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Financial Tools Utility

Income Tax Calculator (New Regime)

Quickly estimate your annual income tax liability based on India's latest New Tax Regime slabs (FY 2024-25). Check your Section 87A rebate and net take-home details.

Income & Deductions

₹
₹

Note: Under the New Tax Regime, a standard deduction of ₹50,000 is allowed for salaried individuals. Most other common deductions like 80C, HRA, and LTA are not applicable.

Net Taxable Income

₹0

Total Tax Payable

₹0

Includes 4% Health & Ed. Cess

Effective Tax Rate

0.00%

Understanding the New Income Tax Slabs in India

The Indian government has made the New Tax Regime the default option starting from FY 2023-24 (and continued into FY 2024-25). Designed to simplify tax calculations by removing complex exemptions, it offers lower tax rates across expanded slabs.

What is the Section 87A Rebate?

Under Section 87A of the Income Tax Act, taxpayers get a full tax rebate up to a certain income threshold. In the New Tax Regime for FY 2024-25, if your Net Taxable Income is ₹7,00,000 or less, you get a rebate of up to ₹25,000, bringing your total tax liability to absolutely zero.

However, it is a cliff—if your taxable income exceeds ₹7,00,000 (even by just ₹10), the rebate drops significantly or vanishes entirely (subject to marginal relief), and you are taxed according to the slab rates on your entire income above ₹3,00,000.

Why Use an Online Tax Calculator?

Calculating income tax manually involves mapping your income across multiple brackets, remembering to add the 4% cess, checking eligibility for the standard deduction, and applying the 87A rebate. Our dynamic calculator does all this instantly, giving you clear insights into your:

  • Net Taxable Income: The amount that is actually subject to tax slabs.
  • Total Tax Payable: The final amount you owe the government.
  • Effective Tax Rate: The true percentage of your total income that is going towards taxes.

Frequently Asked Questions (FAQs)

Does this calculator use the Old or New Tax Regime?

This calculator is specifically built for the New Tax Regime, which is the default regime for FY 2024-25 onwards. It features revised slabs and a higher rebate limit of ₹7 Lakhs.

Are deductions like 80C or HRA allowed in the New Tax Regime?

No, most traditional deductions like 80C, HRA, and LTA are not available under the New Tax Regime. However, the standard deduction of ₹50,000 is now applicable for salaried individuals and pensioners.

How is the Health and Education Cess applied?

The government mandates a 4% Health and Education Cess, which is calculated as 4% of your total income tax payable. It is added to your base calculated tax.

How to Use This Tool

  1. 1Enter your Gross Annual Salary or total yearly income.
  2. 2Adjust the Standard Deduction if applicable (defaults to ₹50,000 for salaried employees).
  3. 3The calculator will instantly show your Net Taxable Income by subtracting the deduction.
  4. 4View the dynamically calculated Total Tax Payable, which automatically includes the Section 87A rebate (zero tax if taxable income is ≤ ₹7,00,000) and 4% Health & Education Cess.
  5. 5Check your Effective Tax Rate to understand what percentage of your gross income goes to taxes.