Income Tax Calculator - Calculate your taxes for FY 2023-24 | Use Tax Calculator Online (2024)

What is Income Tax Calculator?

The Income tax calculator is an easy-to-use online tool that helps you estimate your taxes based on your income after the Union Budget is presented. We have updated our tool in line with the income tax changes proposed in the Union Budget 2023-24.(Read the highlights here)

How to use the Income tax calculator for FY 2023-24 (AY 2024-25)?

Following are the steps to use the tax calculator:

1. Choose the financial year for which you want your taxes to be calculated.

2. Select your age accordingly. Tax liability in India differs based on the age groups.

3. Click on 'Go to Next Step'

4. Enter your taxable salary i.e. salary after deducting various exemptions such as HRA, LTA and so on. (if you want to know your tax liability under the old tax slabs)

Or else, just enter your salary i.e salary without availing exemptions such as HRA, LTA, professional tax and so on. (if you want to know your tax liability under the new tax slabs)

5. Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self occupied property.

6. For Income from Digital Assets, enter the net income ( Sale consideration less Cost of Acquisition), such income is taxed at 30% Plus applicable surcharge and cess.

7. Click on 'Go to Next Step' again.

8. In case, you want to calculate your taxes under the old tax slabs,you will have to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.

9. Click on 'Calculate' to get your tax liability. You will also be able to see a comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).

Note: Whichever field is not applicable, you can enter "0".

You can even get your tax computation on your mail.

How to calculate income tax? (See example)

Income tax calculation for the Salaried

Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as telephone bills reimbursement, leave travel allowance. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA, by using this HRA Calculator.

On top of these exemptions, a standard deduction of Rs 40,000 was introduced in the budget 2018. This has been increased to Rs 50,000 in budget 2019 and further in Budget 2023, Standard deduction of 50,000 is available in case of new regime as well.

In case you opt for the new tax regime, these exemptions will not be available to you.

Let's understand income tax calculation under the current tax slabs and new tax slabs (optional) by way of an example. Neha receives a Basic Salary of Rs 1,00,000 per month. HRA of Rs 50,000. Special Allowance of Rs 21,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 40,000 and lives in Delhi.

Nature Amount Exemption/Deduction Taxable(Old regime) Taxable(New regime)
Basic Salary 12,00,000 - 12,00,000 12,00,000
HRA 6,00,000 3,60,000 2,40,000 6,00,000
Special Allowance 2,52,000 - 2,52,000 2,52,000
LTA 20,000 12,000 (bills submitted) 8,000 20,000
Standard Deduction - 50,000 50,000 50,000
Gross Total Income from Salary 16,50,000 20,22,000

To calculate Income tax, include income from all sources. Include:

  • Income from Salary (salary paid by your employer)
  • Income from house property (add any rental income, or include interest paid on home loan)
  • Income from capital gains (income from sale purchase of shares or house)
  • Income from business/profession (income from freelancing or a business or profession)
  • Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)

Neha has income from interest from savings account of Rs 8,000 and a fixed deposit interest income of Rs 12,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim under the old tax regime.

Nature Maximum Deduction Eligible investments/expenses Amount claimed by Neha
Section 80C Rs.1,50,000 PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer(Neha’s contribution) = Rs 1,00,000 *12% *12 = 1,44,000 Rs 1,50,000
Section 80D Rs 25,000 for self Rs 50,000 for parents Medical insurance premium Rs 12,000 Rs 12,000
Section 80TTA 10,000 Savings account interest 8,000 Rs. 8,000

Calculation of gross taxable income in India (Old regime)

Nature Amount Total
Income from Salary 16,50,000
Income from Other Sources 20,000
Gross Total Income 16,70,000
Deductions
80C 1,50,000
80D 12,000 -
80TTA 8,000 1,70,000
Gross Taxable Income 15,00,000
Total tax on above (including cess) 2,73,000

Calculation of gross taxable income in India (New regime)

Nature Amount Total
Income from Salary 20,22,000
Income from Other Sources 20,000
Gross Total Income 20,42,000
Total tax on above (including cess) 3,25,104

