Income Tax Calculator 2024-25

An Income Tax Calculator is an online tool that helps you calculate your income tax based on your income, deductions, and exemptions.

In this blog post, we will explore key aspects of income tax and most importantly, we will introduce an Income Tax Calculator tool to help you calculate your taxes accurately for the year 2024-25(Assessment Year 2025-26).

This tool considers all relevant income components. It also factors in various exemptions and deductions. Just enter your details. The Income Tax Calculator will provide an instant estimate.

Key Components of Your Salary Income

Your gross salary is not just basic pay. It includes many allowances like Dearness Allowance (DA), Travel Allowance (TA), Special Allowance, and House Rent Allowance (HRA). All these form your gross salary for tax purposes.

You should mention each part correctly. Our Income Tax Calculator starts with your gross salary. It then allows you to account for specific allowances separately. This ensures a precise starting point for your tax calculation.

Maximizing Savings with Chapter VI-A Deductions

Chapter VI-A offers many deductions. These reduce your taxable income further.

• Section 80C: This is very popular. It covers investments like EPF, PPF, ELSS, and life insurance premiums. The maximum deduction here is ₹1.5 lakh.
• Section 80CCD(1) & 80CCD(1B): These apply to NPS contributions. 80CCD(1B) provides an additional ₹50,000 deduction. This is over and above the ₹1.5 lakh limit of Section 80C.
• Section 80CCD(2): This covers employer’s contribution to NPS.
• Section 80D: This deduction is for medical insurance premiums. It covers yourself, your family, and parents. Utilizing these deductions can significantly lower your tax bill. Our Income Tax Calculator lets you input these amounts. It then calculates the eligible deductions.

Old Tax Regime vs. New Tax Regime: Which to Choose?

The government introduced the New Tax Regime. It offers lower tax rates. However, it requires giving up most exemptions and deductions. The Old Tax Regime allows claiming various exemptions and deductions. Choosing between them depends on your financial situation.

Our Income Tax Calculator helps you compare. You can see your tax liability under both regimes. It helps you make an informed decision. For Central Government Employees, understanding the implications for NPS contributions is key in this choice. The Income Tax Calculator clearly indicates which regime the calculation is based on.

Income Tax Slabs

Income Tax Slabs for Individuals Less Than 60 Years of Age (AY 2025-26)

Old Tax Regime

New Tax Regime u/s 115BAC

Income Tax Slabs for Individuals 60 Years or More but Less Than 80 Years of Age (AY 2025-26)

Old Tax Regime

New Tax Regime u/s 115BAC

Income Tax Slabs for Individuals 80 Years of Age or More (AY 2025-26)

Old Tax Regime

New Tax Regime u/s 115BAC

Note on Surcharge: The enhanced surcharge of 25% & 37% is not levied from income chargeable to tax under sections 111A, 112, 112A, and Dividend Income. The maximum rate of surcharge on tax payable on such incomes is 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA, and 115E.

Rebate u/s 87A for Resident Individuals:

• Old Tax Regime: Tax rebate up to ₹12,500 is applicable if total income does not exceed ₹5,00,000.
• New Tax Regime: Tax rebate up to ₹20,000 is applicable if total income does not exceed ₹7,00,000.

Health & Education Cess: A 4% Health & Education Cess is to be paid on the amount of income tax plus Surcharge (if any) in both regimes.

Related posts:

Inspector and Tax Assistant Job profile in CBDT and CBIC Procedures After Getting Selected for a Government Job New Rules for Tax Assistant Promotion in CBIC and CBDT SSC CGL Executive Assistant Salary 2025: Job Profile, Promotion & Pay Scale