Income Tax Calculator

An income tax calculator is a digital tool designed to help taxpayers estimate their income tax liabilities based on their earnings, deductions, and prevailing tax laws. It simplifies the complicated calculations involved in determining how much tax you need to pay, considering both the new and old tax regimes.
By inputting basic details such as your income, deductions, and exemptions, you can quickly get an accurate estimate of your tax obligations.

Our Income Tax Calculator is designed for simplicity and ease of use. Follow these steps to calculate your income tax:

1. Select the Financial Year: Choose the relevant financial year for your tax calculation (e.g., FY 2023-24 or FY 2024-25).

2. Choose Your Assessment Year: Select the corresponding assessment year (e.g., AY 2024-25 or AY 2025-26).

3. Enter Your Income Details: Provide your income from various sources, including salary, business income, capital gains, house property income, and other sources. Be sure to include all relevant income details for an accurate calculation.

4. Claim Your Deductions: Input the deductions you're eligible for under different sections of the Income Tax Act. Our calculator will guide you through the available deductions and help you maximise your tax savings.

5. Calculate Your Tax: Click the ‘Calculate’ button, and our calculator will instantly display your estimated income tax liability, along with a breakdown of your income, deductions, and applicable tax rates.

While KreditBee’s income tax calculator automates the process, understanding the underlying steps is required:
Step 1: Determine Your Gross Taxable Income
Start by calculating your net salary. Subtract deductions like House Rent Allowance (HRA), Leave Travel Allowance (LTA), and the standard deduction from your gross salary. Then, add income from other sources, such as interest, capital gains, or rental income, to get your gross taxable income.
Gross Taxable Income = Gross Salary – HRA – LTA – Standard Deduction + Income from Other Sources
Step 2: Calculate Tax Benefits
If you’ve invested in tax-saving options or are eligible for exemptions, calculate the total benefits. These might include investments under section 80C (like Equity Linked Savings Scheme or Public Provident Fund), health insurance premiums, savings account interest, and home loan interest.
Total Tax Benefits = Investments under 80C + Health Insurance Premium + Savings Account Interest + Home Loan Interest + Other Deductions
Step 3: Find Your Net Taxable Income
Subtract the total tax benefits from your gross taxable income to get your net taxable income.
Net Taxable Income = Gross Taxable Income – Total Tax Benefits
Step 4: Calculate Your Total Tax Liability
In the old tax regime, if your taxable income is less than ₹5 lakhs, you get a rebate of ₹12,500 under section 87A. For income above ₹5 lakhs, the tax rate applies as per the slabs.
In the new tax regime, deductions like HRA and LTA are taxable, and tax benefits on investments aren't available. However, if your taxable income is less than ₹7 lakhs, you can claim a rebate of ₹20,000 under section 87A.
Example: Old vs New Tax Regime
Consider Nisha, who works in Delhi. She earns a basic monthly salary of ₹1 lakh. Her employer provides an HRA of ₹40,000, a special monthly allowance of ₹15,000, and an annual LTA of ₹20,000. She pays ₹30,000 in monthly rent and has an additional income of ₹80,000 from capital gains and interest. Here's a comparison of her tax liability under the old and new tax regimes:

KreditBee's online retirement calculator is very simple to use. Follow these easy steps to get accurate results.

1. Enter Personal Details: Input your current age and the age at which you plan to retire.

2. Input Savings Information: Provide details about your current savings and monthly contributions.

3. Set the Rate of Return: Enter the expected annual return rate on your investments.

4. Calculate and Review: The calculator will generate a projection of your future retirement savings, showing how much you'll have accumulated by your retirement age.

Tax Deductions (Old Regime)

• ₹1,50,000 under Section 80C.

• ₹50,000 in NPS contributions.

• ₹25,000 in health insurance premiums under Section 80D.

• ₹5,000 under Section 80TTA for interest earned on a savings account.

Net Taxable Income

• Old Regime: ₹12,05,000
• New Regime: ₹19,10,000

Old Tax Regime

• Gross Taxable Income: ₹15,35,000
• Deductions: ₹3,30,000
• Net Taxable Income: ₹12,05,000

Tax calculation under the old tax regime Tax calculation under the new tax regime From this example, it's clear that Nisha’s tax liability is higher under the new regime.

When you invest in savings schemes or have certain expenses, you can use these to lower your taxable income before calculating your taxes. This helps in reducing your overall tax liability.
Old Tax Regime
Below are some common deductions and exemptions under the old tax regime:

1. A standard deduction of ₹50,000 is available for salaried individuals.

2. LTA (Leave Travel Allowance) exemption for travel expenses.

3. Individuals and HUFs (Hindu Undivided Families) can claim up to ₹1.5 lakh under Section 80C.

4. Medical expenses qualify for a deduction under Section 80D.

5. Interest on a self-occupied home loan can be deducted up to ₹2 lakh.

6. Higher education loan interest is deductible under Section 80E.

7. Charitable donations are eligible for deduction under Section 80G.

8. You can claim a tax deduction of up to ₹10,000 on interest earned from a savings account.

New Tax Regime
Here are the deductions available under the new tax regime for 2024:

1. Deduction on interest paid on a home loan for a rented-out property under Section 24(b).

2. Employer contributions to NPS (National Pension Scheme) under Section 80CCD (1B) are deductible up to 14% of salary.

3. Maturity proceeds and interest from PPF (Public Provident Fund) and Sukanya Samriddhi Yojana remain tax-free. The new regime only removes deductions for investments in these schemes.

4. Transport allowance for disabled individuals.

5. Conveyance allowance for work-related travel expenses.

6. Allowances for covering tour or transfer costs.

7. Daily allowances to cover routine expenses incurred due to being away from the usual place of work.

8. Deduction for expenses related to additional employees under Section 80JJA.

9. Salaried individuals can claim a standard deduction of ₹75,000 under the new tax regime. Previously, the standard deduction was ₹50,000 under the old tax regime.

10. Section 57(iia) allows deductions for income from family pensions, with a limit of one-third of the amount or ₹25,000, whichever is less.

11. Contributions to the Agniveer Corpus Fund are deductible under Section 80 CCH.

The income tax slabs in India have been updated for the financial year 2024-25 (Assessment Year 2025-26) by the government. These revisions are intended to streamline the tax framework and offer assistance to taxpayers.
Key Changes

• Revised Slabs: Two income tax slabs have been revised, offering lower tax rates for certain income brackets.
• Increased Standard Deduction: The standard deduction has been raised from ₹50,000 to ₹75,000 under the new tax regime.

New Tax Regime

Understanding your tax liability shouldn't be a burden. The KreditBee Income Tax Calculator empowers you with the knowledge and tools to take control of your taxes. With its user-friendly interface, accurate calculations, and comprehensive features, it's your go-to resource for simplified tax management. Whether you're a salaried individual, a business owner, or have income from other sources, our calculator makes it easy to estimate your taxes and plan your finances effectively.