This is how income tax has been calculated for Neha under the new tax regime

Up to Rs 3,00,000 Exempt from tax 0
Rs 3,00,000 to Rs 6,00,000 5% (5% of Rs 6,00,000 less Rs 3,00,000) 15,000
Rs 6,00,000 to Rs 9,00,000 10% (10% of Rs 9,00,000 less Rs 6,00,000) 30,000
Rs 9,00,000 to Rs 12,00,000 15% (15% of Rs 12,00,000 less Rs 9,00,000) 45,000
Rs 12,00,000 to Rs 15,00,000 20% (20% of Rs 15,00,000 less Rs 12,00,000) 60,000
More than Rs Rs 15,00,000 30% (30% of Rs 20,42,000 less Rs 15,00,000) 1,62,600
Cess 4% of total tax (4% of Rs 15,000 + Rs 30,000+ Rs 45,000 + Rs 60,000 + Rs 1,62,600) 12,504
Total Income Tax Rs 15,000 + Rs 30,000+ Rs 45,000 + Rs 60,000 + Rs 1,62,600 + Rs 12,504 Rs 3,25,104

What are the exemptions/ deductions that are disallowed under the new tax regime?

Individual or HUF opting for taxation under the newly inserted section 115BAC of the Act shall not be entitled to the following exemptions/deductions:

(i) Leave travel concession as contained in clause (5) of section 10;

(ii) House rent allowance as contained in clause (13A) of section 10;

(iii) Some of the allowance as contained in clause (14) of section 10;

(iv) Allowances to MPs/MLAs as contained in clause (17) of section 10;

(v) Allowance for the income of minor as contained in clause (32) of section 10;

(vi) Exemption for SEZ unit contained in section 10AA;

(vii) Deduction for entertainment allowance and employment/professional tax as contained in section 16;

(viii) Interest under section 24 in respect of self-occupied or vacant property referred to in sub-section (2) of section 23. (Loss under the head income from house property for the rented house shall not be allowed to be set off under any other head and would be allowed tobe carried forward as per extant law);

(ix) Additional deprecation under clause (iia) of sub-section (1) of section 32;

(x) Deductions under section 32AD, 33AB, 33ABA;

(xi) Various deduction for donation for or expenditure on scientific research contained in sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35;

(xii) Deduction under section 35AD or section 35CCC;

(xiii) Deduction from family pension under clause (iia) of section 57;

(xiv) Any deduction under chapter VIA (like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). However, deduction under sub-section (2) of section 80CCD (employer contribution on account of the employee in notified pension scheme) and section 80JJAA (for new employment) can be claimed.

Following allowances shall be allowed as notified under section 10(14) of the Act to the Individual or HUF exercising option under the proposed section:

a) Transport Allowance granted to a divyang employee to meet the expenditure for the purpose of commuting between place of residence and place of duty

b) Conveyance Allowance granted to meet the expenditure on conveyance in performance of duties of an office;

c) Any Allowance granted to meet the cost of travel on tour or on transfer;

d) Daily Allowance to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

Frequently Asked Questions ( FAQ’s )

  • How much tax should I pay on my salary in New Regime?

    You will be required to pay a tax depending on the income slab you belong to.

    Income Tax Rates applicable for individuals under 60 years of age in case of new regime

    Income Slab Applicable Tax Rate
    Up to Rs 3 lakh Nil
    Above Rs 3 lakh and up to Rs 6 lakh 5%
    Above Rs 6 lakh and up to Rs 9 lakh 10%
    Above Rs 9 lakh and up to Rs 12 lakh 15%
    Above Rs 12 lakh and up to Rs 15 lakh 20%
    Above Rs 15 lakh 30%

    Suppose you have a taxable income of Rs 9 lakh, your tax will be calculated as follows:

    Income Slab Applicable Tax Rate Applicable Income Tax (in Rs)
    Up to Rs 3 lakh No tax 0 0
    Above Rs 3 lakh and up to Rs 6 lakh 5% Rs 3 lakhs 15,000
    Above Rs 6 lakh and up to Rs 9 lakh 10% Rs 3 lakhs 30,000
    Total Income Tax Payable 45,000

    Hence, you will be required to pay a tax of Rs 45,000 (excluding cess) on your taxable income i.e. Rs 9 lakhs.

