Income Tax Calculator
Calculate your income tax anywhere, anytime, accurately using Vakilsearch’s income tax calculator AY 2024-2025
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HRA Exemption
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New regime
Your Tax Results
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Total Gross Income
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Total Deduction
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Total Taxable Income
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Net Payable Tax
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Income Tax Calculation - An Overview
People falling under the taxable income bracket are required to pay a certain percentage of their net annual income in taxes. When earning a monthly income, income tax can be collected either as tax deducted at source or online through the Central Board of Direct Taxes' (CBDT) income tax returns portal. To guarantee that people pay their required taxes on any income derived from other sources, the IRS has allowed for online tax payment. The updated information in the Union Budget for 2023–2024 is reflected in the new tax regime calculator provided on this page.
How to Use Online Vakilsearch Income Tax Calculator
Using the income tax calculator AY 2024-25 is very easy. All you need to do is fill in the basic details, income details, and deductions
Choose the assessment year for which you want to conduct the tax calculation.
Choose your age from the field after that
Then select the ‘income field’. Give specifics about your entire pay (monthly or yearly salary paid without any deductions). You must also provide additional information such as annual rental income, annual interest paid on house loans for the self-occupied and rented property, and annual income from other source
Then, enter the information for different deductions, including the fundamental deductions under Section 87A, Sections 80C, 80CCD (1B), 80D, 80G, 80E, 80TTA, 80TTB, and Section 80GG.
Additionally, include information about interest rates for student loan deposits
To determine your tax, choose the calculate option. The income tax for the new regime will provide the results accurately.
How to Calculate Income Tax for Salaried Persons?
Using an online salary tax calculator, people can figure out their entire tax costs. Such tools use the following factors to reflect a resident or non-resident Indians actual tax due at the end of a fiscal year:
Annual earnings from salaries and profits
Earnings from unrelated sources
Rental income, investments, etc
Applicable tax exemptions, if any
Rental fee and transportation allowance the like
The overall tax liability of people will be shown if the aforementioned pointers are entered with accurate data. The remainder of the taxes, less the taxes previously paid through TDS, can be paid immediately online through the official portal Challan 280. In any case, if more taxes have been paid than have been owed, the government will repay you for the difference within 30 days of your filing.
Taxpayers who submit their returns after the deadline are subject to penalties and interest under Section 234A. Therefore, it's essential to protect in intellect the deadline for ITR filing. But bear in mind that the deadline differs relying on the type of taxpayer. For instance, if you receive a salary, you typically need to file income tax forms by the 31 July of the assessment year.
How to Understand Income Tax Slabs?
Income tax slabs display the overall tax rate that an individual must pay based on their entire annual income from all sources. The taxable Income Calculator assists in calculating the tax due by individuals for the fiscal years 2021–22 by taking into account the tax rates.
Calculating Total Income Tax Liability
Calculating total tax liability is very easy using a new tax regime calculator. However you can calculate the taxable income using the following formula.
Taxable income = Gross income - (deductions + exemptions)
The gross income includes the total of the basic wage, the HRA, the special allowance, the transport allowance, and any other benefits is income from salary. Your income may include tax-free benefits such as travel expenses and phone bill reimbursement. You may request an exemption from HRA if you live on rent and receive HRA.
Example of Calculation of Income Tax
For more clarity on income tax calculation let's consider Mr. Vinoth as an example. He receives a basic salary of ₹1,00,000 per month, HRA of ₹50,000, special allowance of ₹21,000 per month, and an annual LTA of ₹20,000. Vinoth pays a monthly rent of ₹40,000 and resides in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable(Old regime) | Taxable(New regime) |
|---|---|---|---|---|
| Basic Salary | ₹12,00,000 | - | ₹12,00,000 | ₹12,00,000 |
| HRA | ₹6,00,000% | ₹3,60,000 | ₹2,40,000 | ₹6,00,000 |
| Special Allowance | ₹2,52,000 | - | ₹2,52,000 | ₹2,52,000 |
| LTA | ₹20,000 | ₹12,000 (bills submitted) | ₹8,000 | ₹20,000 |
| Standard Deduction | - | ₹50,000 | ₹50,000 | ₹50,000 |
| Gross Total Income from Salary | ₹16,50,000 | ₹20,22,000 |
To compute income tax, it's essential to consider income from various sources:
Income from Salary (the salary received from an employer)
Income from House Property (inclusive of rental income or home loan interest)
Income from Capital Gains (arising from shares or property transactions)
Income from Business/Profession (earnings from freelancing, business, or professional services)
Income from Other Sources (like interest income from savings accounts, fixed deposits, or bonds)
Mr. Vinoth has generated income from a savings account interest amounting to ₹8,000 and a fixed deposit interest income of ₹12,000 during the fiscal year. Additionally, Vinoth has made investments for tax-saving purposes, including a PPF investment of ₹50,000, an ELSS purchase of ₹20,000, paid an LIC premium of ₹8,000, and medical insurance amounting to ₹12,000. Here are the deductions Vinoth can claim under the old tax regime.
