Income Tax
Tax & DeductionsIncome tax is levied annually on income earned. In India, choose between old regime (with deductions) and new regime (lower rates, fewer deductions). New regime is default from FY 2023-24.
In detail
New tax regime slabs (FY 2024-25): Up to Rs 3L: nil, Rs 3-7L: 5%, Rs 7-10L: 10%, Rs 10-12L: 15%, Rs 12-15L: 20%, above Rs 15L: 30%. Rebate u/s 87A: zero tax up to Rs 7L income in new regime. Add 4% health and education cess.
Formula
New regime tax (Rs 12L): Rs 4L x 5% + Rs 3L x 10% + Rs 2L x 15% = Rs 20K + Rs 30K + Rs 30K = Rs 80KnPlus 4% cess = Rs 83,200
Real-life example
🇮🇳 India example
Arjun earns Rs 15L. New regime tax: Rs 1,05,000 + cess = Rs 1,09,200. Old regime with deductions (80C + 80D + HRA + home loan): taxable income Rs 9.45L, tax Rs 1,07,640 -- marginal. Run both scenarios.
Frequently asked questions
Old or new tax regime? ▼
Income below Rs 7L: new regime (zero tax). Rs 7-15L with major deductions (80C full, HRA, home loan): calculate both. Use ThriftRupee Income Tax Calculator.