TAX CALCULATOR FY 2024-25

INCOME TAX CALCULATOR INDIA

TAX CALCULATOR 2024 - ESTIMATE YOUR INCOME AND TAX LIABILITY

( TAX CALCULATOR FOR AY 2025-26 ( FY 2024-25 )

BEFORE GOING TO THE TAX CALCULATOR :

1. Estimate your expected total income including salary, interest or any other income for the current year April 2024 to March 2025. Please note that interest on Fixed Deposits / Recurring Deposits is to be included . Also Note the dividends received by you are also to be included in your annual income from FY 20-21 onward .

2. Take stock of payments like Provident Fund paid payable by your employer,, Insurance Premium you have paid or any other instrument you have purchased or are to be purchased which is eligible for Tax concession under the old tax regime. Collect the details of Housing loan and education loan installments to be paid during the year and interest paid/payable for them for the year.

3. Now you can estimate your income tax using either the e-filing website or calculator tool both provided by the income tax department.

4. In the e-filing website, you can estimate your tax either by logging- into your PAN account or without logging in .

5. Advantage of using e-filing website , the website gives the estimate in both the old regime and new regime simultaneously and hence you need not calculate twice .
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CALCULATE THE INCOME TAX EASILY

Estimate your income tax through e-filing website of income tax department

ESTIMATING INCOME TAX IN E-FILING WEBSITE WITHOUT LOGGING IN :

1. Go to e-filing website by clicking here

​2. Click on the " Income tax Calculator " in the quick links.

​3. Now you can either use " Basic calculator " or " Advanced calculator "

4. BASIC CALCULATOR: Just enter the details

a. Assessment year
b . Residency status
c. Senior citizen status
d. total income estimated
e. Total deductions estimated.

You will get the estimated income tax both under the old tax regime and the new tax regime. It will give you a rough idea of the tax you may have to pay in the current year.

5. ADVANCED CALCULATOR :

Enter the following details

a. Old tax regime or new tax regime
b. Assessment year
c . Residency status
d. Senior citizen status
e. Fill in your income details
i) Interest from Saving bank account
(ii) Other Interest Income
(iii) Winning from the Lottery, crossword puzzles etc.
(iv) Any other income

f : Fill in the details of the deductions:
1. Deductions u/s 80C (LIC, PF, PPF, NSC, Repayment of Housing Loan, etc.)
2. Deduction u/s 80CCC (Payment in respect to Pension Fund)
3. Deductions u/s 80CCD(1) (Employee’s / Self-employed contribution towards NPS)
4. Deductions u/s 80CCD (1B) (Additional Employee’s contribution towards NPS)
5. Deductions u/s 80CCD (2) (Employers contribution towards NPS)

Total
6. Deductions u/s 80D (MediClaim Premium)
7. Deductions u/s 80G (Donations)
8. Deductions u/s 80E (Interest on Loan for Higher Education)
9. Deductions u/s 80EE (Interest on Loan taken for Residential House)
10. Deductions u/s 80TTA (Interest on Savings Bank Account)
11. Deductions u/s 80TTB (Interest on Deposits)
12. Any other deduction
Now you will get the estimate of your taxable income and Income tax payable.

You may enter TCS / TDS already deducted to know net income tax yet to be payable by you .

ESTIMATING INCOME TAX IN THE E-FILING WEBSITE AFTER LOGGING IN :

​1. Go to e-filing website and login

2. Enter your PAN Number and password , OTP and log-in

3. Go to " Income & Tax estimator " and click

4. Your basic information and TDS / TCS amounts are already filled in

5. Fill in the remaining information on your income and deductions .

6. Click on " Estimate Tax "

7. The system will give the tax payable by you in both old and new regimes simultaneously with detailed analysis .

8. Now you can decide which regime , old or new , is beneficial to you .

9 Try to reduce tax liability by checking whether any other tax deduction you can utilize .

Estimate income tax using tool provided by Income tax Department

Go to Income Tax Department, Govt of India website
https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-act-2023.aspx
and calculate the estimated income tax liability for the current year.

For the FY 2024-25 , just like in earlier years , you have the option to pay income tax under two regimes

1. Under the new simplified tax regime using newly introduced section 115bac of IT act which has lower rates , but without many tax rebates
2. Using old tax regime which was available in Fy 2019-20 with same tax rates and same tax rebates .

You can decide which one to use at the time of submission of IT Returns for FY 2024-25 , BUT YOU HAVE TO GIVE YOUR CHOICE OF OPTION ( which can be changed later ) to your employer if you are a salaried person or a pensioner.

You can calculate Income tax liability under both regimes below and find which is beneficial .

INCOME TAX CALCULATOR OLD REGIME OR INCOME TAX CALCULATOR NEW REGIME

HOW TO CALCULATE WHICH IS BETTER FOR YOU : OLD OR NEW ?

TAX CALCULATION UNDER NEW REGIME

1. Go to the Income Tax Department, Govt of India website
https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-act-2023.aspx
and calculate the estimated income tax liability for the current year
2. Select Assessment Year 2025-26
3. Select your gender or senior citizen status
4. Enter your Residential status
5. Enter your expected salary/pension without ANY DEDUCTION
6. Enter other income like Interest

7. Enter Amount deductible/exempt from Gross Salary (except standard deduction) which is not allowed in the new regime

8. Enter Deductions allowed under both regimes i.e. 80CCH(2), 80CCD(2), 80JJAA, family pension deduction under section 57(iia)

9. Enter Deductions/exemptions (other than mentioned above) not eligible in new tax regime
   
   Now you will have Total Taxable income and your Tax liability under the new regime as well as old regime . Note down the tax liability under the new regime .
   
