Income Tax Calculator FY 2024-2025

For which financial year do you intend to calculate taxes?

FY 2024-2025 Latest Budget (Return to be filed between 1st April 2025-31st March 2026) FY 2023-2024 (Return to be filed between 1st April 2024-31st March 2025)

Your age?

0 to 60 60 to 80 80 & above Section 87A Exemption: As per Budget 2023, individuals with taxable income below Rs. 7 lakh are eligible for income tax rebate under Section 87A.

Income details

Income from Salary: ₹ Income from Interest: ₹ Rental Income Received: ₹ Income from Digital Assets: ₹ Other Income: ₹ Exempt Allowances: ₹ Interest on Home Loan- Self occupied: ₹ Interest on Home Loan- Let Out: ₹

Deductions

Basic Deductions-80C: ₹ Interest from Deposits - 80TTA: ₹ Medical Insurance-80D: ₹ Donations to Charity 80G: ₹ Interest on Educational Loan - 80E: ₹ Interest on Housing Loan - 80EEA: ₹ Employee's contribution to NPS-80CCD: ₹ Standard Deduction: ₹

Summary

	Budget (Old Regime) FY(2023-2024)	Budget (New Regime) FY(2024-2025)
Total Income:	₹	₹
Exemptions & Deductions:	₹	₹
Taxable Income:	₹	₹
Income Tax:	₹	₹
Health and Education Cess:	₹	₹
Total Tax Due:	₹	₹

Income Tax Calculator Guidelines

I am writing to inform you about the implementation of a new tax regime affecting our financial landscape. The revised tax structure entails significant changes compared to the previous system, warranting our attention to ensure compliance and strategic financial planning.

Under the new regime, exemptions and deductions previously available are now replaced with a streamlined tax structure. Notably, individuals stand to benefit from an expanded tax-free threshold, with the entire income being exempt from taxation if the taxable income falls below Rs 7 lakh.

What is Financial Year for Income Tax in India

In India, the financial year is the period used for calculating income tax, Here's what you need to know:

• When it Starts: April 1st

• When it Ends: March 31st of the next year

For example:

• The financial year 2023-24 runs from April 1, 2023, to March 31, 2024.

After the financial year ends on March 31st, you need to file your income tax returns. The deadline for filing is usually July 31st of the assessment year, which is the year following the financial year. So, for the financial year 2023-24, the assessment year is 2024-25.

This means you will report your income earned between April 1, 2023, and March 31, 2024, and file your tax returns by July 31, 2024. Remember, staying on top of these dates is crucial to avoid any penalties and ensure smooth tax filing!

Outlined below are the key tax brackets and rates delineated in the new regime:

Income up to Rs 3 lakh: Exempt from tax.
Income over Rs 3 lakh up to Rs 6 lakh: Taxed at a rate of 5%.
Income over Rs 6 lakh up to Rs 9 lakh: Taxed at a rate of 10%.
Income over Rs 9 lakh up to Rs 12 lakh: Taxed at a rate of 15%.
Income over Rs 12 lakh up to Rs 15 lakh: Taxed at a rate of 20%.
Income above Rs 15 lakh: Taxed at a rate of 30%.

Income Categories:

1. Income from Salary: This represents gross salary earnings before adjustments for House Rent Allowance (HRA), Leave Travel Allowance (LTA), standard deductions, and professional tax. Additionally, any leave encashment is considered, capped at a maximum of 25 lakhs.

2. Income from Interest: This includes interest earned from various sources such as savings bank accounts, deposits, and other interest-bearing instruments.

3. Rental Income Received: This pertains to the annual rental revenue generated from leased-out properties.

4. Income from Digital Assets: Net income derived from digital assets, subject to a tax rate of 30%.

5. Other Income: This encompasses any taxable earnings from freelance work or other sources not explicitly mentioned.

6. Exempt Allowances: Comprises allowances such as HRA, LTA, Professional Tax, and any other exemptions applicable under tax laws.

7. Interest on Home Loan - Self Occupied: Represents the interest portion paid on a housing loan taken for a self-occupied property.

8. Interest on Home Loan - Let Out: Denotes the interest paid on a housing loan taken for a property that is rented out.


Deduction Categories:

1. Basic Deductions (80C): Refers to the amount invested or paid towards tax-saving instruments such as Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) mutual funds, LIC premium, etc., with a maximum limit of 1.5 lakhs.

2. Medical Insurance (80D): This encompasses medical insurance premiums and fees for preventive health check-ups paid for self, family, and dependent parents.

3. Interest on Educational Loan (80E): Represents the interest paid on loans taken for higher education.

4. Employee's Contribution to NPS (80CCD): Includes voluntary contributions made to the National Pension Scheme (NPS) under sections 80CCD(1) and 80CCD(1B).

5. Interest from Deposits (80TTA): Denotes interest income earned on deposits in savings accounts, including fixed and recurring deposits, with specific considerations for senior citizens.

6. Donations to Charity (80G): Refers to amounts contributed as donations to charitable institutions or recognized funds.

7. Interest on Housing Loan (80EEA): Represents interest paid on housing loans sanctioned during the fiscal year 2022-2023, with a maximum cap of 1.5 lakhs.

8. Standard Deduction: Standard deductions allowed up to Rs. 50,000.

It's crucial for us to adapt our financial strategies in light of these changes to optimize our tax liabilities while maintaining compliance with the regulatory framework.

Please ensure that all relevant departments and personnel are duly informed about these modifications, and take necessary actions to integrate them into our financial planning and reporting processes.

Salaried taxpayers are entitled to a standard deduction of Rs. 50,000 under both the old and new tax regimes. Read New Implemented Tax Regime.