INCOME TAX CALCULATOR AY.2024-25 & AY.2023-24
The Income Tax Department in India does not provide an official income tax calculator on its website. However, they offer various tools and resources to help taxpayers calculate their income tax liabilities accurately.
Tax Slabs and Rates: The Income Tax Department publishes tax slabs and rates for each financial year. Taxpayers can refer to these slabs to understand how their income is taxed at different rates based on their income level.
Tax Deductions and Exemptions: The department also provides information about various deductions and exemptions available under the Income Tax Act, such as deductions for investments in specified instruments like Provident Fund, Public Provident Fund, National Savings Certificate, etc., as well as exemptions for certain incomes like HRA, LTA, etc.
Tax Calculator Tools: While the Income Tax Department doesn't have an official calculator, there are many reliable income tax calculator tools available online. These calculators take into account your income, deductions, exemptions, and other relevant details to estimate your tax liability accurately.
Income Tax Return Filing Software: The Income Tax Department also provides free income tax return filing software called "Income Tax Return Preparation Software" (ITR software). This software helps taxpayers prepare and file their income tax returns online. It computes the tax liability based on the details provided by the taxpayer.
Consultation with Tax Professionals: For complex tax situations or if you're unsure about how to calculate your income tax liability, it's advisable to consult with a tax professional or chartered accountant who can provide personalized guidance and assistance.
Taxpayers need to ensure that they accurately calculate their income tax liabilities and fulfil their tax obligations to avoid penalties and legal issues.
Income Tax Calculator 2023: Income Tax slabs for FY 2023-24 in India
The income tax calculator presents comparison to an individual about the income tax paid in two financial years. Currently, the income tax calculator is showing income tax liability in the current financial year 2022-23, ending on March 31, 2023, and the next financial year 2023-24 (between April 1, 2023 and March 31, 2024). The income tax calculator compares the income tax liability in the new tax regime and income tax liability in the old tax regime in two financial years.
Finance Minister Nirmala Sitharaman announced a slew of changes in income tax slabs under the new tax regime in Budget 2023. The changes are announced in the new tax regime to make it more attractive for individual taxpayers. An individual having taxable income of Rs 7.5 lakh, who would have paid Rs 39,000 as income tax in the current financial year, will pay zero tax in the next financial year. Hence, an income tax savings of Rs 39,000 under the new tax regime.
The key changes announced under the new tax regime are:
The income tax slabs have been revised from 6 to 5 under the new tax regime
Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh under the new tax regime
Standard deduction introduced for salaried individuals, and pensioners under the new tax regime
Highest surcharge rate reduced to 25% from 37% under the new tax regime
Rebate under Section 87A increased to taxable income of Rs 7 lakh under the new tax regime from Rs 5 lakh earlier. This would mean that from FY 2023-24, individuals having taxable incomes up to Rs 7 lakh and opting for the new tax regime will effectively pay zero taxes
The new tax regime would be the default option for taxpayers. However, an individual can choose to opt for the old tax regime.
Income tax slabs under new tax regime
Income tax rates under new tax regime
O to Rs 3 lakh - 0
Rs 3 lakh to Rs 6 lakh - 5%
Rs 6 lakh to Rs 9 lakh - 10%
Rs 9 lakh to Rs 12 lakh - 15%
Rs 12 lakh to Rs 15 lakh - 20%
Income above Rs 15 lakh - 30%
*Cess at the rate of 4% will be added to the income tax amount
*Surcharge will be applicable on taxable incomes above Rs 50 lakh
The new income tax slabs under the new tax regime will be applicable from April 1, 2023, for FY 2023-24. So, in April, when you submit the investment declarations to your employer for calculation of taxes on salary for FY 2023-24, your employer will assume that you have opted for the new tax regime unless you specify otherwise.
The new income tax slabs under the new tax regime will be applicable for the incomes earned between April 1, 2023, and March 31, 2024. While filing an income tax returns for FY 2023-24 (AY 2024-25), the new income tax slabs under the new tax regime will be used. The last date to file income tax returns for individuals whose accounts are not audited is July 31, 2024.
If you specifically opt for the old tax regime for the next financial year i.e., FY 2023-24, then there is no change in the income tax slabs and rates. The income tax slabs for FY 2023-24 is the same as FY 2022-23 under the old tax regime. Thus, if you are opting for the old tax regime in the next financial year, then income tax calculation will be done on the same income tax rates.
From April 1, 2023, individuals will have to specifically opt for the old tax regime because the new tax regime has become the default tax regime. If you want to opt for old tax regime, then you will have to ensure that your income tax return is filed on or before the deadline.
The income tax calculator takes into account various tax exemptions and deductions that you are eligible for under the old as well as new tax regime. The online income tax calculator tax into account standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D, Section 80TTA and other deductions that you are eligible for.
All the deductions that you are eligible for under both the tax regimes are considered by income tax calculator to calculate income tax liability.
If you are planning the tax-savings for the current financial year, then the above-mentioned income tax rates will not be applicable. For tax-saving for current financial year and filing the income tax return for FY 2022-23 (AY 2023-24), the existing new income tax regime or old income tax regime will be referred. The last date to file income tax return for FY 2022-23 (AY 2023-24) for individuals whose accounts are not required to be audited is July 31, 2023.
Here are the income tax slabs for FY 2022-23 that you will need to file income tax return this year.
Income tax slabs under existing new tax regime for FY 2022-23
Income tax slabs (In Rs)
Income tax rate (%)
From 0 to 2,50,000 - 0%
From 2,50,001 to Rs 5,00,000 - 5%
From 5,00,001 to 7,50,000 - 10%
From 7,50,001 to 10,00,000 - 15%
From 10,00,001 to 12,50,000 - 20%
From 12,50,001 to 15,00,000 - 25%
From 15,00,001 - 30%
Income tax slabs under the old tax regime depends on the age of an individual.
For individuals below 60 years of age, the basic exemption limit is Rs 2.5 lakh for FY 2022-23 and FY 2023-24.
Income tax slabs for individuals under old tax regime
Income tax slabs (In Rs)
Income tax rate (%)
From 0 to 2,50,000 - 0%
From 2,50,001 to 5,00,000 - 5%
From 5,00,001 to 10,00,000 - 20%
From 10,00,001 - 30%
For senior citizens, aged 60 years and above but below 80 years, the basic exemption limit is Rs 3 lakh for FY 2022-23 and FY 2023-24.
Income tax slabs for senior citizens under old tax regime
Income tax slabs (In Rs)
Income tax rate (%)
From 0 to 3,00,000 - 0%
From 3,00,001 to 5,00,000 - 5%
From 5,00,001 to 10,00,000 - 20%
From 10,00,001 - 30%
For super senior citizens, aged 80 years and above, the basic exemption limit is Rs 5 lakh for FY 2022-23 and FY 2023-24
Income tax slabs for senior citizens under old tax regime
Income tax slabs (In Rs)
Income tax rate (%)
From 0 to 5,00,000 - 0%
From 5,00,001 to 10,00,000 - 20%
From 10,00,001 - 30%
Cess will be applicable at 4% on the income tax payable for FY 2022-23 and FY 2023-24. Further, a surcharge will be applicable on taxable incomes above Rs 50 lakh. A rebate under Section 87A will be available in both the tax regimes for taxable incomes up to Rs 5 lakh for FY 2022-23.
