Income Tax Calculator (FY 2024-25)
Instantly calculate your tax liability. Compare Old vs New Tax Regimes to maximize your take-home salary.
Income Details
Deductions (Old Regime)
Standard Deduction of ₹50,000 is automatically applied to both regimes.
Detailed Tax Computation
| Particulars | New Regime (₹) | Old Regime (₹) |
|---|
The Ultimate Guide to Income Tax in India (FY 2024-25)
Master the Indian taxation system. Learn the exact differences between the Old and New Tax Regimes, understand Section 87A rebates, and formulate a strategy to maximize your take-home salary.
Understanding the Indian Income Tax System
Income tax is a direct tax levied by the Government of India on the income earned by individuals, Hindu Undivided Families (HUFs), companies, and other entities during a financial year. To simplify tax compliance and offer flexibility, the government currently allows individual taxpayers to choose between two parallel taxation structures: the Old Tax Regime and the New Tax Regime.
Choosing the correct regime is the most important financial decision an employee makes at the start of the fiscal year. A wrong choice can lead to tens of thousands of rupees being unnecessarily deducted as TDS (Tax Deducted at Source) from your monthly salary. The SJ480 Income Tax Calculator runs an instant, side-by-side comparison of both regimes to objectively tell you which one saves you more money.
Old Tax Regime vs. New Tax Regime
The New Tax Regime (Default)
Introduced to simplify taxes, the New Regime features wider tax slabs and lower tax rates. As of FY 2023-24, it is the default tax regime. The biggest advantage is a massive tax rebate under Section 87A, making income up to ₹7 Lakhs completely tax-free. Additionally, a Standard Deduction of ₹50,000 was introduced for salaried employees. However, the catch is that you must forfeit almost all popular deductions (like 80C, 80D, HRA, and LTA).
The Old Tax Regime
The Old Regime features higher tax rates and narrower slabs. However, it allows you to utilize over 70 exemptions and deductions to aggressively lower your taxable income. If you pay rent (HRA), have a home loan, invest heavily in EPF/PPF/ELSS (Section 80C up to ₹1.5 Lakhs), and pay medical insurance premiums (Section 80D), the Old Regime can still be highly lucrative. Under this regime, the Section 87A rebate makes income up to ₹5 Lakhs tax-free.
Income Tax Slabs for FY 2024-25 (AY 2025-26)
| Income Slab (New Regime) | Tax Rate | Income Slab (Old Regime) | Tax Rate |
|---|---|---|---|
| Up to ₹3,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% | ₹2,50,001 to ₹5,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹10,00,001 to ₹12,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹12,00,001 to ₹15,00,000 | 20% | - | - |
| Above ₹15,00,000 | 30% | - | - |
* Note: A Health & Education Cess of 4% is added to the computed tax liability in both regimes.
How To Use the SJ480 Tax Calculator
- Enter Gross Salary: Input your total annual CTC minus employer PF/Gratuity. This is your gross income before any deductions.
- Add Other Income: Enter any side income you made this year, such as savings bank interest, FD interest, or rental income.
- Input Deductions (Old Regime): The calculator automatically applies the ₹50,000 standard deduction to both regimes. You only need to manually enter your 80C investments (max ₹1.5L), 80D medical insurance, and HRA/Home loan interest. These will ONLY be applied to the Old Regime calculation.
- Review the Recommendation: The smart algorithm will immediately compute the tax for both regimes, compare them, and highlight exactly which regime saves you more money and by how much.
- Export Computation: Scroll down to the detailed table to see exactly how your tax slabs, rebates, and cess were calculated, and export it for your HR department or Chartered Accountant.
Comprehensive FAQ (26 Advanced Questions)
1. What is the New Tax Regime?
It is a simplified tax structure with lower tax rates and wider slabs, but it removes most of the traditional tax-saving deductions.
2. What is the Old Tax Regime?
The traditional tax structure with higher tax rates, but it allows taxpayers to claim various deductions like 80C, HRA, and home loan interest to reduce taxable income.
3. Which regime is the default?
From FY 2023-24 onwards, the New Tax Regime is the default regime. If you do not inform your employer, they will deduct TDS based on the new regime.
4. What is Section 87A Rebate?
It is a tax rebate. Under the new regime, if your taxable income is up to ₹7L, your tax is reduced to zero. In the old regime, the limit is ₹5L.
5. Is standard deduction available in the new regime?
Yes, salaried employees and pensioners can claim a standard deduction of ₹50,000 under the New Tax Regime as well.
6. What is the breakeven point for choosing old vs new?
If your total deductions (80C, HRA, 80D, etc.) exceed ₹3.75 Lakhs, the Old Regime generally saves you more money. Below that, the New Regime usually wins.
