Income Tax Calculator
Plan Your Taxes Smartly with Clarity
Understanding your income tax liability is key to financial planning, ensuring you maximize savings while staying compliant. Our Income Tax Calculator estimates your tax for FY 2024-25 (AY 2025-26) based on your annual income, deductions, and choice of tax regime (old or new). Whether you’re a salaried professional, freelancer, or business owner, this tool helps you compare regimes and optimize deductions for a stress-free tax season.
Begin by entering your annual taxable income—gross income minus exempt allowances (e.g., HRA). Input the standard deduction (₹50,000 for old regime, ₹75,000 for new). For the old regime, add Section 80C deductions (up to ₹1.5 lakh for PPF, ELSS, etc.) and other deductions (e.g., ₹50,000 for 80D health insurance). Select the tax regime: old (with deductions) or new (simpler, fewer deductions). The calculator computes your taxable income, tax, 4% cess, and total liability, showing how your choices impact your taxes.
The old vs. new regime choice is pivotal. For example, a ₹10 lakh income with ₹50,000 standard deduction and ₹1.5 lakh 80C in the old regime yields a taxable income of ₹8 lakh, with ₹54,600 tax (including cess). In the new regime, with only ₹75,000 standard deduction, taxable income is ₹9.25 lakh, but tax is ₹44,200 due to lower slabs. If deductions are minimal, the new regime saves more; with high deductions, the old regime wins. Experiment with different incomes or deductions to find the best fit—perhaps add ₹25,000 for 80D to save more in the old regime.
Tax planning goes beyond calculations. Maximize 80C with ELSS or PPF, claim 80D for health insurance, or explore 80G for donations in the old regime. In the new regime, focus on income below ₹7 lakh for zero tax (with rebate under Section 87A). File returns on time to avoid penalties, and track advance tax if income exceeds ₹10 lakh. This calculator helps you test scenarios, but consult a tax professional for complex cases, like capital gains or business income. A high credit score also aids loan-linked tax benefits, like home loan interest under Section 24.
Taxes fund public services but shouldn’t drain your dreams—a new home, a secure retirement, or a family vacation. This calculator empowers you to plan efficiently. As of April 2025, with evolving tax rules and rising incomes, optimizing your tax strategy is crucial. Input your details, compare regimes, and take control of your finances. Let this tool guide you toward tax savings, ensuring every rupee works for your goals.