Calculate your income tax liability for FY 2023-24 (AY 2024-25) under both old and new tax regimes with deductions, exemptions, and rebates.
| Parameter | Old Regime | New Regime |
|---|
Our Income Tax Calculator helps you estimate your tax liability for the financial year 2023-24 under both old and new tax regimes. Below are explanations of key concepts and factors to consider when calculating your taxes.
The government introduced a new tax regime with lower rates but fewer deductions. Key differences:
| Feature | Old Regime | New Regime |
|---|---|---|
| Tax Rates | Higher | Lower |
| Deductions | All available (80C, 80D, HRA, etc.) | Very limited |
| Standard Deduction | ₹50,000 | ₹50,000 |
| Rebate (Section 87A) | ₹12,500 (income ≤ ₹5L) | ₹25,000 (income ≤ ₹7L) |
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 - ₹6,00,000 | 5% |
| ₹6,00,001 - ₹9,00,000 | 10% |
| ₹9,00,001 - ₹12,00,000 | 15% |
| ₹12,00,001 - ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% |
| ₹5,00,001 - ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Q: Which tax regime should I choose?
A: The new regime benefits those with fewer deductions. If you have significant investments (like PPF, insurance) or HRA, the old regime may be better.
Q: Can I switch between regimes every year?
A: Yes, you can choose a different regime each year based on what's beneficial.
Q: What is cess in income tax?
A: A 4% health and education cess is added to your tax liability.
Q: Is LTA (Leave Travel Allowance) taxable?
A: LTA is tax-exempt under old regime if you submit bills for actual travel. Not available in new regime.
Q: How is tax calculated on capital gains?
A: Short-term gains are taxed as per income slab. Long-term gains have special rates (10% or 20% with indexation).
