fincalculatorIncome Tax Calculator (FY 2024-25)
Calculate your income tax liability and compare the Old vs. New Tax Regime to find which option saves you more money.
Every year, Indian taxpayers face the dilemma of choosing between the Old Tax Regime and the New Tax Regime. With the government pushing for the New Regime by offering lower tax rates and increased slabs, the decision has become even more critical for Financial Year 2024-25 (Assessment Year 2025-26).
Our Income Tax Calculator is updated for the latest Union Budget 2024. It helps salaried employees and professionals accurately estimate their tax liability, factoring in the new Standard Deduction of ₹75,000 and updated tax slabs.
Why Use This Tax Calculator?
Calculating taxes manually can be complex due to the varying slabs, cess, and surcharges. This tool simplifies the process by:
- Comparison: Instantly compares tax payable under both regimes.
- Deduction Analysis: Lets you input 80C, 80D, HRA, etc., to see their impact on the Old Regime.
- Accuracy: Accounts for Rebate u/s 87A and Health & Education Cess (4%).
Who Should Use This Calculator?
- Salaried Employees: To plan their investment declarations to their employer.
- Freelancers/Professionals: To estimate advance tax payments.
- Senior Citizens: To check special slab rates applicable to them (Old Regime).
Calculate Your Tax Liability
- Note: Standard Deduction of ₹75,000 is automatically applied.
Taxable Income
₹ 0
Income Tax
₹ 0
Health & Edu Cess (4%)
₹ 0
Total Tax Payable
₹ 0
Net Income
₹ 0
Old vs New Tax Regime: Key Differences
1. New Tax Regime (FY 2024-25)
The New Regime is the default tax regime. It offers lower tax rates but disallows most exemptions and deductions.
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Note: Standard Deduction of ₹75,000 is allowed under New Regime from FY 24-25.
2. Old Tax Regime
The Old Regime allows you to claim deductions to lower your taxable income. The slabs are:
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Common Tax Planning Mistakes
- Last Minute Planning: Rushing to invest in March often leads to poor investment choices (like buying low-return insurance policies) just to save tax.
- Ignoring Section 80D: Medical insurance premiums not only protect your health but also offer a deduction of up to ₹25,000 (₹50,000 for seniors).
- Choosing the Wrong Regime: Don't blindly follow your colleagues. If you have a Home Loan and high HRA, Old Regime might still be better. Calculate first!
Frequently Asked Questions (FAQs)
What is the basic exemption limit for FY 2024-25?
Under the New Tax Regime, the basic exemption limit is ₹3,00,000. Under the Old Tax Regime, it remains ₹2,50,000 for individuals below 60 years, ₹3,00,000 for Senior Citizens (60-80 years), and ₹5,00,000 for Super Senior Citizens (80+ years).
What is Standard Deduction in New Regime?
The Standard Deduction has been increased to ₹75,000 under the New Tax Regime for salaried employees, as proposed in the Budget 2024. This was previously ₹50,000.
Which regime is better: Old or New?
The New Regime is better for those with fewer investments. The Old Regime is beneficial if your total deductions (80C, 80D, HRA, Home Loan Interest) exceed approximately ₹3.75 Lakhs. You should compare both using our calculator.
Is income up to ₹7 Lakhs tax-free?
Yes, under the New Tax Regime, if your taxable income is ₹7 Lakhs or less, you get a rebate under Section 87A of up to ₹25,000, making your tax liability zero.
Does New Regime allow HRA exemption?
No, House Rent Allowance (HRA) exemption and most other common deductions (like 80C, 80D) are NOT available under the New Tax Regime.
Can I choose my tax regime?
Yes. Salaried individuals can choose the beneficial regime every year at the time of filing ITR. However, those with business or professional income can switch back to the Old Regime only once in their lifetime.