Income Tax Calculator
Basic Details
Investment Details
Male
Age
Below 60 years
61-80 years
80 & above
The investments u/s 80C/80CCC that qualify for income tax deduction are:
✓ Term Insurance Policies
✓ Unit Linked Insurance Plans
✓ Traditional Savings/Endowment Insurance Policies
✓ Retirement Insurance Plans
✓ 5 year Fixed Deposits
✓ Public Provident Fund
✓ Pension Funds
✓ Unit Linked Insurance Plans
If you have invested in NPS, you can get additional deduction upto ₹50,000 u/s 80CCD(1B) which will be over and above deduction of ₹1,50,000 u/s 80C
The premiums paid towards health insurance policies taken for self, spouse, children or parents is eligible for deduction u/s 80D of Income Tax Act 1961:
✓ The maximum limit for deduction for health insurance policy premium taken for self, spouse or children is ₹ 25,000 (The maximum limit is increased to ₹ 50,000 if the age of the person insured is above 60 years.Additional deduction up to ₹ 25,000 is allowed on health insurance premium paid towards covering parents (The maximum limit is increased to ₹ 50,000 if the age of the person insured is above 60 years. So, if person buys medical insurance for, self and parents who are senior citizen he/she will be allowed deduction up to ₹ 75,000 (Self 25,000 + Parents 50,000).
✓ If person who is senior citizen buys medical insurance for self and parents who are senior citizen he/she will be allowed deduction up to ₹ 1,00,000 (Self 50,000 + Parents 50,000).
Interest paid on home loan is eligible for deduction
Interest on Home Loan u/s 24
This deduction is allowed on interest earned:
✓ From a savings account with a bank
✓ From a savings account with a co-operative society carrying on the business of banking
✓ From a savings account with a post office
This deduction is NOT allowed on interest earned on:
✓ Interest from fixed deposits
✓ Interest from recurring deposits
✓ Any other time deposits
Investments Summary
Old Tax Regime
New Tax Regime
Total Income
₹ 0
Total Investment
₹ 0
Standard Deduction
₹ 0
HRA Exemption
₹ 0
Taxable Income
₹ 0
Tax Payable
₹ 0
Total Income
₹ 0
Total Investment
₹ 0
Taxable Income
₹ 0
Tax Payable
₹ 0
Income Tax Calculator: Get Tax as per New & Old Regime Online
Income tax calculator helps you gauge the impact of an old and new regime of tax liability on your income. It serves you with a proper assessment on which regime to select and get most of the benefit.
Want to know more about its utility?
Keep reading!
What Is an Income Tax Calculator?
An income tax calculator is an online tool of precision that lets you calculate tax liability based on your data. It is free, easy to use and provides an error-free result. However, any incorrect data can impact your calculation. Therefore, you should know the details discussed here before using it.
Income Tax Slabs Under New and Old Regimes
In order to understand the income tax calculation process, you first need to know the rates applicable for different income limits under the new and the old regime.
Here is a table comprising the income tax rates as per the old regime -
|
Income Slab |
Tax Deduction |
|
₹ 0 - ₹ 2,50,000 |
0% |
|
₹ 2,50,000 to ₹ 5,00,000 |
5% |
|
₹ 5,00,000 to ₹ 10,00,000 |
20% |
|
More than ₹ 10,00,000 |
30% |
Conversely, the following table lists the income tax rates applicable under the new regime. have a look -
|
Income Slab |
Tax Deduction |
|
₹ 0 - ₹ 2,50,000 |
0 |
|
₹ 2,50,000 to ₹ 5,00,000 |
5% |
|
₹ 5,00,000 to ₹ 7,50,000 |
10% |
|
₹ 7,50,000 to ₹ 10,00,000 |
15% |
|
₹ 10,00,000 to ₹ 12,50,000 |
20% |
|
₹ 12,50,000 to ₹ 15,00,000 |
25% |
|
More than ₹ 15,00,000 |
30% |
|
Cess |
4% of total tax |
Your income tax liability will be calculated depending on the regime you choose.