  • What is the maximum non-taxable income limit?

    In the case of the old regime, The maximum limit of non-taxable income for an individual was set at Rs 2.5 lakh. However, you can also get a rebate of Rs 2,500 under section 87A if you have a total income of up to Rs 3.5 lacs for FY 2018-19. From FY 2019-20 onwards, the rebate has been increased to Rs 12,500 for an income up to Rs 5 lakh. So, that means an individual earning up to 5 lakh will not be required to pay any income tax from FY 2019-20 onwards. If you have tax saving investments under section 80C of up to Rs 1.5 lakh then you will not have to pay any taxes till Rs 6.5 lakhs

    In the budget 2023, In case of New Regime, The maximum limit of non-taxable income for an individual is set at Rs 3 lakh. However, you can also get a rebate of Rs 25000 under section 87A if you have a total income of up to Rs 7 lacs for FY 2023-24. So, that means an individual earning up to 7 lakh will not be required to pay any income tax from FY 2023-24 onwards. However, in the case of the old regime, the limit for rebate under section 87A is still 5 lakhs.

  • Does everyone have to file their income tax returns?

    If the income of an individual is below the basic exemption limit then he is not required to file income tax returns. Though those who have income less than Rs 2.5L(old regime) or 3L(New Regime) and want to claim an income tax refund can only claim the refund by filing an ITR. Otherwise, it is mandatory to file income tax returns in any other case.

  • Does the income tax calculator calculate for TDS?

    No, the income tax calculator does not compute the Tax Deducted at Source (TDS). However, it calculates your tax liability for the assessment year.

  • What are the details you need when you're e-filing your income tax returns?

    1. Basic information such as PAN, Aadhar Card details, and current address.

    2. All the bank account details held in a financial year.

    3. Income proofs like current salary details, income from investments (like FDs, savings bank account) etc.

    4. All the deductions claimed under Section 80 or Chapter VI-A.

    5. Tax payment details such as TDS and advance tax payments.

As a tax expert with in-depth knowledge and experience in the field, I can provide a comprehensive understanding of the concepts mentioned in the article about the Income Tax Calculator and related information. Let's break down the key components:

1. Income Tax Calculator Overview:

The Income Tax Calculator is an online tool designed to estimate taxes based on income after the presentation of the Union Budget. It is updated in line with income tax changes proposed in the Union Budget, such as the 2023-24 changes.

2. Steps to Use the Income Tax Calculator:

The article outlines the steps to use the calculator for the financial year 2023-24 (assessment year 2024-25). These steps include selecting the financial year, age group, entering taxable salary, and other details like interest income, rental income, and digital assets income.

3. Income Tax Calculation for Salaried Individuals:

The calculation involves determining gross total income from salary, exemptions (like HRA, special allowance, and standard deduction), and deductions under various sections (80C, 80D, 80TTA). It further explains how to calculate taxable income under both old and new tax slabs.

4. Example Calculation for Neha:

A detailed example illustrates the income tax calculation for Neha, considering her salary components, exemptions, and deductions under the old and new tax regimes.

5. Exemptions/Deductions Disallowed under the New Tax Regime:

The article lists exemptions and deductions disallowed under the newly inserted section 115BAC. This includes various allowances and deductions under different sections like 80C, 80D, and more.

6. FAQ Section:

The Frequently Asked Questions cover topics such as tax rates, non-taxable income limits, filing requirements, and details needed for e-filing income tax returns.

7. Tax Slabs and Rates:

The article provides tax slabs and rates for individuals under 60 years of age in the new tax regime, along with an example calculation.

8. Maximum Non-Taxable Income Limit:

It explains the maximum non-taxable income limit in the old and new regimes, including rebates under section 87A.

9. E-filing Requirements:

Details needed for e-filing income tax returns are outlined, including basic information, bank account details, income proofs, deductions claimed, and tax payment details.

In summary, the article comprehensively covers the Income Tax Calculator, tax calculation for salaried individuals, exemptions, deductions, FAQ, and e-filing requirements, providing a valuable resource for individuals navigating the income tax landscape.

Income Tax Calculator - Calculate your taxes for FY 2023-24 | Use Tax Calculator Online (2024)

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