Calculate Your Income Tax (New Regime)
Estimated Tax Payable:
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Understanding Income Tax Calculation
The Income Tax Calculator helps you estimate the tax payable based on your annual income according to the New Regime Tax Slabs for the financial year 2024-25. This tool is designed to provide accurate calculations for taxpayers, ensuring you understand your potential tax liability in a few simple steps.
How Income Tax is Calculated?
Income tax is calculated based on the income tax slabs defined by the government. The New Regime offers different tax rates for different income ranges. This calculator applies those slabs to your income and calculates the tax payable based on the applicable rates.
What is the New Regime?
The New Regime is a simplified tax system introduced by the Government of India that offers reduced tax rates in exchange for the removal of various exemptions and deductions. This means taxpayers can enjoy lower taxes without needing to claim exemptions like HRA or standard deduction.
Income Tax Slabs for the Financial Year 2024-25
The income tax slabs for the New Regime in the financial year 2024-25 are as follows:
- Up to ₹3,00,000: No tax
- ₹3,00,001 - ₹6,00,000: 5%
- ₹6,00,001 - ₹9,00,000: 10%
- ₹9,00,001 - ₹12,00,000: 15%
- ₹12,00,001 - ₹15,00,000: 20%
- Above ₹15,00,000: 30%
Frequently Asked Questions (FAQs)
What is the New Regime Tax System?
The New Regime offers a reduced tax rate for individuals and removes many common tax exemptions. If you prefer a simpler tax calculation with fewer deductions, the New Regime might be a good option for you.
How do I know if I should choose the New Regime or the Old Regime?
If you don't have significant exemptions or deductions, the New Regime might save you more money with lower tax rates. However, if you have many exemptions (such as HRA, home loan interest, etc.), the Old Regime might be better for you. You can compare both regimes to make an informed decision.
Are there any tax deductions available under the New Regime?
Under the New Regime, you cannot claim deductions like 80C, 80D, etc., except for NPS contributions and EPF. The focus is on reducing your tax burden without requiring you to track numerous exemptions.