Income Tax Calculator Online: Calculate Taxes for FY 2024-25

An income tax calculator makes it easier to determine your tax liability. Manual calculations can be complex, especially with high amounts or incomes from multiple sources. As a law abiding citizen, it’s your responsibility to pay income tax. This is regardless of whether you are salaried or self-employed.

This tool helps you compute your taxes on your own without the help of an agent or accountant. It takes into account different factors such as deductions and exemptions offered under various sections of the Income Tax Act, 1961. The calculator also considers your total income and investments, among other factors. The final results show the estimated total outgo.

How to Calculate Income Tax

Computing your tax outgo accurately is essential to fulfil your obligations. For your convenience, here is a detailed breakdown of how to compute it:

1. Income Calculation

Start by jotting down your net income, which includes all your returns and earnings. Make all the necessary deductions, such as house rent allowance, before you consider an amount for calculations. This would be a total of your gross income.

Some income sources applicable are as follows:

Income from house property
Income from capital gains
Income from salary
Income from other sources

2. Taxable Net Income Calculation

Your taxable income is the total income for which you need to pay taxes. Knowing your taxable income can help you strategise and infer the various tax saving investments you could benefit from. Here are some provisions under various sections that could help you enjoy tax benefits:

Section 80C: Claim up to ₹1.5 Lakhs in deductions on ELSS, home loan repayment, life insurance, PPF, etc.
Section 80CCD: Enjoy a deduction of up to ₹1.5 Lakhs on the National Pension Scheme and other schemes and an additional ₹50,000
Section 80D: Claim up to ₹1 Lakh on health insurance premiums paid and other medical expenses
Section 80DD: Get deductions for treatment of dependent, specially-abled family members
Section 80E: Enjoy deductions on repayment of educational loans taken for up to 8 years

3. Tax Slab

The tax slab for the financial year 2025-26 has significant changes. The new tax regime simplifies the tax filing process and can help you derive a total taxable amount after subtracting a deductible tax value from your total income. You can get this easily with an online income tax calculator.

4. Combine Taxes

After identifying the tax amount, the tax benefits, and other tax liabilities, it is time to combine those taxes to derive a collective number. At this point, Section 87A comes into play, and here is how it works.

If your tax liabilities add up to less than ₹5 Lakhs, the Government of India has offered you the opportunity to claim up to ₹12,500 as a rebate. Please note that exceeding the tax amount limit of ₹5 Lakhs makes you ineligible for this rebate.

How to Use an Income Tax Calculator Online

You can use Quicko’s income tax calculator through Bajaj Markets to ensure accuracy in your calculations. A detailed guide on how to use the calculator is given below:

Pick the financial year for which you would like to calculate your taxes
Choose your category by age, considering that tax liabilities differ according to your age
Pick the residential status
Provide details about your yearly income
Enter information regarding your investments, your insurance, loan details, deposits, deductions, etc.
Proceed to view your tax details on your screen

Taxation Rates Under the Old and New Income Tax Regimes

Given below is a comparison between the new and the old tax regime to help you better understand how you can use an income tax calculator.

1. Tax Slab for Regular Citizens

Here are the taxation rates for citizens aged below 60 years according to both the old and the new tax regimes:

Annual Income	Tax Rate under Old Tax Regime
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
₹10,00,001 and above	30%

Annual Income	Tax Rate under New Tax Regime
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
₹24,00,001 and above	30%

2. Tax Slab for Senior Citizens

The table given below provides the tax rates for citizens above the age of 60 but less than 80 years:

Annual Income	Tax Rate under Old Tax Regime
Up to ₹3,00,000	Nil
₹3,00,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
₹10,00,001 and above	30%

Annual Income	Tax Rate under New Tax Regime
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
₹24,00,001 and above	30%

3. Tax Slab for Super Senior Citizens

A super senior citizen refers to the tax-paying group that lies above the age of 80 years. The table below includes the tax rates for super senior citizens:

Annual Income	Tax Rate under Old Tax Regime
Up to ₹5,00,000	Nil
₹5,00,001 – ₹10,00,000	20%
₹10,00,001 and above	30%

Benefits of Using the Income Tax Calculator

The income tax calculator comes with various benefits that can make tax paying easy for you.

Accuracy

The calculator is fully automated, which means it provides error-free results and it draws values that are close to accuracy.

Instant Results

Using this tool helps you get the results instantly, which is a useful alternative to manual calculations.

Convenience

Since the income tax calculator is an online tool, you can use it whenever and wherever you wish at your convenience.

Assessment

You can easily carry out assessments with the automatic computations provided to you by the income tax calculator.

Tax-paying Categories That Should Calculate Income Tax

Knowing the tax-paying categories in India is essential to understand whether you need to pay income tax.

Salaried Individuals

Salaried individuals are those who work for other employers such as companies, offices, etc. The net salary is factored into the gross salary amount, Employee Provident Fund, gratuity, various allowances, and more.

For salaried individuals, tax is deducted at the source. The tax amount is subtracted from the salary, along with other deductions, before the gross salary reaches the employee.

Individuals Receiving Income from Rentals

Various housing property owners choose to lease their property to tenants who pay the owners a monthly rent. This becomes an alternate income for the owners, and hence, rental income is liable to undergo tax deductions under the Income Tax Act.

Individuals Getting Professional/Business Gains

Whether you are an entrepreneur or a freelancer, the capital you earn is an income. Hence, it must bear the brunt of tax deductions. As per the Income Tax Act, money earned through a business or any professional source is considered an income. Therefore, its net amount is required to be subtracted by a certain tax percentage.

Individuals Getting Income from Other Sources

Apart from the ones mentioned above, various sources can bring you income. This could include a cash prize, a lottery, cash gifts, etc. In such cases, the tax is usually deducted at the source.

Is TDS computed in the calculations of the income tax calculator?

No, TDS is not taken into account by the income tax calculator.

Is income tax computed on a gross salary?

No, income tax is computed on a net salary, which later derives your gross income after deductions and claims in a specific financial year.

Can an income tax calculator be used internationally?

Yes, an income tax calculator can be used internationally. It is an online tool that is globally accessible.

Is there a fee to use the income tax calculator?

Using an income tax calculator online requires zero payment. Additionally, you can use the calculator as many times as you want.

How is the new tax regime different?

The new tax regime is a simplified structure based on which you can pay lower taxes. However, you may have to forego certain exemptions and deductions.

Which tax regime is best suited for salaried individuals?

The choice between the two tax regimes depends on your financial situation and the tax-saving investments that you have. As a salaried employee with a lower income and limited investments, a new tax regime may be a preferred option.

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