Understanding Income Tax Calculation

This calculator helps you estimate your income tax liability under both the Old and New tax regimes in India for the Financial Year 2023-24 (Assessment Year 2024-25). This allows you to compare and choose the more beneficial regime for your financial situation.

Key Differences:

• Old Regime: Has higher tax rates but allows you to claim numerous deductions and exemptions like HRA, LTA, and those under Section 80C, 80D, etc.
• New Regime: Has lower tax rates but you cannot claim most of the common deductions. A standard deduction of ₹50,000 is available under both regimes for salaried individuals.

Disclaimer: This is a simplified calculator for illustrative purposes only. Tax laws are subject to change. Please consult a financial advisor for exact calculations.