look up the tax rate for your income bracket. The tax rate is applied to your taxable income to calculate your income tax liability.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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