7. Can I switch regimes every year?
Salaried individuals can choose a different regime every year when filing ITR. However, those with business/professional income can only switch back to the old regime once in a lifetime.
8. Does the new regime allow Section 80C?
No, you cannot claim the ₹1.5L deduction for EPF, PPF, ELSS, or LIC premiums under the New Tax Regime.
9. Can I claim HRA in the new regime?
No, House Rent Allowance (HRA) exemption is strictly available only under the Old Tax Regime.
10. What is Health & Education Cess?
It is an additional 4% tax levied on your computed income tax amount. This cess is mandatory across both the old and new tax regimes.
11. Are home loan interest deductions allowed?
Under the Old Regime, you can claim up to ₹2 Lakhs (Sec 24b). Under the New Regime, deduction on self-occupied property interest is NOT allowed.
12. What about the National Pension System (NPS)?
Employer contribution to NPS (Sec 80CCD(2)) is deductible in BOTH regimes. However, the extra ₹50,000 self-contribution (Sec 80CCD(1B)) is only for the Old Regime.
13. Is Leave Travel Allowance (LTA) exempt in the new regime?
No, LTA exemption is only available if you opt for the Old Tax Regime.
14. What is Section 80D?
It allows deduction for health insurance premiums. You can claim up to ₹25k for yourself and up to ₹50k for senior citizen parents under the Old Regime only.
15. Is gratuity taxable?
Gratuity received upon retirement/resignation is exempt up to ₹20 Lakhs for non-government employees in both tax regimes.
16. What is the maximum non-taxable income in the new regime?
Because of the ₹50k standard deduction and the ₹7L rebate (Sec 87A), a salaried individual earning exactly ₹7,50,000 pays zero tax in the New Regime.
17. Do I need to submit investment proofs for the New Regime?
No. Since almost all deductions are removed, the New Regime is highly hassle-free. You do not need to submit rent receipts, LIC receipts, or ELSS statements to HR.
18. What is Marginal Relief?
If your income slightly exceeds ₹7L in the new regime, the tax jumps significantly. Marginal relief ensures the extra tax payable is not more than the income that exceeded ₹7L.
19. How are bank FD interests taxed?
Bank FD interest is added to "Income from Other Sources" and taxed according to your slab rate in both regimes.
20. What is Surcharge?
A surcharge is a "tax on tax" applied only to high-net-worth individuals (income > ₹50 Lakhs). The maximum surcharge rate was recently reduced in the New Regime.
21. Can I change my regime while filing ITR?
Yes. Even if you declared the New Regime to your employer and they deducted TDS accordingly, you can switch to the Old Regime when filing your final ITR to claim a refund.
22. Is EPF interest taxable?
EPF interest is tax-free in both regimes, provided your own annual contribution to the EPF does not exceed ₹2.5 Lakhs.
23. How are mutual fund capital gains taxed?
LTCG (Long Term Capital Gains) on equity funds is taxed at 12.5% for gains above ₹1.25L. This is a special rate and is separate from your slab rates/tax regime choice.
24. What is Section 80TTA?
It allows a deduction of up to ₹10,000 on interest earned from savings accounts. It is only available under the Old Tax Regime.
25. Are gifts taxable?
Gifts from specified relatives (parents, spouse) are tax-free. Gifts from non-relatives exceeding ₹50,000 in a year are fully taxable under "Income from Other Sources".
26. How accurate is this calculator?
This calculator applies the exact FY 2024-25 (AY 2025-26) tax slabs, standard deductions, and 87A rebates. It provides a highly accurate estimate for standard salaried profiles.
SJ480: Advanced Financial Solutions
The SJ480 Income Tax Calculator provides employees, HR professionals, and freelancers with an instant, powerful interface to project their tax liabilities. Our platform does not require sign-ups, nor do we track your financial inputs. Utilize our complete suite of calculators—including our Salary Calculator, SIP, and EMI tools—to architect a comprehensive and secure personal finance ecosystem.
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Simply enter your annual income, deductions and other required details to estimate your total tax payable. Compare both the old and new tax regimes, understand your taxable income and plan your finances more effectively before filing your income tax return.
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SJ480 is useful for salaried employees, freelancers, consultants, business owners, students, accountants and tax professionals who want quick and accurate income tax estimates. Compare different tax regimes, calculate deductions and estimate your final tax liability without complex spreadsheets.
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SJ480 is a free alternative to popular income tax calculators. Instantly calculate your estimated tax liability, compare old and new tax regimes, estimate taxable income and plan your taxes without subscriptions, registrations or hidden charges. Make smarter financial decisions using SJ480's free online Income Tax Calculator.