Calculate Your Income Tax — FY 2024-25
Enter your gross income and deductions to get your exact tax liability under New or Old regime
Tax Summary
New vs Old Regime Comparison
Slab-wise Tax Breakdown
Full Tax Details
What Is Income Tax in India?
Understanding how India's personal income tax system works — slabs, regimes and the assessment year
Income tax in India is a direct tax levied by the Central Government on individuals, HUFs and companies based on their annual income. It is governed by the Income Tax Act, 1961 and administered by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance. Tax is assessed every year for the previous financial year — so FY 2024-25 (April 2024 to March 2025) is assessed in AY 2025-26.
India uses a progressive slab system — income is divided into bands and each band is taxed at a progressively higher rate. You do not pay the highest applicable rate on your entire income; only the portion of income that falls within each slab is taxed at that slab's rate.
A 4% Health & Education Cess is added on top of the computed tax liability for all taxpayers. Individuals with income above ₹50 lakh also pay a surcharge (10–37% depending on income level), making effective rates significantly higher for very high earners.
Income Tax Slabs FY 2024-25
New Regime and Old Regime slab rates side by side — for individuals below 60 years of age
| Income Slab | New Regime Rate | Old Regime Rate | Note |
|---|---|---|---|
| Up to ₹3,00,000 | 0% | 0% | Nil for both regimes |
| ₹3,00,001 – ₹7,00,000 | 5% | 5% (up to ₹5L) / 20% (₹5–7L) | New regime extended basic exemption |
| ₹7,00,001 – ₹10,00,000 | 10% | 20% | New regime is lower here |
| ₹10,00,001 – ₹12,00,000 | 15% | 30% | Old regime doubles at this slab |
| ₹12,00,001 – ₹15,00,000 | 20% | 30% | — |
| Above ₹15,00,000 | 30% | 30% | Same top rate; deductions decide winner |
| Rebate u/s 87A Key | Up to ₹25,000 (income ≤ ₹7L) | Up to ₹12,500 (income ≤ ₹5L) | Effectively zero tax below threshold |
| Standard Deduction | ₹75,000 (from FY 2024-25) | ₹50,000 | Salaried individuals only |
Zero Tax Threshold
Under the New Regime, income up to ₹7 lakh (₹7.75L for salaried with standard deduction) effectively pays zero tax due to the 87A rebate.
₹7L – NewStandard Deduction
Salaried taxpayers get ₹75,000 standard deduction under the New Regime and ₹50,000 under Old Regime — without any documentation needed.
₹75K / ₹50KSection 80C Limit
Under the Old Regime, up to ₹1,50,000 can be deducted for PPF, ELSS, EPF, life insurance premium, home loan principal and tuition fees.
₹1.5L – OldHealth Insurance (80D)
₹25,000 deduction for self + family; additional ₹25,000 (₹50,000 for senior citizens) for parents' health insurance — only in Old Regime.
Up to ₹75KHome Loan Benefits
Old Regime allows ₹2 lakh deduction on home loan interest (Section 24B) for self-occupied property. Not available under New Regime.
₹2L – OldWhich Regime Is Better?
Use this calculator! Generally: income under ₹7L → New Regime. Income above ₹15L with full deductions (80C+HRA+80D) → Old Regime may win.
Compare BothHow Income Tax Is Calculated
Step-by-step from gross income to final tax payable — with surcharge and cess
- 1
Calculate Gross Total Income
Add all income from all five heads: Salary, House Property, Capital Gains, Business/Profession, and Other Sources (interest, dividends etc.). Gross Total Income = sum of all these before any deductions under Chapter VI-A.
- 2
Apply Standard Deduction (Salaried)
Salaried employees get ₹75,000 (New Regime) or ₹50,000 (Old Regime) as a flat standard deduction — no receipts needed. This reduces your gross salary directly.
- 3
Deduct Chapter VI-A (Old Regime Only)
Under the Old Regime, claim eligible deductions: 80C (max ₹1.5L), 80D (health insurance), HRA exemption, 80E (education loan interest), 80G (donations), 24B (home loan interest) etc. These reduce your Taxable Income.
- 4
Apply Slab Rates to Taxable Income
Tax is computed progressively — each slab taxes only the income that falls within it. E.g., for ₹12L income under New Regime: first ₹3L = ₹0; next ₹4L (₹3–7L) = ₹20,000; next ₹3L (₹7–10L) = ₹30,000; last ₹2L (₹10–12L) = ₹30,000. Total = ₹80,000.
- 5
Apply Rebate u/s 87A
If taxable income is ≤ ₹7 lakh (New Regime) or ≤ ₹5 lakh (Old Regime), the full tax computed is waived via Section 87A rebate — making effective tax zero at these income levels.
- 6
Add Surcharge + Health & Education Cess
Surcharge applies at 10% (₹50L–₹1Cr), 15% (₹1–2Cr), 25% (₹2–5Cr) and 37% (above ₹5Cr — capped at 25% for New Regime). Then add 4% Health & Education Cess on the total (tax + surcharge) to get your final tax payable.
Taxable Income = Gross Income − Standard Deduction − Deductions (Old)
Tax = Progressive slab rates on Taxable Income
Tax after Rebate = Tax − 87A Rebate (if applicable)
Total Tax = (Tax after Rebate + Surcharge) × 1.04 ← 4% CessSmart Tax Saving Strategies for FY 2024-25
Legal ways to minimise your tax burden and maximise your in-hand income
Maximise Section 80C — ₹1.5 Lakh
The most popular deduction. Eligible investments: PPF (Public Provident Fund), ELSS (Equity Linked Savings Scheme), EPF contributions, life insurance premium, NSC, 5-year tax-saver FD, home loan principal repayment, and tuition fees for children.
Claim Health Insurance Premium (80D)
Deduct up to ₹25,000 for self + family premiums, and an additional ₹25,000 (₹50,000 if parents are senior citizens) for parents' health insurance. Preventive health check-ups up to ₹5,000 count within these limits.
Home Loan Interest — Section 24B
Deduct up to ₹2 lakh on interest paid on a home loan for a self-occupied property under the Old Regime. For let-out property, the full interest is deductible (subject to overall loss set-off limits).
NPS Contribution — Section 80CCD(1B)
An additional ₹50,000 deduction (over and above the ₹1.5L 80C limit) for contributions to the National Pension System. This exclusive deduction can bring your total Chapter VI-A deductions to ₹2 lakh+.
HRA Exemption (Old Regime)
If you live in a rented house, you can claim HRA exemption — the minimum of: actual HRA received, 50% of salary (metro) / 40% (non-metro), or actual rent minus 10% of salary. Submit rent receipts to your employer.
Section 80G — Charitable Donations
Donations to approved charities and relief funds qualify for 50% or 100% deduction under Section 80G, subject to limits. PM Relief Fund, National Defence Fund and certain approved institutions give 100% deduction.
ELSS Over Fixed Deposits
ELSS (Equity Linked Savings Scheme) has the shortest lock-in period (3 years) among all 80C instruments, offers market-linked returns (historically 12-15% p.a.) and qualifies for 80C. Superior to tax-saver FDs on all parameters except guaranteed returns.
Compare Both Regimes Every Year
The better regime changes as your income and deductions change. A salary increment, new home loan, or stopping an insurance policy can shift which regime saves more tax. Recalculate every April before declaring your preferred regime to your employer.
Frequently Asked Questions
Common questions about income tax slabs, regimes, deductions and filing for FY 2024-25