Income Tax Calculator Income Sources Deductions (Old Regime Only)
An income tax calculator is a tool that helps individuals and businesses estimate the amount of income tax they are required to pay based on their income, deductions, and other relevant financial information. It considers factors such as taxable income, tax brackets, deductions, credits, and other tax details to estimate your tax liability.
Income tax can be paid through tax deducted at source (TDS) during salary disbursement or via the income tax return portal managed by the Central Board of Direct Taxes (CBDT). Online tax payment provisions ensure individuals pay required taxes on earnings from all sources.
Understanding Income Tax Slabs
Income tax slabs are different income ranges taxed at varying rates. In India, these slabs are categorized into ranges, each with a specific tax rate. They determine how much income tax an individual must pay based on total income.
The slabs may change yearly based on new tax laws and regulations, so always refer to the latest guidelines.
The three categories of individual taxpayers in India are:
- Individuals (Below 60 years of age)
- Senior Citizens (60 years or more but less than 80 years)
- Very Senior Citizens (80 years or more)
Deductions/ Exemptions under Old vs New Tax Regime
The tax deductions and exemptions under the old vs new tax regime for FY 2023-24 are as follows:
| Tax Deductions/ Exemptions | Details | Old Tax Regime | New Tax Regime (from April 1, 2023) |
|---|---|---|---|
| Income Limit for Tax Rebate | Income tax rebate provided for a certain income limit | ₹5 lakhs | ₹7 lakhs |
| Section 87A | 100% rebate up to ₹7 lakhs income | ₹12,500 | ₹25,000 |
| Standard Deduction | For salaried individuals | ₹50,000 | ₹50,000 |
| Effective Tax-Free Income | After deductions/exemptions | ₹5.5 lakhs | ₹7.5 lakhs |
| HRA Exemption | House Rent Allowance | Yes | No |
| Section 80C | Investments in ULIP/ELSS/LIC/PPF etc. | Yes | No |
| Section 80D | Medical Insurance Premium | Yes | No |
| Section 80E | Interest on Education Loan | Yes | No |
| Section 80EEB | Interest on EV Loan | Yes | No |
| Section 80JJAA | New Employment Deduction | Yes | Yes |
| Section 24(B) | Interest on Home Loan (Self-occupied) | Yes | No |
| Section 80CCH | Contribution to Agniveer Corpus Fund | Yes | Yes |
Understanding Income Tax Calculator Online
Steps to use an online income tax calculator:
- Visit the Income Tax Calculator page.
- Select assessment year (e.g., 2024-2025 for FY 2023-2024).
- Choose your residence status (Resident, NRI, etc.).
- Enter PAN, Aadhaar, and address.
- Select a tax regime (Old or New).
- Add income sources — salary, business, capital gains, etc.
- Claim deductions (if under old regime).
- Click calculate to get your estimated tax liability including surcharge and cess.
The calculator provides estimates — consult a tax advisor for accuracy when filing returns.
How much tax will be deducted from my salary?
Tax Deducted at Source (TDS) depends on salary, residency status, and claimed deductions under sections like 80C, 80D, etc. Employers use this to estimate annual liability and deduct monthly. You can also use online salary tax calculators for estimates.
Benefits of Calculating Income Tax
- Stay Compliant: Avoid penalties by filing returns correctly.
- Financial Planning: Helps budget and set financial goals.
- Loan & Visa Applications: ITR serves as income proof.
- Claim Refunds: Identify excess deductions for refund claims.
- Track Investments: Monitor and optimize tax-saving instruments.
- Future Proofing: Maintain financial clarity for audits.
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