Indian Income Tax Calculator

Indian Income Tax Formula:

\[ Tax = (Taxable\ Income \times Slab\ Rate) - Rebates \]

Taxable Income:

₹

Tax Regime:

Age Group:

Income Tax Payable:

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1. How Income Tax Is Calculated in India

Indian income tax is calculated using a progressive slab system where different portions of your income are taxed at different rates. The basic formula is:

\[ Tax = (Taxable\ Income \times Slab\ Rate) - Rebates \]

2. Tax Regimes Explained

New Regime (2023-24): Offers lower tax rates but fewer deductions. Has 6 tax slabs starting from 0% to 30%.

Old Regime: Higher tax rates but allows more deductions and exemptions. Has 4 tax slabs.

3. Age-Based Tax Benefits

Below 60: Basic exemption limit of ₹2.5 lakh
60-80 years: Higher exemption limit of ₹3 lakh
Above 80: Highest exemption limit of ₹5 lakh

4. Using the Calculator

Steps: Enter your taxable income (after deductions), select tax regime, and your age group. The calculator will compute your tax liability.

5. Frequently Asked Questions (FAQ)

Q1: Which regime should I choose?
A: New regime benefits those with fewer investments/deductions. Old regime may be better if you have significant deductions.

Q2: What is the surcharge rate?
A: Surcharge applies if income exceeds ₹50 lakh (10-37% based on income level), not included in this calculator.

Q3: Are there any tax rebates?
A: Section 87A provides rebate up to ₹12,500 for income up to ₹5 lakh under old regime.

Q4: What about cess?
A: Health and education cess of 4% applies on total tax, not included here.

Q5: When is advance tax payable?
A: If tax liability exceeds ₹10,000 in a financial year, advance tax payments are required.