What is an Income Tax Calculator?
After the Union Budget is announced, you may estimate your taxes based on your income with the aid of this simple online calculator. In accordance with the income tax adjustments put out in the Union Budget 2024–2025, HR HUB has updated the tool.
How can the Income tax calculator be used for FY 2024-25 (AY 2025-26)?
The steps to utilize the tax calculator are as follows:
Select the financial year that you would like your taxes to be computed for.
Choose your age appropriately. In India, tax obligations vary according to age groupings.
Mention your income and deduction details.
Click on ‘Calculate'
Note: Whichever field is not applicable, you can enter "0".
Example for Calculating Income Tax
For Salaried Employees
The total of the salary is your income from salary: Basic Pay + HRA + Special Allowance + Transport Allowance + any other allowances.
Certain parts of your pay, such as the reimbursement of phone bills and the leave travel allowance, are not subject to taxes. You may be eligible for an HRA exemption if you live on rent and get HRA.
In addition to these exemptions, both the old and new regimes provide for a standard deduction of ₹ 50,000. In the most recent budget for 2024, this was raised to ₹ 75,000 exclusively for the New Regime.
If you use the new tax system, you will not be eligible for these exemptions.
Using an example, let's examine how income tax is calculated under the present tax slabs and the new tax slabs (optional).
An employee named Sujata gets a monthly Basic Salary of ₹ 1,25,000, an HRA of ₹ 60,000, a monthly Special Allowance of ₹ 25,000, and an LTA of ₹ 30,000 per year. Sujata resides in Delhi and pays a rent of ₹ 40,000.
| Nature |
Amount |
Exemption/Deduction |
Taxable (Old Regime) |
Taxable (New Regime) |
| Basic Salary |
₹15,00,000 |
- |
₹15,00,000 |
₹15,00,000 |
| HRA |
₹7,20,000 |
₹4,80,000 |
₹2,40,000 |
₹7,20,000 |
| Special Allowance |
₹3,00,000 |
- |
₹3,00,000 |
₹3,00,000 |
| LTA |
₹30,000 |
₹15,000 (bills submitted) |
₹15,000 |
₹30,000 |
| Standard Deduction |
- |
₹50,000 |
₹50,000 |
₹75,000 |
| Gross Total Income from Salary |
|
|
₹0 |
₹1,30,000 |
Which deductions and exemptions are prohibited under the new tax law?
The following exemptions and deductions will not be available to an individual or HUF choosing to be taxed under the recently added section 115BAC of the Act:
Abandon the travel concession as specified in section 10 clause (5);
The allowance for house rent as specified in section 10 clause (13A);
A portion of the allowance as specified in section 10 clause (14);
The allowances for MPs and MLAs as specified in section 10 clause (17);
The allowance for a minor's income as specified in Section 10 Clause (32);
Section 10AA's exemption for SEZ units;
The Section 16 deduction for entertainment allowance and employment/professional tax;
Interest under section 24 about empty or self-occupied property as mentioned in section 23 subsection (2). (Loss under the heading "Income from House Property for the Rented House" may be carried forward under current legislation and may not be set off under any other heading;)
Extra deprecation per section 32's sub-section (1) clause (iia);
Deductions allowed under sections 33AB, 33ADA, and 32AD;
Different deductions for donations or costs associated with scientific research are included in subclauses (ii), (iia), (iii), and (iv) of subsection (1) or subclause (2AA) of section 35;
A deduction made in accordance with 35AD or 35CCC;
Withholding from family pension in accordance with section 57's paragraph (iia);
Any deduction allowed by chapter VIA, which includes sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, and so on. On the other hand, deductions under section 80JJAA (for new employment) and section 80CCD (employer contribution on account of the employee in designated pension system), sub-section (2), may be made.
The following allowances will be granted to the Individual or HUF exercising option under the proposed section, as notified under section 10(14) of the Act:
A divyang employee is given a transport allowance to help with the cost of traveling from their place of residence to their place of employment.
Conveyance Allowance given to cover transportation costs incurred while carrying out official tasks;
Any reimbursement provided to cover the expense of transportation during a tour or transfer;
Daily Allowance to cover the regular expenses an employee incurs each day due to absences from their regular place of employment.
FAQs
The tax you must pay will be determined by the income bracket to which you belong.
Income tax rates that apply to those under 60 in the event of a new regime.
| Income Slab |
Applicable Tax Rate |
| Up to Rs 3 lakh |
Nil |
| Above Rs 3 lakh and up to Rs 7 lakh |
5% |
| Above Rs 7 lakh and up to Rs 10 lakh |
10% |
| Above Rs 10 lakh and up to Rs 12 lakh |
15% |
| Above Rs 12 lakh and up to Rs 15 lakh |
20% |
| Above Rs 15 lakh |
30% |
Suppose you have a taxable income of Rs 9 lakh, your tax will be calculated as follows:
| Income Slab |
Applicable Tax Rate |
Applicable Income |
Tax (in Rs) |
| Up to Rs 3 lakh |
No tax |
0 |
0 |
| Above Rs 3 lakh and up to Rs 7 lakh |
5% |
Rs 4 lakhs |
20,000 |
| Above Rs 7 lakh and up to Rs 10 lakh |
10% |
Rs 2 lakhs |
20,000 |
| Total Income Tax Payable |
|
|
40,000 |
Hence, you will be required to pay a tax of Rs 20,000 (excluding cess) on your taxable income i.e. Rs 9 lakhs.
Under the previous system, an individual's total non-taxable income could not exceed ₹ 2.5 lakhs. However, if your total income for the fiscal year 2018–19 is up to ₹ 3.5 lacs, you may also be eligible for a reimbursement of ₹ 2,500 under section 87A. The refund has been raised to ₹ 12,500 for incomes up to ₹ 5 lakh as of FY 2019–20. That implies that starting in FY 2019–20, a person making up to ₹ 5 lakh will not be obliged to pay any income tax. You won't have to pay taxes until you reach ₹ 6.5 lakhs if you have tax-saving investments under section 80C totalling up to ₹ 1.5 lakhs.
The upper ceiling of an individual's non-taxable income under the New Regime is set at ₹ 3 lakh in the budget for 2023. On the other hand, if your total income for FY 2023–2024 is up to ₹ 7 lacs, you can also receive a rebate of ₹ 25,000 under section 87A. That implies that starting in FY 2023–2024, a person making up to ₹ 7 lakh would not be obliged to pay any income tax. Nonetheless, the section 87A rebate cap remains at 5 lakhs for the previous period.
An individual is exempt from filing income taxes if his income exceeds the basic exemption amount. However, to receive an income tax refund, a person's income must be less than ₹ 2.5L (under the previous regime) or ₹ 3L (under the new regime). To do this, an ITR must be filed. In all other cases, however, income tax returns must be filed.
I'm sorry, but the income tax calculator does not calculate the tax deducted at source (TDS). However, it does compute your tax obligation for the assessment year.
Basic data like current residence, Aadhar card details, and PAN.
Every bank account data is kept during a fiscal year.
Evidence of income, such as current pay information and income from assets (such as savings accounts and mutual funds), etc.
Every deduction made by Chapter VI-A or Section 80.
Information on tax payments, including advance tax payments and TDS.
HR HUB’s Tax Calculator simplifies income tax estimation, helping individuals quickly determine their tax liability for the financial year. Updated in line with the Union Budget 2024-25, the calculator allows users to input their income details, select the applicable tax regime, and receive accurate tax calculations instantly. Whether under the old or new tax system, HR HUB’s tool provides clarity on deductions, exemptions, and payable tax, making tax planning effortless.
