Income Tax Calculator

It depends on how much you can claim in deductions versus how much your income benefits from the New Regime's lower rates and bigger rebate. The Old Regime has higher slab rates but lets you reduce taxable income through Section 80C (PPF, ELSS, EPF, life insurance, up to ₹1.5 lakh), Section 80D (health insurance), HRA, Leave Travel Allowance, and home loan interest under Section 24 (up to ₹2 lakh). The New Regime — now the default — offers lower rates and a much larger Section 87A rebate (up to ₹60,000, making income up to ₹12 lakh effectively tax-free), but it drops almost all of those deductions, keeping only the ₹75,000 standard deduction. As a general guideline: if your total eligible deductions under the Old Regime exceed roughly ₹4–4.5 lakh, the Old Regime may still come out ahead at higher income levels — but for most salaried taxpayers earning up to ₹12–15 lakh with average deductions, the New Regime now usually results in lower or equal tax. Run both calculations with your actual numbers, since the right answer changes with income level and how much you actually invest.

Most legal tax-reduction options are available only under the Old Regime. Start with the ₹1,50,000 cap under Section 80C — ELSS mutual funds, PPF, or EPF contributions all qualify. Beyond that, you can claim an extra ₹50,000 for voluntary NPS contributions under Section 80CCD(1B), separate from the 80C limit. Health insurance premiums reduce taxable income by up to ₹25,000 for yourself and your family, plus an additional amount for senior citizen parents, under Section 80D. If you're repaying a home loan, you can deduct up to ₹2 lakh of interest paid under Section 24(b). If you've opted for the New Regime instead, your main legal levers are the ₹75,000 standard deduction and structuring your salary to make use of employer NPS contributions under Section 80CCD(2), which remains available even under the New Regime.

Section 87A gives eligible taxpayers a full or partial waiver of tax, and the rules differ sharply by regime. Under the Old Regime, if your net taxable income (after all deductions) stays at or below ₹5,00,000, you get a rebate of up to ₹12,500, bringing your tax to zero. Under the New Regime, the rebate is far larger: a net taxable income up to ₹12,00,000 qualifies for a rebate of up to ₹60,000, which — combined with the ₹75,000 standard deduction — effectively makes salaried income up to ₹12.75 lakh tax-free. If your income crosses these thresholds by even a small amount, you don't lose the rebate entirely; marginal relief kicks in so that the extra tax you owe is capped at the amount your income exceeds the threshold by, rather than jumping to the full slab-rate tax. One exception: the rebate doesn't apply to income taxed at special rates, such as long-term or short-term capital gains on equity.

Yes. Interest from fixed deposits and recurring deposits is fully taxable as 'Income from Other Sources' and is added to your total income, then taxed at your applicable slab rate — there's no special lower rate for FD interest. Banks deduct TDS if your total interest income from all branches and deposits exceeds ₹40,000 in a financial year (this threshold is higher for senior citizens). If your total taxable income is below the exemption threshold for your regime, you can avoid this TDS deduction by submitting Form 15G (for individuals under 60) or Form 15H (for senior citizens) to your bank at the start of the financial year, rather than waiting to claim a refund later.

Missing the standard ITR filing deadline (usually July 31st for most individual taxpayers) triggers consequences under two separate sections. Under Section 234F, a late filing fee of up to ₹5,000 applies, reduced to ₹1,000 if your total income is below ₹5,00,000. Separately, under Section 234A, any unpaid tax accrues interest at 1% per month (or part of a month) from the due date until you actually file. Filing late also blocks you from carrying forward certain losses — like business or capital losses — to offset against future years' profits, and if you're owed a refund, it gets delayed without the usual interest benefit that applies to timely-filed returns.

Yes, and this is a commonly overlooked benefit under the Old Regime. You can claim both simultaneously if your real living situation supports it — for example, if you own a home in one city (perhaps your hometown, where you've taken a loan) but live in rented accommodation in a different city for work. To claim both safely, be prepared to show that the arrangement is genuine: keep your rent receipts and rental agreement for the HRA claim, and your home loan interest certificate from the lender for the Section 24 claim. If the owned property is vacant or let out rather than self-occupied, the rules for how much interest you can deduct differ slightly, so it's worth checking the specific treatment for your situation before filing.