Now that you are aware of the applicable rates for respective income slabs under both regimes, let’s have a look at the calculation formula.
Income Tax Calculation Formula for New and Old Regimes
Note that irrespective of the chosen regime, the basic income tax calculation formula remains the same.
Here is the formula used by an online income tax calculator -
Total income tax = {Total income - (exempted limit + all applicable deductions + TDS)} x applicable tax rate as per income slab + cess
How to Calculate Total Income Tax Liability?
Using an income tax calculator, you can calculate the tax liability based on the following points -
1. Annual income coming from salary and other profits.
2. Earning from other sources like savings, investments, rent, etc.
3. Components of income eligible for exemptions.
4. Transport allowance and house rents.
5. Tax already paid through TDS.
Note that you need to pay tax on your gross taxable income, as is evident from the mentioned formula. This is your total income minus all applicable exemptions and already paid taxes.
Let's look at an illustration to understand this.
Following are your salary components and respective exemptions apply to them.
|
Salary Components and Amounts (in ₹) |
Exemption Under Old Regime (in ₹) |
Exemption Under New Regime (in ₹) |
|
Basic Salary - 12,00,000 |
- |
- |
|
HRA - 6,00,000 |
3,60,000 |
- |
|
Special Allowance - 2,52,000 |
- |
- |
|
Leave Travelling Allowance - 20000 |
12,000 (on submitting bills) |
- |
|
Standard Deduction |
50,0000 |
- |
|
Gross Taxable Income |
16,50,000 |
20,72,000 |
Income Tax Liability Under Old Tax Regime
Calculation of income tax liability with an income tax calculator under the old regime is shown below -
|
Components |
Amount (₹) |
Total (₹) |
|
Salary |
16,50,000 |
- |
|
Earning from Different Sources |
20000 |
- |
|
Total Income |
- |
16,70,000 |
|
Leave Travelling Allowance - 20000 |
12,000 (on submitting bills) |
- |
|
Deductions |
- |
- |
|
Under Section 80C |
1,50,000 |
- |
|
Under Section 80D |
12,000 |
- |
|
Under Section 80TTA |
8,000 |
1,70,000 |
|
Gross Taxable Income |
- |
15,00,000 |
|
Total Tax (including cess) |
- |
2,73,000 |
Income Tax Liability Under New Tax Regime
Calculation of tax liability by income tax calculator new regime is shown here -
|
Components |
Amount (₹) |
Total (₹) |
|
Salary |
20,72,000 |
- |
|
Earning from Different Sources |
20000 |
- |
|
Gross Total Income |
- |
20,92,000 |
|
Total Tax (including cess) |
- |
3,79,704 |
What Are the Different Components Involved in the Old & New Regimes?
Different components considered under the tax regime are necessary to know how to calculate income tax.
At first, you have to calculate income from all sources, including -
1. Salary.
2. House property (rental income and interest paid for a home loan).
3. Capital gains or income from the sale or purchase of the house or any share of it.
4. Business or any professional service.
5.Savings including fixed deposits, PPF, etc.
Next, you need to consider the following deductions according to your chosen regime -
|
Deductions Under Old Regime |
Deductions Under New Regime |
|
Section 80C – Up to ₹1.5 lakh on investments in PPF, LIC, fixed deposits, etc. |
Not applicable |
|
Section 80D – Up to ₹50,000 on the premium of medical insurance for self, spouse, children, and parents. |
Not applicable |
|
Section 80TTA – Up to ₹10,000 per year on income from interest from the savings account. |
Not applicable |
What Are the Benefits of Using an Income Tax Calculator?
The benefits of an income tax calculator are as follows -
- Planning your tax liability
- Precise, easy and comprehensive
- Saving time
- Getting right information
- Free tool
- No login or credentials are required
- Shows details about the calculation
- Can select any option among new and old regime
Implementing the new and old regimes in the Union Budget of 2020 created a lot of confusion among taxpayers. Therefore, individuals must calculate their tax liability based on the regime they can benefit most from.
An income tax calculator is very helpful in resolving this issue by demonstrating a specific taxable amount to you based on the data provided.
