India Income Tax Calculator 2024-25

How India's income tax works (2024-25)

India's income tax system is progressive, meaning you pay different rates on different portions of your income. The government has offered two tax regimes: the old regime (with deductions and exemptions) and the new regime (with simpler slabs and a standard deduction). This calculator uses the new regime, which is increasingly popular for salaried employees.

2024-25 Income Tax Slabs (individuals under 60 years, new regime)

• ₹0–₹3 lakh: 0% — no tax due
• ₹3–₹7 lakh: 5% — on amount above ₹3 lakh
• ₹7–₹10 lakh: 10% — on amount above ₹7 lakh
• ₹10–₹12 lakh: 15% — on amount above ₹10 lakh
• ₹12–₹15 lakh: 20% — on amount above ₹12 lakh
• Above ₹15 lakh: 30% — on amount above ₹15 lakh

These slabs apply to taxable income (gross income minus the standard deduction).

Standard Deduction

In the new regime, you get a standard deduction of ₹75,000 (for individuals under 60 years, tax year 2024-25). This is automatically deducted from your gross salary before calculating tax. You don't need receipts or proofs — it's a fixed amount.

For example, on a ₹10 lakh salary: Taxable income = ₹10,00,000 − ₹75,000 = ₹9,25,000. Tax is then calculated on ₹9,25,000, not ₹10 lakh.

Health and Education Cess

On top of income tax, a 4% Health and Education Cess is applied to the total income-tax amount if your taxable income exceeds ₹1 crore. This is a surcharge-like levy to fund public health and education.

Who should use which regime?

• New regime (this calculator): Best for salaried employees with few deductible investments. Simple, lower tax burden if your income is moderate.
• Old regime: Better if you have significant Section 80C investments (EPF, life insurance, home loan principal), Section 80D (health insurance), or other deductions that offset your income.

Most taxpayers compare both regimes before filing and choose the one that results in lower tax.

What this calculator does NOT include

This is a simplified calculator and does not account for:

• Section 80C deductions (₹1.5 lakh limit) — EPF, life insurance, education expenses, home loan principal
• Section 80D deductions (health insurance premiums)
• Other deductions — Section 80E (education loan interest), 80EE (home loan), etc.
• Surcharge — applicable at income above ₹50 lakh, rates vary
• HRA or other allowances — depends on employer structure and city
• TDS — tax deducted at source by your employer (already applied to your salary)
• Age-based slabs — seniors (60+) have higher standard deduction and different rates
• Income from other sources — capital gains, rental income, freelance earnings

For accurate tax planning, always consult a chartered accountant or use the official income tax calculator at incometaxindia.gov.in.

Worked example

On a ₹8 lakh annual salary: Standard deduction = ₹75,000. Taxable income = ₹7,25,000. Tax = 0% on first ₹3 lakh + 5% on ₹3–7 lakh + 10% on ₹7–7.25 lakh = 0 + 20,000 + 2,500 = ₹22,500. Take-home = ₹8,00,000 − ₹22,500 = ₹7,77,500 annually, or about ₹64,791 per month.