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed by Vinoth |
|---|---|---|---|
| Section 80C | ₹1,50,000 | PPF deposit ₹50,000, ELSS investment ₹20,000, LIC premium ₹ 8,000. EPF deducted by employer (Vinoth’s contribution) = ₹1,00,000 *12% *12 = ₹1,44,000 | ₹,50,000 |
| Section 80D | ₹25,000 for self ₹50,000 for parents | Medical insurance premium ₹12,000 | ₹12,000 |
| Section 80TTA | ₹10,000 | Savings account interest ₹8,000 | ₹8,000 |
Calculation of Gross Taxable Income in India (Old Regime)
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | ₹16,50,000 | |
| Income from Other Sources | ₹20,000 | |
| Gross Total Income | ₹16,70,000 | |
| Deductions | ||
| 80C | ₹1,50,000 | |
| 80D | ₹12,000 | - |
| 80TTA | ₹8,000 | ₹1,70,000 |
| Gross Taxable Income | ₹15,00,000 | |
| Total tax on above (including cess) | ₹2,73,000 |
Calculation of Gross Taxable Income in India (New Regime)
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | ₹20,22,000 | |
| Income from Other Sources | ₹20,000 | |
| Gross Total Income | ₹20,000 | |
| Gross Taxable Income | ₹20,42,000 | |
| Total tax on above (including cess) | ₹3,25,104 |
This is how income tax has been calculated for Vinoth under the new tax regime
| Up to ₹3,00,000 | Exempt from tax | 0 |
|---|---|---|
| ₹3,00,000 to ₹6,00,000 | 5% (5% of ₹6,00,000 less ₹3,00,000) | ₹15,000 |
| ₹6,00,000 to ₹9,00,000 | 10% (10% of ₹9,00,000 less ₹6,00,000) | ₹30,000 |
| ₹9,00,000 to ₹12,00,000 | ₹20,000 | ₹45,000 |
| ₹12,00,000 to ₹15,00,000 | 20% (20% of ₹15,00,000 less ₹12,00,000) | ₹60,000 |
| More than ₹15,00,000 | 30% (30% of ₹ 20,42,000 less ₹ 15,00,000) | ₹₹1,62,600 |
| CESS | 4% of total tax (4% of ₹15,000 + ₹30,000+ ₹45,000 + ₹60,000 + ₹1,62,600 | ₹12,504 |
| Total Income Tax | ₹15,000 + ₹30,000+ ₹45,000 + ₹60,000 + ₹1,62,600 + ₹12,504 | ₹3,25,104 |
Various Income Tax Slabs in India
For individuals, Hindu undivided families (HUFs), and NRIs (for income generated in India)
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime |
|---|---|
| 0.0 to ₹2.5 Lakhs | NIL |
| ₹2.5 lakhs to ₹3.00 Lakhs | 5% (tax rebate u/s 87a is available) |
| ₹3.00 lakhs to ₹5.00 Lakhs | 10.00% |
| ₹5.00 lakhs to ₹7.5 Lakhs | 15.00% |
| ₹7.5 lakhs to ₹10.00 Lakhs | 20.00% |
| ₹10.00 lakhs to ₹12.50 Lakhs | 25.00% |
| ₹12.5 lakhs to ₹15.00 Lakhs | Above ₹15 Lakhs 30.00% |
For Senior Citizens (Above 60 Years)
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime |
|---|---|
| 0.0 to ₹2.5 Lakhs | NIL |
| ₹2.5 lakhs to ₹3.00 Lakhs | 5.00% |
| ₹3.00 lakhs to ₹5.00 Lakhs | 5.00% |
| ₹5.00 lakhs to ₹7.5 Lakhs | 10.00% |
| ₹7.5 lakhs to ₹10.00 Lakhs | 15.00% |
| ₹10.00 lakhs to ₹12.50 Lakhs | 20.00% |
| ₹12.5 lakhs to ₹15.00 Lakhs | 25.00% |
| Above ₹15 Lakhs | 30.00% |
For Super Senior Citizens (Above 80 Years)
| Income Tax Slab | Tax Slab Rates for FY 2023-24 as per the New Regime |
|---|---|
| Up to ₹2,50,000 | NIL |
| ₹2,50,001 to ₹5,00,000 | 5.00% |
| ₹5,00,001 to ₹7,50,000 | 10.00% |
| ₹7,50,001 to ₹10,00,000 | 15.00% |
| ₹10,00,001 to ₹12,50,000 | 20.00% |
| ₹12,50,001 to ₹15,00,000 | 25.00% |
| Above ₹15,00,000 | 30.00% |
Over and above the total amount due, a 4% health and education CESS is added to the overall tax rate. The total amount of taxable income is additionally subject to a surcharge at the following rates:
10% of all earnings over ₹50 lakh but under ₹1 crore.
