Find out how much tax you have to pay
Based on age, select appropriate tax slabs from rows 25 to 40Annual IncomeGross income - Salary, rental income, freelance income, business income, etc.
Gross income - Salary, rental income, freelance income, business income, etc.₹
Exemptions/Deductions
HRA/Deductions
Total tax (Old regime)
₹ 0
Total tax (New regime)
₹ 0
Frequently Asked Questions
Do you want to know how the Union Budget 2023 impacts your income? Calculate your income tax for 2023 using the above calculator and know how much is taxable.
Avoid all the unprecedented blows to your pocket by learning exactly how much you need to pay and avoid getting caught in the long, tedious process of claiming refunds.
Avoid all the unprecedented blows to your pocket by learning exactly how much you need to pay and avoid getting caught in the long, tedious process of claiming refunds.
What are the income tax highlights from Budget 2023?
Several changes were introduced through Budget 2023 in the personal tax policy. New regime has been made the default regime starting FY 2023-24. But taxpayers can still opt for the old regime. Moreover, the tax exemption limit has been extended from Rs.2.5 lakh to Rs.3 lakh under the new regime.
A tax rebate has also been introduced under the new regime on income up to Rs.7 lakhs, which means taxpayers whose net taxable income is below Rs. 7 lakhs do not have to pay any tax. You can check out the updated tax slabs here. Interestingly, the standard deduction, earlier offered only under the old regime, has been extended to the new regime as well.
Surcharge on the highest income category has been reduced from 37% to 25% in the new tax regime. Finally, the tax exemption on leave encashment on retirement has been increased to Rs. 3 lakh for non-government employees.
A tax rebate has also been introduced under the new regime on income up to Rs.7 lakhs, which means taxpayers whose net taxable income is below Rs. 7 lakhs do not have to pay any tax. You can check out the updated tax slabs here. Interestingly, the standard deduction, earlier offered only under the old regime, has been extended to the new regime as well.
Surcharge on the highest income category has been reduced from 37% to 25% in the new tax regime. Finally, the tax exemption on leave encashment on retirement has been increased to Rs. 3 lakh for non-government employees.
How is the old tax regime different from the new tax regime in 2023?
If you choose the new regime, there's absolutely no planning that you need to do. Just put your income in and calculate the taxes.
But if you go for the old regime, you save a lot of taxes via deductions, and good things don't come easy.
Assuming you go with the old regime, you're in for a ride. There are a host of tax deductions waiting for you. In a way, the old regime nags you to invest more in tax-saving instruments, insurance, etc.
But if you go for the old regime, you save a lot of taxes via deductions, and good things don't come easy.
Assuming you go with the old regime, you're in for a ride. There are a host of tax deductions waiting for you. In a way, the old regime nags you to invest more in tax-saving instruments, insurance, etc.
What is the difference in slabs between the old and new tax regime?
OLD TAX REGIME (For FY 2022-23 & 2023-24)
| INCOME SLABS | % |
|---|---|
| Up to Rs.2.5 lakhs | Nil |
| Rs.2.5 – 5 lakh | 5% |
| Rs.5 – 10 lakh | 20% |
| Above 10 lakh | 30% |
NEW TAX REGIME (For FY 2022-23 & 2023-24)
| For FY 2022-23 | For FY 2023-24 | ||
|---|---|---|---|
| INCOME SLABS | Rate (%) | INCOME SLABS | Rate (%) |
| Up to Rs.2.5 lakhs | Nil | Up to Rs.3 lakhs | Nil |
| Rs.2.5 – 5 lakh | 5% | Rs.3 – 6 lakh | 5% |
| Rs.5 – 7.5 lakh | 10% | Rs.6 – 9 lakh | 10% |
| Rs. 7.5 – 10 lakh | 15% | Rs. 9 – 12 lakh | 15% |
| Rs. 10 – 12.5 lakh | 20% | Rs. 12 – 15 lakh | 20% |
| Rs. 12.5 – 15 lakh | 25% | Rs. 15 lakh & above | 30% |
| Rs. 15 lakh & above | 30% | - | - |
How to use the tax calculator?
Fill in your annual income in the first section. If you've chosen the old regime, fill in the deductions listed in the calculator (such as 80C, 80CCD & 80D). For the HRA deduction, use the table right below the calculator. Tada, you have your income tax calculations done.
For better understanding, refer to this sample calculation below. In the case of the old regime with deductions, the taxable income would be Rs. 7,25,000. However, in case of the new regime, since only standard deduction of Rs.50,000 is permitted, the taxable income will be Rs. 9,50,000.
Fun fact: You can calculate the salary you'll get in hand post-tax deduction.
For better understanding, refer to this sample calculation below. In the case of the old regime with deductions, the taxable income would be Rs. 7,25,000. However, in case of the new regime, since only standard deduction of Rs.50,000 is permitted, the taxable income will be Rs. 9,50,000.
