Income Tax Calculator

Section 87A gives a full rebate on tax payable — bringing tax to zero — when total taxable income is at or below a threshold. Under the new regime that threshold is ₹12,00,000 (so a salaried person earning up to ₹12.75 L pays zero tax after the ₹75,000 standard deduction). Under the old regime the threshold is ₹5,00,000. In the new regime a marginal-relief provision cushions the cliff just above ₹12,00,000 — your tax is capped at the amount by which taxable income exceeds ₹12 L (so ₹12,10,000 taxable pays about ₹10,400, not the full slab tax), phasing out near ₹12.7 L. The old regime has no such relief: past ₹5 L the full slab tax applies.

The choice depends on your deductions. If your 80C + 80D + HRA + home-loan interest + NPS deductions add up to more than roughly ₹3.5–4 Lakh, the old regime usually wins at moderate income. Below that, the new regime almost always wins because the lower slab rates beat the missing deductions. The side-by-side comparison above shows your specific numbers under both regimes — pick whichever total tax is lower.

The standard deduction is a flat amount that salaried individuals (and pensioners) can subtract from gross income before tax is computed — no proof needed, no specific expense required. Under the new regime it is ₹75,000; under the old regime it is ₹50,000. This calculator applies it automatically and shows it in the deduction breakdown.

Surcharge is an extra percentage tax levied on the tax amount, not on income. Slabs: 10% when total income exceeds ₹50 Lakh, 15% above ₹1 Crore, 25% above ₹2 Crore. A 37% rate exists only in the old regime above ₹5 Crore — the new regime caps surcharge at 25%. Marginal relief provisions may reduce surcharge slightly when income just crosses a threshold; this calculator uses the simple slab method.

The cess is a 4% surcharge levied on the sum of basic income tax plus surcharge. Its proceeds are earmarked for health and education spending by the central government. It applies to all taxpayers under both regimes, regardless of income level — even on tax amounts after rebate u/s 87A (though if the rebate brings tax to zero, the cess is also zero because 4% of zero is zero).