15% of earnings beyond ₹1 crore.
To find the taxes already paid, people can check their TDS certificates. Employees frequently receive Form 16s from their individual companies, which reflect the employee's entire pay and the taxes withheld from it. However, earnings from additional sources, like Incorporating various investments, rental income, if any, royalties, etc. into the total tax liability calculation is necessary.
Income Tax Exemptions
Section 87A:Income under ₹5 lakh is capable for a tax value of up to ₹12,500
Section 80C:Up to ₹1.5 lakh in interest income is repaid in any tax-saving fixed security, public provident fund, national savings certificate, unit-linked protection plan, and equity-linked savings scheme
Section 80CCD (1B):Up to ₹2 lakh of contributions to the national pension system are exempt from taxation.
Section 80D: Tax exemption of up to ₹25,000 on medical insurance premium bills. For older citizens, the cap is improved to ₹50,000
Section 80G: All contributions to charity organisations are completely free from tax computations and these conditions are taken into consideration in this income tax calculator
Section 80E: Interest on student loan is tax-deductible upto eight years of 100% tax rebate
Section 80TTA/80 TTB: Savings account interest income is subject to tax exemptions of up to ₹10,000 under. According to Section 80 TTB, all sources of interest income up to ₹50,000 are completely exempt from taxation for senior citizens
Section 80GG: Tax exemption for income used to pay rent (house rent allowance)
Why Choose Vakilsearch Income Tax Calculator?
Income tax calculation is complex and varies every year with the amendments made by the government. Vakilsearch income tax calculator is here to make your day much easier. Here are some of the perks of using Vakilsearch income tax calculator.
Vakilsearch income tax calculator is very easy to use
It's free of cost and accurate
It's updated as per the new tax regime
You can use it anytime anywhere
Apart from helping you in calculating the tax, we also provide income tax filing services. Consult a tax professional right now and resolve all your queries.
Income Tax Calculator FAQs
Your income, revenues, capital profits, business revenue, retirement distributions, and other references of income are all included in your gross income. Adjustments to revenue can be made for aspects like tuition expenses, dividend on student loans, alimony expenditures, or payments to retirement accounts.
Your employer withholds professional tax, a type of direct tax, from your gross salary. Since the state government imposes this tax, the amount you pay will depend on the state in which you reside. You can only be charged up to a total of ₹2500. The slabs are used to calculate income tax online.
If the individual's professional gross income for the previous year totaled more than ₹10 lakh, they are required to file an ITR. If TDS or TCS totaled ₹25,000 or more for the year, a tax return for that period must be filed. Senior individuals would be liable to this law if their incorporated TDS or TCS is ₹50,000 or further each fiscal year.
The total of the main wage, the HRA, the personal income, the transport income, and any other advantages is income from compensation. Your revenue may include tax-free advantages such as leave, travel, and phone bill compensation.
No tax is paid if your income is less than ₹5 lakhs. 20% of your salary will be withheld if it exceeds ₹5 lakh. This percentage will increase in line with your income.
The name on your income tax PAN card and the name on your ITR is must
PAN must be linked to your bank account in order for your income tax refund to be credited directly to your account when TDS is deducted.
The Tax Deducted at Source is not calculated by the income tax calculator. It does, however, determine your tax obligation for the assessment year.