OLD REGIME (FY 2023-24)
| Annual Income | 10,00,000 | - | ||
|---|---|---|---|---|
| Exemptions u/s 80C | (1,50,000) | |||
| u/s 80CCD(1B) | (50,000) | |||
| u/s 80D | (75,000) | |||
| Taxable Income | 7,25,000 | |||
| Income tax slab | Tax Rate | Tax (Rs.) | ||
| Up to Rs.2,50,000 | 0 | 0 | ||
| 250001 – 500000 | 5% | 12,500 | ||
| 500001 – 1000000 | 20% | 50,000 | ||
| Sum | - | 62,500 | ||
| Health and education cess | 4% | 2,500 | ||
| Tax payable | 65,000 | |||
NEW REGIME (FY 2023-24)
| Annual Income | 10,00,000 | |
|---|---|---|
| Standard deduction | (50,000) | |
| Taxable Income | 950,000 | |
| Income tax slab | Tax Rate | Tax (Rs.) |
| Up to Rs.3,00,000 | 0 | 0 |
| 300001 – 600000 | 5% | 15,000 |
| 600001 – 900000 | 10% | 30,000 |
| 900001 – 1200000 | 15% | 37,500 |
| Sum | - | 82,500 |
| Health and education cess | 4% | 3,300 |
| Tax payable | 85,800 | |
Fun fact: You can calculate the salary you'll get in hand post-tax deduction.
What are the changes in the old tax regime as per Budget 2023?
Old tax regime remains unchanged for 2023-2024. However, tax slabs & rates were changed in the new regime.
Is standard deduction applicable in the new tax regime?
Yes, based on the changes implemented in Budget 2023, a standard deduction of Rs. 50,000 is permitted even under the new tax regime. Starting FY 2023-24, tax liability will be calculated after deducting Rs. 50,000 from the gross total income under the new regime.
What does the rebate under section 87A imply?
Rebate limit under section 87A has been increased to Rs.7 lakhs under the new tax regime as per Budget 2023. It implies that an individual will not have to pay any tax under the new regime, if their net taxable income is below Rs.7 lakhs.
A similar rebate is also available for the old regime. However, the limit on taxable income (after deductions from 80C, 80CCD & other categories) is Rs. 5 lakhs here.
Note that only resident taxpayers can claim a rebate under section 87A and rebate is always applied on total tax before adding a 4% health & education cess.
A similar rebate is also available for the old regime. However, the limit on taxable income (after deductions from 80C, 80CCD & other categories) is Rs. 5 lakhs here.
Note that only resident taxpayers can claim a rebate under section 87A and rebate is always applied on total tax before adding a 4% health & education cess.
What exemptions are allowed in the new tax regime?
Around 70 deductions will not be available under the new tax regime, including HRA, DA, 80(C), LTA & similar exemptions. However, in Budget 2023, the standard deduction of Rs.50,000 has been extended to the new tax regime as well. Other deductions permitted as per Budget 2023 include exemption on expenses towards income from family pension & any amount deposited in the Agniveer Corpus Fund.
Can we switch between old and new tax regimes every year?
If you're a salaried professional, selecting between the old and new regime is open to you forever, but if you're a self-employed individual with business income, you get that chance only once. Calculate your tax in the two schemes using our tax calculator before you make a decision.
Do remember that starting the financial year 2023-24, new regime will be the default option.
Do remember that starting the financial year 2023-24, new regime will be the default option.
Which income tax slab is better: old or new?
The new income tax rules can be good for people who earn a moderate income. This is because the new rules offer lower tax rates for those making up to 15 lakh rupees per year. However, if you make a lot of money, the old rules may be better for you.
If you don't have many tax-saving investments, the new tax rules can help you pay less in taxes. For example, if you make up to 12 lakh rupees and don't have many investments, the new rules might be better for you.
On the other hand, if you already have a plan to save money and reduce your taxes, such as by investing in tax-saving instruments, insurance, paying for education, or buying a house, then the old rules might be better for you. They offer more tax deductions and can help you pay less in taxes.
It's important to look at both the new and old tax rules to see which one is better for you. The best choice might be different for each person, so it's a good idea to compare the two and choose the one that will save you the most money.
If you don't have many tax-saving investments, the new tax rules can help you pay less in taxes. For example, if you make up to 12 lakh rupees and don't have many investments, the new rules might be better for you.
On the other hand, if you already have a plan to save money and reduce your taxes, such as by investing in tax-saving instruments, insurance, paying for education, or buying a house, then the old rules might be better for you. They offer more tax deductions and can help you pay less in taxes.
It's important to look at both the new and old tax rules to see which one is better for you. The best choice might be different for each person, so it's a good idea to compare the two and choose the one that will save you the most money.
What is other income in IT?
Income today comes from a lot of sources apart from just salary. It could be rental income, income from freelancing, trading or any other side project, and you will have to pay taxes on them now and then, but the calculator makes it simple for you.
The above calculator displays all permissible deductions you can claim along with the explanation.