   ( To opt for the old regime , one has to know the various rebates available and it is the same as in FY 2019-20 . To know all rebates / deductions available , CLICK HERE
   
   Now you will get Total Taxable Income under the old regime and Tax Payable under old regime .
   
   COMPARE :
   Now compare the tax amount between Old regime and New regime and decide whether to opt for old regime or new regime .
   
   You can then inform your employer of your choice. If your employer allows you to file your option on-line, do so . Remember the once you intimate the option to your employer, it cannot be revoked. But you may select a new option while filing IT Returns.
   
   If you opt for old regime, you have to inform your employer the details of the investments made in tax saving instruments also . Otherwise TDS will be more than the TDS under new regime .

NOTES :

1. For tax rates and various concessions available under various sections of Income Tax act , CLICK HERE . Verify whether you can utilize any of the concessions and the amount you can invest to avail maximum concession under the each section .

2. While purchasing insurance policy or any other financial instrument like pension plan, mutual fund etc. discuss with the financial advisors / consultants / agents etc who are selling the product regarding the tax concessions available specifically for the instrument in question and reconfirm by going to the website of the issuer .Some advisors/consultants who have their interest in selling these products may mis-inform you about the concessions available .

3. Verify such concessions are useful to your tax plan and you can make use of such concession for the present year .

4. Beware of the instruments like unit linked policies , ELSS etc which are linked to market performance . Such instruments will perform only when stock markets. perform . Some times long terms returns are shown with illustrative rates which may look lucrative . Please remember that those rates are only illustrative and the such returns may become illusive if Net Asset Value ( NAV ) does not grow and if sellers do not guarantee the return . Know the risks of investing in such high risk products .
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5. If instruments warrant repetitive payments say monthly or annually , please check your financial position with regard to affordability of the product for you for long term .
6. After making all the payments and investments and after getting the total income correctly calculated , you can go again to income tax Dept site and arrive final tax liability .

7. If you are eligible to submit form 15H or 15G to the banks, do it well in time, preferably at the beginning of the financial year or immediately now , for avoiding TDS on interest paid by the bank.

8. Keep the records of all your financial transactions . Money borrowed from friends , Jewelry inherited/purchased ,Gifts received, wedding expenditures, cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE , an assessing officer can invoke 60 % tax ,15 % surcharge ,3 % cess with an added penalty of 10 % .To avoid such hefty payment of tax , keep records of your transactions to enable yourself to explain sources of funds .

9. For authentic details of all the matters relating to Income tax ,go to the website of Income Tax Department ,Government of India :http://www.incometaxindia.gov.in/

Income Tax calculator on salary arrears :

CALCULATE TAX RELIEF FOR SALARY ARREARS UNDER SECTION 89(1)

HOW TO CALCULATE RELIEF ON TAX ARREARS UNDER SECTION 89 (1 ) :

​ Let us assume that you have received arrears in the Financial year 2024-25 . The arrears pertain to salaries of FY 21-22 , 22-23 and 23-24 . Then
1. Calculate Income tax on salary with arrears for the FY 2024-25 Say the income tax is A
2. Calculate Income tax on salary for the year FY 24-25 after reducing the arrears pertaining to FY 21-22 , 22-23 and for the FY 2023-24 . Say the income tax is B
3. The difference is extra tax payable by you for fy 2024-25 is C = A - B
4. Now note down the income tax already paid for earlier years with your income without arrears . Say you have paid Income tax D for FY 2021-22 , E for FY 22-23 & F for FY 23-24. Total Tax paid earlier is D+ E+ F = H
5. Add the income arrears pertaining to each earlier years to your income reported and calculate taxes for each year and say the new tax payable is I for FY 21-22 , J for FY 22-23 & K for FY 23-24 . Total tax payable now for earlier years is I+ J+ K = L
6. The additional tax payable on account of arrears for previous years is M = L- H

Now under rule 21A , you can chose either C or M whichever is beneficial to you . That means either you can pay total tax of A or
B+ M whichever is beneficial .

To know about rules for tax relief on salary arrears , you may go HERE

ADVANCE TAX CALCULATOR

ESTIMATE AND PAY ADVANCE TAX

Under Section 208 of Income-tax Act, every assessee is required to pay advance tax if the tax liability for the previous year exceeds ten thousand rupees. The Tax payable during the financial year itself is called Advance Tax .For individuals with salary as sole source of income ,TDS is to deducted by the employer during disbursal of salary and hence question of paying advance tax separately may not arise. One has to include the income from interest , capital gain , rent etc while calculating advance tax payment .

THIS ARTICLE CARRIES INFORMATION ON VARIOUS TAX PROVISIONS WHICH ARE GENERALLY USEFUL .YET IT DOES NOT CARRY ALL THE PROVISIONS AND HENCE YOU ARE ADVISED TO GO THROUGH INCOME TAX DEPARTMENT WEBSITES FOR AUTHENTIC COMPLETE INFORMATION , ESPECIALLY FOR THOSE WHO HAVE GOT MULTIPLE STREAMS OF INCOME OR COMPLEX INVESTMENTS . YOU MAY ALSO CONSULT A QUALIFIED TAX CONSULTANT / CHARTERED ACCOUNTANT FOR ANY CLARIFICATION. READERS ARE ALSO WELCOME TO SEND FEEDBACK , FORM AVAILABLE BELOW . WE ARE OPEN FOR CORRECTION IF NEEDED