Income Tax Calculator

Income tax in India is governed by the Income Tax Act and collected by the Central Board of Direct Taxes (CBDT). The tax system uses a progressive structure where income is divided into slabs, with each slab taxed at a different rate. Higher income portions are taxed at higher rates. Since FY 2020-21, taxpayers can choose between the Old Tax Regime and the New Tax Regime. The Old Regime allows various deductions under sections like 80C (investments up to 1.5 lakh), 80D (health insurance), HRA exemption, and standard deduction (50,000). The New Regime offers lower slab rates but eliminates most deductions and exemptions. The choice between regimes depends on your individual circumstances. If your eligible deductions exceed the tax savings from the new regime's lower rates, the old regime may be better. This calculator helps you compare both options and make an informed decision. Understanding your tax liability helps with financial planning, investments, and avoiding surprises at year-end. Use this calculator for estimation and consult a tax professional for specific advice.