Free Income Tax Calculator FY 2024-25 — New vs Old Regime

Income Tax Calculator

FY 2024–25 (AY 2025–26) • New vs Old Regime

Annual Gross Salary / Income

₹

Include all income before deductions

✓ Standard Deduction: ₹75,000 automatically applied (Budget 2024)

Total Annual Tax

₹23,400

Monthly TDS: ₹1,950

Taxable Income

₹7,25,000

Effective Rate

2.93%

Income Tax

₹22,500

4% Health Cess

₹900

Slab	Rate	Tax
₹0 – ₹3,00,000	0%	₹0
₹3,00,000 – ₹7,00,000	5%	₹20,000
₹7,00,000 – ₹10,00,000	10%	₹2,500

Income Tax Slabs FY 2024-25 (New Regime)

Income Range	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

Budget 2024 Updates: Standard deduction increased from ₹50,000 to ₹75,000 under the new regime. Tax-free income limit effectively ₹7.75 lakh (₹7L income + ₹75K standard deduction). Family pension standard deduction increased to ₹25,000.

How to Save Maximum Income Tax Legally

→ Invest ₹1.5L in 80C (ELSS, PPF, EPF) — saves up to ₹46,800 tax
→ Pay health insurance premium — save up to ₹7,800 under 80D
→ Home loan interest — claim up to ₹2L deduction under Section 24
→ NPS contribution — additional ₹50,000 deduction under 80CCD(1B)
→ HRA exemption if you pay rent — can save significant tax

How to Use This Tool

Enter Annual Gross Income

Enter your total annual salary or income from all sources before any deductions.

Choose Tax Regime

Select New Regime (beneficial for most salaried employees) or Old Regime (if you have high deductions).

Add Deductions (Old Regime)

If choosing old regime, enter your 80C investments, health insurance premium, and HRA exemption.

View Tax Calculation

See your taxable income, slab-wise tax breakup, 87A rebate, health cess, and total annual tax.

Compare Regimes

Switch between regimes to compare and choose the one with lower tax liability.

Frequently Asked Questions

The new tax regime (default from FY 2023-24) has lower tax rates but does not allow most deductions like 80C, 80D, or HRA. The old regime has higher rates but allows deductions up to ₹5 lakh+, making it beneficial for those with significant investments and home loans. Budget 2024 enhanced the new regime with ₹75,000 standard deduction and increased tax-free limit to ₹7 lakh under 87A rebate.

Under the new tax regime: income up to ₹3 lakh is exempt, and with Section 87A rebate, income up to ₹7 lakh has zero tax. Under the old regime: income up to ₹2.5 lakh is exempt (₹3L for senior citizens, ₹5L for super senior), and with 87A rebate, up to ₹5 lakh has zero tax.

Section 87A provides a tax rebate to individual taxpayers. Under the new regime (FY 2024-25), if your net taxable income is ₹7 lakh or less, you get a rebate equal to the tax amount — effectively paying zero tax. Under the old regime, this limit is ₹5 lakh.

Section 80C allows deductions up to ₹1.5 lakh for: EPF/PPF contributions, ELSS (tax-saving mutual funds), LIC premium, 5-year bank FD, NSC, home loan principal repayment, tuition fees for children, and ULIP premiums.

Your employer estimates your annual tax liability and deducts TDS (Tax Deducted at Source) equally every month. Monthly TDS = Annual Tax / 12. You can reduce TDS by submitting investment proofs to your employer (Form 12BB).

The new regime is generally better if your deductions are less than ₹3.75 lakh. If you have a home loan, EPF, 80C investments (₹1.5L), 80D (₹25K), and HRA — old regime may save more. Use our calculator to compare both scenarios for your specific income.

Related Free Tools