The above calculator displays all permissible deductions you can claim along with the explanation.
What income level is not taxable?
For different age group, income below the following levels is exempt from taxes -
| OLD REGIME | NEW REGIME | |
|---|---|---|
| Individual tax payer (upto 59 years) | 2,50,000 | 3,00,000 |
| Senior Citizen (60 & above) | 3,00,000 | |
| Super Senior Citizen (80 & above) | 5,00,000 |
What is the 80(C) limit for FY 2023-24?
For the 2023-2024 financial year, the 80C limit is 1,50,000 rupees.
This means you can claim deductions for contributions made towards various investment options such as employee provident fund, public provident fund, equity-linked savings scheme, Sukanya samriddhi, senior citizens savings scheme, national savings certificate, 5-year term deposit, life insurance or unit-linked insurance policy premium, repayment of home loan principal, stamp duty for house purchase, and school tuition fee for a maximum of 2 children.
However, keep in mind that the overall limit for deductions under 80C, 80CCC, and 80CCD(1) is also 1,50,000 rupees.
This means you can claim deductions for contributions made towards various investment options such as employee provident fund, public provident fund, equity-linked savings scheme, Sukanya samriddhi, senior citizens savings scheme, national savings certificate, 5-year term deposit, life insurance or unit-linked insurance policy premium, repayment of home loan principal, stamp duty for house purchase, and school tuition fee for a maximum of 2 children.
However, keep in mind that the overall limit for deductions under 80C, 80CCC, and 80CCD(1) is also 1,50,000 rupees.
What is the difference between HRA & DA?
Dearness allowance (DA) is a salary component employers give to compensate for increasing living costs. It is calculated as a % of basic salary & is often paid to government & public sector employees.
Private employers usually pay House Rent Allowance (HRA) towards the rent expenses of an employee.
Private employers usually pay House Rent Allowance (HRA) towards the rent expenses of an employee.
How to claim HRA in income tax return?
While complete HRA amount is not exempt from tax, the least of the following will be deducted from taxable income:
- HRA paid by employer
- Actual rent minus 10% of salary
- 50% of basic salary (in metro cities) or 40% of basic salary (in non-metro cities)
Who can claim a deduction u/s 80GG?
This deduction applies to salaried or self-employed taxpayers who do not receive HRA but are still paying rent. The least of the following will be deducted from taxable Income:
- Rs.5,000 a month
- 25% of the total Income (excluding LTCG & STCG u/s 111A, Income u/s 115A or 115D and deductions u/s 80C to 80U)
- Actual rent minus 10% of Income (before deductions u/s 80GG).
How much capital gain is tax free in India?
Capital gains tax is levied on the profit you make when you sell an investment in different assets like land, house, vehicles etc. It is owed in the year that you sell the investment in.
If you own the investment for at least one year, you'll owe long-term capital gains. If held for less than one year, you'll owe short-term capital gains tax, which is based on your existing income tax rate.
If you own the investment for at least one year, you'll owe long-term capital gains. If held for less than one year, you'll owe short-term capital gains tax, which is based on your existing income tax rate.
| Investment | Min. Holding period to qualify as Long term | LTCG Rate (%) | STCG Rate (%) |
|---|---|---|---|
| Debt mutual funds | 3 years | As per tax slab | 20% |
| Listed bonds | 1 year | As per tax slab | 10% |
| Unlisted bonds | 3 year | As per tax slab | 20% |
| Equity & equity MFs | 1 year | 15% | 10% |
| Real estate | 2 years | Tax slab | 20% |
When is the surcharge rate applicable on income?
A surcharge is levied when an individual’s income exceeds Rs. 50 lakhs. An additional % is charged on the tax in such cases -
| Range of Income | Surcharge as of FY 2023-24 |
|---|---|
| Up to Rs. 50 lakh | Nil |
| Rs.50 lakhs to Rs.1 crore | 10% |
| Rs.1 crore to Rs. 2 crore | 15% |
| Rs .2 crore to Rs. 5 crore | 25% |
| Above Rs. 5 crore | 25% |
What critical timelines should I remember while filing taxes?
April: Decide on the tax regime: old or new, don't wait until the last moment
May: Income tax declaration from the employer, fill it diligently. Most employers allow you to make a few edits every month, however.
June: Pay advance taxes by June 15 if you have other income as well
July: File taxes for the previous financial year
September: Second installment of your advance tax
December: Employer emails you asking for proof of investments. Instalment #3 for advance tax.
February: The first day of the month is budget day. You might get some tax incentives from the government.
March: Advance tax due on 15th day of the year.
May: Income tax declaration from the employer, fill it diligently. Most employers allow you to make a few edits every month, however.
June: Pay advance taxes by June 15 if you have other income as well
July: File taxes for the previous financial year
September: Second installment of your advance tax
December: Employer emails you asking for proof of investments. Instalment #3 for advance tax.
February: The first day of the month is budget day. You might get some tax incentives from the government.
March: Advance tax due on 15th day of the year.