Smart Income Tax Calculator
Compare old vs new tax regimes, calculate income tax instantly, and discover smart tax-saving insights for FY 2024-25.
How income tax is calculated
Enter your income
Annual salary, bonus, and other income (rental, freelance, interest) sum up to your gross total income.
Claim eligible deductions
Old regime: 80C (1.5L), 80D, home loan, NPS, HRA, education loan. New regime: just the ₹75K standard deduction.
Apply slabs
Progressive rates kick in — 5/20/30% (old) or 5/10/15/20/30% (new). 87A rebate zeros tax up to ₹5L (old) or ₹7L (new) taxable income.
Add cess and surcharge
4% Health & Education Cess on base tax. Surcharge 10-37% if your taxable income exceeds ₹50 lakh.
Best tax-saving tips for salaried Indians
Max out 80C (₹1.5L)
ELSS / PPF / EPF / Tax-saving FDs / Life insurance premiums. Saves up to ₹46,800 if you're in the 30% bracket.
Add NPS for ₹50K extra
Section 80CCD(1B) is over and above 80C — additional ₹50K deduction = up to ₹15,600 tax saving.
Health insurance (80D)
Up to ₹25K for self+family + ₹25-50K for parents. Practical safety net that doubles as a tax deduction.
Use HRA fully
If you live in a rented home, claim HRA exemption — often the largest deduction for salaried folks in metros.
Home loan interest (Sec 24)
₹2L on self-occupied; full interest on let-out property. Combined with 80C principal repayment (within ₹1.5L cap).
Education loan (80E)
Full interest paid on education loans is deductible — no cap. Available for 8 years from start of repayment.
Old vs New Tax Regime — Explained
Old Regime
Higher rates, but a buffet of deductions. Best for people with significant 80C investments, home loans, HRA, and health insurance.
| Income | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
New Regime (default)
Lower slab rates but most deductions disabled. Best for people without big tax-saving investments.
| Income | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
Section 80C explained
The most popular deduction in the old regime — combined cap of ₹1,50,000 across: EPF, PPF, ELSS mutual funds, life insurance premiums, NSC, tax-saving FDs (5-year lock-in), tuition fees (up to 2 children), principal repayment on a home loan, and Sukanya Samriddhi. Maxing out 80C saves you ₹46,800 if you're in the 30% bracket (excluding cess).
HRA tax benefits guide
House Rent Allowance is exempt up to the LEAST of: (1) actual HRA received, (2) rent paid minus 10% of basic salary, (3) 50% of basic salary (metro) / 40% (non-metro). You need rent receipts and your landlord's PAN if annual rent exceeds ₹1 lakh. HRA exemption is one of the biggest tax savers for renters in big cities.
Salary tax planning tips
- Start in April, not March. Spreading 80C investments across the year smooths cash flow and lets you average market entry.
- ELSS > tax-saving FDs. 3-year lock-in vs 5-year, equity returns historically beat FD rates.
- Re-evaluate regime every year. Salary hikes, new home loans, or new investments can flip the answer.
- Don't take loans just for deductions. Pay 30% interest to save 30% tax = math doesn't work.
- Watch the surcharge cliff at ₹50L. Just over ₹50L taxable triggers a 10% surcharge — sometimes worth bumping deductions to stay below.
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Frequently asked questions
Common questions about Indian income tax, regimes, deductions, and how to choose the optimal regime.