Income Tax Calculator 2024-25

Key differences between tax regimes:

• New regime has lower tax rates but fewer deductions
• Old regime allows multiple tax-saving deductions
• New regime is default from FY 2024-25
• Old regime better for those with many investments
• Choice available annually for salaried individuals

Popular deductions under old regime:

• Section 80C - Up to ₹1.5 lakh (PPF, ELSS, etc.)
• Section 80D - Health Insurance Premium
• HRA Exemption for rent paid
• Standard Deduction of ₹50,000
• NPS Additional Deduction under 80CCD(1B)

Income tax calculation process:

• Start with gross total income
• Subtract applicable deductions
• Apply tax slab rates on remaining amount
• Add surcharge if applicable
• Add health & education cess (4%)

Understanding tax rebate:

• Available for income up to ₹7 lakh
• Maximum rebate of ₹25,000
• Applicable in both old and new regime
• Calculated before education cess
• Helps reduce tax burden for lower income groups

New regime is beneficial when:

• You have limited tax-saving investments
• Your total deductions are below ₹3 lakh
• You prefer higher take-home salary
• You're a new employee starting career
• You don't claim HRA or housing loan benefits

Popular tax-saving investments:

• PPF (Public Provident Fund)
• ELSS (Equity Linked Saving Scheme)
• Tax-saving Fixed Deposits
• National Pension System (NPS)
• Life Insurance Premium

Surcharge rates based on income:

• 10% for income between ₹50L to ₹1Cr
• 15% for income between ₹1Cr to ₹2Cr
• 25% for income between ₹2Cr to ₹5Cr
• 37% for income above ₹5Cr
• Marginal relief available at threshold limits

Important tax-related dates:

• Advance Tax: Jun 15, Sep 15, Dec 15, Mar 15
• TDS Payment: 7th of next month
• ITR Filing: Usually July 31st
• Tax Audit Cases: October 31st
• Belated Return: December 31st