Income Tax Calculator - India

What is an Income Tax (Old vs New Regime) Calculator?

An income tax calculator is an online calculator that helps estimate the income tax based on a person's annual income. Income tax can be paid either as tax deducted at source during the disbursement of a monthly salary or through filing returns in the Income Tax Portal. The income tax calculator considers various features, such as annual income, employee PF, house rent allowance, and exemptions, to calculate the income tax. This calculator also helps to decide whether the old regime or the new regime is better for a particular person.

This income tax calculator has been updated based on the Union Budget for the financial years 2023–24 and 2024–25.

INCOME TAX (OLD VS NEW REGIME):

New Tax Regime:

The new tax regime has been effective since April 2020. It is a simplified tax regime (in comparison to the Old Tax Regime) and thus has only one tax slab for all age groups. It has reduced tax rates compared to the old tax regime for some scenarios. Most of the exemptions and deductions that were available in the old tax regime are not allowed here. Only a very few exemptions and deductions are allowed.

List of deductions under the New Tax Regime- Section 80D, Employer's contribution to NPS account, Transport allowances for persons with disabilities, Standard deduction

Old Tax Regime:

This is the tax regime that was before the New tax regime was introduced, you can still avail this and pay Income tax the way you used it in the past.

It has three different tax slabs for three different age groups. It provides a lot of exemptions and deductions that you can make use of to reduce the total amount of income tax.

List of the deductions under the Old Tax Regime- Section 80C, Section 80CCD(1B), HRA, LTA, Section 80E, Section 80TTA, Section 80TTB, etc, standard deductions, etc

Which tax regime should I choose?

It varies from one person to another. You can work out your income tax amount under both the regimes and then choose the one that is best for your situation, and our calculator is best for this.

Every financial year, you can switch between old and new tax regimes. Even if you choose a new tax regime this financial year, you can switch back to the old tax regime in the next financial year, and vice versa. But there is one condition: You can switch between old and new tax regimes if you don't have any kind of business income. If you have any kind of business income, then you can switch back to the old tax regime only once. After that, you can't move to the new tax regime until your business income becomes zero.

How does the Income Tax (Old vs New Regime) calculator work?

How the Income Tax (Old vs. New Regime) calculator works:

Input Values: You have to provide the following details, like:

• Annual Income: The total income that you earn in a year.
• Employee PF: If you have any PF accounts, then fill out the amount that your employer contributes per year.
• House Rent Allowance: the house rent allowance (per year) that you get per year.
• Exemptions under 80C (excluding PF): the total amount of exemptions that you can avail of under 80C.
• Other Exemptions: If you avail of any other exemptions, calculate the total amount, and that will be your other exemptions.
• (Standard deduction, cess, and professional tax are already added to the calculations.)

Output:

• You get to know which regime is better for you (old or new).
• You get to know how much tax you need to pay every year under which regime.

Advantages of Using a Income Tax (Old vs New Regime) Calculator

There are several advantages to using an Income Tax (Old vs. New Regime) calculator:

• This calculator helps you decide whether the old or new regime is better for you.
• This calculator helps you calculate the total income tax that you have to pay in the annual year.
• Instead of manually calculating taxes, which can be time-consuming and prone to mistakes, this calculator provides quick results.
• With the user-friendly, easy-to-use interface, you can use our income tax calculator to easily calculate your income taxes.

Steps to use the Income Tax (Old vs New Regime) Calculator?

Using the Income Tax calculator is a straightforward process. Here's a breakdown of the typical steps involved:

1. Input Annual Income: Enter the Annual Income of yours.
2. Input Employee PF: Enter the total Employee PF amount.
3. Input House Rent Allowance: Enter the total House Rent Allowance, if you get any.
4. Input Exemptions under 80C(excluding PF): Enter the All the exemptions under 80C (excluding PF).
5. Input Other Exemptions: Enter the total value of all other Exemptions.
6. Click on the Calculate button.

Output: The calculator will display the following results:

• Whether the old tax regime or the new tax regime is best for you
• Total income tax that you have to pay
• Total income tax calculation breakdown

Common Mistakes to Avoid While Using the Income Tax(Old vs New Regime) Calculator?

To ensure the accuracy of your calculations, avoid these common pitfalls:

• Don't insert inaccurate values in the inputs of the calculator.
• Don't assume deductions and add them to the input that you are not eligible for.
• Don’t miss out on the deductions that you are eligible for.

FAQS-

Who should file their taxes ?

Any person, whether resident or non-resident, whose income in India exceeds Rs. 2,50,000 during the financial year is required to file an income tax.

When should I file my taxes?

The due date for filing income tax returns for individuals is July 31st, but you can also file a belated income tax return by December 31st, but you have to pay penalties for it. You can also submit your reason for the belated penalty, and the penalty may be removed on a case-by-case basis.

How can I file my taxes?

You have several options for filing your taxes-

• Your company can file your income taxes on your behalf and deduct it from your salary every month.
• You can independently file your income tax through the income tax portal.
• You can seek assistance from local individuals or online companies to file your taxes (they will charge a fixed fee).