How This Income Tax Calculator Works & Tax Saving Guide
🔍 Understanding Income Tax Calculation
Income tax is calculated on your total taxable income after considering all eligible deductions and exemptions. Our calculator helps you estimate your tax liability for FY 2023-24 (AY 2024-25) based on the latest tax slabs.
Key Components of Tax Calculation:
- Income Sources – Salary, business, capital gains, house property, other sources
- Tax Slabs – New vs old tax regime options
- Deductions – Section 80C, 80D, HRA, LTA, and more
- Rebates – Section 87A for income up to ₹7 lakhs
🧮 How This Tax Calculator Works
This calculator computes your net tax payable after considering:
- Annual Income – Gross salary/business income
- Deductions – Investments under 80C (max ₹1.5L), 80D, etc.
- Exemptions – HRA, LTA, standard deduction (₹50,000)
- Tax Regime – Choose between old and new tax regimes
Tax Calculation Formula:
Taxable Income = Gross Income - (Deductions + Exemptions)
Tax Payable = (Taxable Income × Slab Rate) - Rebates
💡 Top Tax Saving Strategies
- Maximize 80C – Invest in PPF, ELSS, NSC, or pay life insurance premiums
- Health Insurance – Claim up to ₹25,000 under 80D (₹50,000 for seniors)
- HRA Optimization – Provide rent receipts for maximum exemption
- NPS Benefits – Additional ₹50,000 deduction under 80CCD(1B)
📌 Why Use Our Income Tax Calculator?
- Accurate Projections – Updated with latest FY 2023-24 tax rules
- Regime Comparison – Helps choose between old vs new tax regimes
- Deduction Planner – Suggests optimal tax-saving investments
New vs Old Tax Regime Comparison
Feature |
Old Regime |
New Regime |
Basic Exemption |
₹2.5L |
₹3L |
Deductions Available |
All (80C, 80D, HRA etc.) |
Very limited |
Best For |
Those with high deductions |
Those with minimal investments |
Optimize your tax savings and avoid last-minute rush! Calculate your liability now. 💰
Theme: Purple (Finance) |
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