How much income tax
will you pay?

India’s new tax regime is now the default from FY 2024-25 onwards. It has lower slab rates but removes most deductions and exemptions — HRA, LTA, 80C investments, home loan interest, and most others no longer apply. The old regime, which can still be opted into, allows these deductions but has higher slab rates. For most salaried employees with income below ₹15 lakh and limited deductions, the new regime typically results in lower tax. For those with large 80C investments, home loans, and HRA, the old regime may still be better.

The rebate under Section 87A is one of the most searched topics in Indian income tax. Under the new regime, if your total taxable income is ₹7 lakh or below, your tax liability is fully rebated to zero. This means effective tax is nil on incomes up to ₹7.75 lakh (after the ₹75,000 standard deduction). This rebate is a threshold effect — earning even ₹1 above ₹7 lakh means the full slab tax applies with no rebate.

This calculator gives a planning estimate. Actual tax liability depends on your final salary breakup, other income sources (rental, capital gains, interest), employer-provided benefits, deductions claimed, and whether you opt for old or new regime. Always verify the final number on the official income tax portal (incometax.gov.in) or with a chartered accountant before filing, especially if you have multiple income sources or significant investments.