Income Tax Calculator

Taxable income = Gross income − Standard deduction − Eligible deductions

Slab tax = Sum of (Income in each slab × Slab rate)

Total tax = (Slab tax − 87A rebate) + Surcharge + 4% cess

New regime slabs: nil up to ₹4,00,000, then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000 and 30% above that. The standard deduction is ₹75,000 for salary and pension income.

Old regime slabs: nil up to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above, with a ₹50,000 standard deduction and deductions such as 80C, 80D and HRA.

A salaried person earning ₹15,00,000 under the new regime deducts ₹75,000 to reach ₹14,25,000 taxable income. The slabs give ₹20,000 at 5%, ₹40,000 at 10% and ₹33,750 at 15% — ₹93,750 of tax, plus 4% cess, for a total of about ₹97,500, or roughly ₹8,125 of TDS a month.

Income tax in India is a slab tax, not a flat rate. Only the portion of income that falls inside a slab is taxed at that slab's rate, so a salary of ₹15 lakh is never taxed at 30% end to end. That is why the effective rate this calculator shows is always well below the highest slab you touch.

Two regimes now run side by side. The new regime, which is the default from FY 2023-24 onwards, offers wider slabs and lower rates but removes almost every deduction — no 80C, no 80D, no HRA exemption. The old regime keeps the narrower ₹2.5 lakh, ₹5 lakh and ₹10 lakh slabs with 5%, 20% and 30% rates, but lets you subtract provident fund and insurance premiums under 80C, health insurance under 80D, HRA exemption and home loan interest.

After the slab tax comes the section 87A rebate, which wipes out tax entirely for smaller incomes — up to ₹60,000 of rebate when taxable income is ₹12,00,000 or less under the new regime, and ₹12,500 when it is ₹5,00,000 or less under the old one. Surcharge applies above ₹50 lakh, and health and education cess at 4% is added on top of everything at the end.

For salaried employees this tax is not paid in one go: the employer divides the annual liability across twelve months as TDS based on the declaration you file in April. Declaring investments late means heavy deduction in the early months and waiting for a refund after filing.