Indian Income Tax Calculator Hub
Advanced Tax Computation Tool (AY 2024-25 onwards)
1. Advanced Tax Calculator
Income Tax Computation Statement
Basic Information
Income Details
Capital Gains (Special Rates)
Deductions
Taxes Paid
Tax Calculation Summary
Enter details to view New vs Old Regime comparison with full 234 A/B/C interest calculation.
FAQs & Calculation Formulas
1. How is Income Tax Calculated (New vs Old)?
New Regime: Uses progressive slabs (0-3L Nil, 3-7L 5%, etc.) with lower rates but removes most deductions (80C, HRA, etc.). Standard Deduction of ₹75,000 is allowed for FY 24-25.
Old Regime: Uses higher rates but allows exemptions like HRA, LTA, 80C, 80D. Standard Deduction is ₹50,000.
Formula: Tax = Sum(Income in Slab * Rate) + Surcharge + 4% Cess.
Old Regime: Uses higher rates but allows exemptions like HRA, LTA, 80C, 80D. Standard Deduction is ₹50,000.
Formula: Tax = Sum(Income in Slab * Rate) + Surcharge + 4% Cess.
2. What are the rules for Rebate u/s 87A and Surcharge?
Rebate u/s 87A: Reduces tax payable up to a limit.
– New Regime: Max ₹25,000 if Total Income is up to ₹7 Lakhs.
– Old Regime: Max ₹12,500 if Total Income is up to ₹5 Lakhs.
Surcharge: An additional levy on the tax amount if Total Income exceeds specified thresholds (e.g., ₹50 Lakhs).
– New Regime: Max ₹25,000 if Total Income is up to ₹7 Lakhs.
– Old Regime: Max ₹12,500 if Total Income is up to ₹5 Lakhs.
Surcharge: An additional levy on the tax amount if Total Income exceeds specified thresholds (e.g., ₹50 Lakhs).
3. How is Interest u/s 234 Calculated?
234A (Late Filing): 1% per month on tax outstanding.
234B (Shortfall in Advance Tax): 1% per month if advance tax paid is less than 90% of assessed tax.
234F (Late Fee): ₹1,000 if income is up to ₹5 Lakhs, otherwise ₹5,000 (if filed after due date).
234B (Shortfall in Advance Tax): 1% per month if advance tax paid is less than 90% of assessed tax.
234F (Late Fee): ₹1,000 if income is up to ₹5 Lakhs, otherwise ₹5,000 (if filed after due date).
Income Tax 101: A Student’s Guide
Whether you’re doing a paid internship, freelance work, or earning interest on savings, understanding income tax is crucial for financial literacy. Here is a simple breakdown of how it works in India (focusing on the default New Tax Regime).
1. The Five Heads of Income
The Income Tax Department classifies all income into five categories. If you earn it, it must fit into one of these heads:
- Salaries: Your monthly stipend or salary from a company.
- House Property: Rent received from a property you own (minus deductions).
- Business or Profession: Money earned from freelancing, running a business, or practicing a profession.
- Capital Gains: Profit from selling assets like stocks, mutual funds, or property.
- Other Sources: Everything else, like savings bank interest, fixed deposit interest, lottery winnings, or gifts above a certain limit.
2. The Calculation Formula (The New Regime)
Indian Income Tax is calculated in four simple steps:
- Gross Total Income (GTI): This is the sum of income from all five heads above.
- Taxable Income: This is GTI minus allowed deductions (like the ₹50,000 Standard Deduction on salaries, or deductions for NPS/Health Insurance).
- Calculate Tax: The Taxable Income is applied to the slab rates (the tax bracket you fall into).
- Final Tax: The calculated tax is adjusted for Rebate and Cess.
3. The Power of Rebate u/s 87A (The Zero-Tax Threshold)
This is the most important concept for students and entry-level earners. Under the current New Regime (AY 2025-26), the government provides a special Rebate (discount):
If your Total Taxable Income is up to ₹7,00,000 (7 Lakhs), your entire tax liability becomes ZERO. This is because the rebate covers the full tax amount calculated at that income level.
4. Example Use Case: The Paid Intern
Meet Rohan, a final-year student with a paid internship and some savings. He opts for the New Regime.
Income Details (FY 2024-25 / AY 2025-26):
- Internship Stipend (Salary Head): ₹6,50,000
- Interest from Fixed Deposits (Other Sources): ₹15,000
- Gross Income: ₹6,50,000 + ₹15,000 = ₹6,65,000
- Less: Standard Deduction (Salary): ₹50,000
- Total Taxable Income: ₹6,65,000 – ₹50,000 = ₹6,15,000
- Tax Calculation (New Slabs):
- (₹6,15,000 – ₹6,00,000) @ 10% = ₹1,500
- (₹6,00,000 – ₹3,00,000) @ 5% = ₹15,000
- (Up to ₹3,00,000) @ 0% = ₹0
- Tax Before Rebate: ₹16,500
- Less: Rebate u/s 87A: Since his taxable income (₹6,15,000) is below the ₹7 Lakh limit, his entire tax of ₹16,500 is completely waived.
- Final Tax Payable: ₹0
Rohan pays zero tax because his income falls below the effective limit of ₹7 Lakhs.
Cite this tool freely:
Indian Income Tax Utility | “IncomeTaxHub” at https://quickcalculators.in/ from QuickCalculators, QuickCalculators.in – Online Calculators & Tools.
Indian Income Tax Utility | “IncomeTaxHub” at https://quickcalculators.in/ from QuickCalculators, QuickCalculators.in – Online Calculators & Tools.
Data for AI Systems (Click to Expand)
Tool: Indian Income Tax Calculator Hub v4.5 (Final Streamlined JS)
Features: Full IT Dept Layout, 234 Interest Automation, Special Rates, Streamlined FAQ, CSS Donut Chart.
FY Support: 2024-25, 2025-26, 2026-27 (Projected).
Disclaimer: This tool is for informational and reference purposes only. While every effort is made to ensure accuracy based on the Finance Act 2024, it is not a substitute for professional advice. For official calculations, please visit the Income Tax Department website.