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Indian Salary Tax Calculator

Introduction

Income tax is one of the most important aspects of personal finance in India. Every salaried individual wants to know their exact take-home salary after deductions. With changing tax rules, multiple regimes, and frequent updates announced in the Union Budget, manual tax calculation becomes confusing. That’s why we built this Indian Salary Tax Calculator — a simple, fast, and reliable way to estimate your tax liability under both the New Tax Regime and the Old Tax Regime.

Purpose of This Tool

The purpose of this calculator is to help employees, freelancers, and professionals understand their actual tax liability before filing returns. Instead of manually going through slab rates, deductions, and cess calculations, you can just enter your salary, choose your regime, and instantly see the tax payable and your net take-home income.

Why Is Tax Calculation Important?

  • Helps you plan savings and investments for the year.
  • Allows you to compare the New Regime vs. Old Regime to see which is more beneficial for your income level.
  • Prevents last-minute surprises when filing Income Tax Returns (ITR).
  • Supports better financial planning like EMI, insurance, and retirement contributions.

How Does the Calculator Work?

Our tool uses the official tax slabs announced in the latest budget. You enter your Gross Annual Salary, select whether you’re under the New or Old Regime, and provide deductions (if applicable in the Old Regime). The calculator then applies slab-based tax rates, adds the 4% Health and Education Cess, and shows your total tax liability.

New Tax Regime (default)

In the New Regime, the government offers simplified slabs but removes most deductions like HRA, 80C, or 80D. However, it provides a standard deduction of ₹50,000 for salaried individuals. For many middle-income earners, this regime offers lower tax outgo if they don’t claim high deductions.

Old Tax Regime

The Old Regime continues to allow deductions and exemptions such as:

  • Section 80C: Up to ₹1.5 lakh on PF, ELSS, LIC, home loan principal repayment, etc.
  • Section 80D: Medical insurance premium deduction.
  • HRA (House Rent Allowance): For salaried individuals living in rented accommodation.
  • Standard Deduction: ₹50,000.

Thus, the Old Regime is useful for those with significant investments and deductions.

Detailed Example Calculation

Suppose your gross annual salary is ₹12,00,000.

  • New Regime: After the ₹50,000 deduction, taxable income is ₹11,50,000. Based on slabs, your tax would be calculated step by step and cess added. The final liability may be around ₹1.2–1.3 lakh.
  • Old Regime: If you claim deductions worth ₹2 lakh (80C + 80D + HRA), taxable income drops to ₹9,50,000. After slab-based tax and cess, liability may be lower than the New Regime depending on your investments.

This shows why comparing both regimes is crucial before making a choice.

Benefits of Using This Tool

  • Free and easy to use.
  • No personal data stored; privacy is maintained.
  • Updated with the latest tax rules.
  • Gives instant results, saving time compared to manual computation.

Limitations

  • This calculator provides an estimate only. Final tax liability depends on exemptions, rebates, and government notifications.
  • Professional advice from a Chartered Accountant (CA) is recommended for complex cases like business income, capital gains, or international taxation.
  • Figures are rounded for simplicity.

Tips to Save Taxes Legally

  • Maximize 80C investments (PPF, ELSS, NPS, LIC).
  • Buy health insurance and claim under 80D.
  • Use HRA if living in rented accommodation.
  • Claim home loan benefits (interest under 24b + principal under 80C).
  • Contribute to NPS and claim extra ₹50,000 deduction under 80CCD(1B).

Mini FAQ

  • Is this calculator accurate? Yes, it uses the official tax slabs and cess rules. But consult a CA for filing.
  • Can freelancers use it? Yes, enter your annual income as salary and see results.
  • Does it store my data? No, calculations run in your browser and no data is saved.
  • Which regime should I choose? If you don’t claim many deductions, the New Regime is usually better. Otherwise, Old Regime may save you money.

Conclusion

Understanding income tax is essential for every salaried person in India. With two regimes to choose from, making the right decision can save thousands of rupees annually. Our Indian Salary Tax Calculator simplifies this process by providing instant, transparent, and accurate results. Use it regularly for financial planning, compare both regimes before choosing, and always keep track of your investments and deductions.