Income tax is a direct tax imposed by the government on the income of individuals and entities within its jurisdiction. It is a primary source of revenue for the government and is used to fund public services and infrastructure.

Who are the Tax Payers?

Taxpayers are individuals, businesses, or entities that are legally obligated to pay income tax to the government based on their earnings or profits.

What is Income Tax Return (ITR)?

Income Tax Return (ITR) is a form used by taxpayers to report their income, calculate the tax liability, and provide details of deductions and exemptions. Filing an ITR is a legal obligation for individuals and entities meeting certain income criteria.

What is the old tax regime?

The old tax regime refers to the traditional income tax structure with various deductions and exemptions. Taxpayers can choose between the old and new tax regimes based on their preference and financial circumstances.

What is the new tax regime?

The new tax regime is a simplified income tax structure with reduced tax slabs and fewer deductions and exemptions. It offers taxpayers an alternative to the old tax regime, allowing them to choose based on their financial situation.

Tax-saving refers to the strategies and investments individuals can make to reduce their taxable income. This often involves utilizing deductions and exemptions provided by the tax laws.

How to Calculate Income Tax?

Income tax is calculated by applying the applicable tax rate to the taxable income after accounting for deductions and exemptions. The specific calculation depends on the chosen tax regime and the individual's financial situation.

What is the Income Tax Act, 1961?

The Income Tax Act, 1961 is the primary legislation governing income tax in India. It outlines the rules, regulations, and provisions related to the assessment and collection of income tax.

How is Income Tax Collected?

Income tax is collected through various means, including advance tax payments, tax deducted at source (TDS), and self-assessment tax. Employers, financial institutions, and individuals are responsible for deducting and remitting the tax to the government.

e-tax payment: How to pay income tax online?

Taxpayers can pay income tax online through the official website of the income tax department or authorized banks. E-payment methods include internet banking, debit/credit cards, and online tax payment portals.

On which income tax is not applicable?

Certain incomes, such as agricultural income up to a certain limit and gifts from specified relatives, may be exempt from income tax. However, the specific exemptions vary.

What is the limit of filing income tax?

The income tax filing limit depends on the individual's age, income level, and other factors. It is advisable to check the latest guidelines from the tax authorities for the current financial year.

Who cannot pay income tax?

Individuals below the taxable income threshold, agricultural income recipients within specified limits, and certain other categories may be exempt from paying income tax. However, everyone is required to file returns if their income exceeds the specified limits.

When was the new tax regime introduced?

The new tax regime was introduced in the Union Budget and came into effect from the financial year 2020-21 onwards.

Is filing income tax returns compulsory?

Yes, filing income tax returns is mandatory for individuals and entities meeting the prescribed income thresholds, even if they fall within exempt categories.

How to file income tax online?

Taxpayers can file income tax online through the official income tax e-filing portal by filling out the appropriate ITR form and submitting it electronically.

How to opt for the new tax regime?

Taxpayers can opt for the new tax regime while filing their income tax returns. The option must be exercised annually at the time of filing returns.

Can we change the tax regime every year?

Yes, taxpayers have the flexibility to switch between the old and new tax regimes each financial year based on their financial situation and preferences.

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Income Tax Calculator

Income tax is a direct tax mandated by the Government of India (GoI). This tax applies to individuals, Hindu Undivided Families (HUFs), and businesses based on their respective earnings and profits. Governed by the Income Tax Act, 1961, this legislation delineates the rules and regulations surrounding income tax in the country.

Income Tax Calculation

Paying income tax is a civic responsibility of all citizens as it plays a crucial role in building and maintaining a well-functioning society. The amount you pay in income tax is determined by your income level, with various deductions and exemptions available. Navigating the complexities of income tax can be a daunting task, and that's why we have build this income tax calculator for you.

How Income Tax Calculator Can Make Things Easier For You?

Efficiency: Say goodbye to manual calculations and complex formulas. Our income tax calculator automates the process, delivering quick and accurate results.
Financial Planning: By estimating your tax liability, you gain insights into your financial situation. This empowers you to plan ahead, make informed decisions, and optimize your tax strategy for maximum benefits.
Maximizing Returns: Discover potential deductions and credits you might have overlooked. Our income tax calculator helps you identify opportunities to minimize your tax burden and maximize your returns.
User-Friendly: Designed with simplicity in mind, this calculator is user-friendly and can simplify your tax calculations.

Income Tax Slabs

The income tax slabs in India are divided into two categories - Old Tax Regime and New Tax Regime. Under the old tax regime, individual taxpayers are classified into different age groups. The income tax slabs for individuals below 60 years of age is provided below:

Old Income Tax Regime
Slab (Rs. In lacs)	Tax Rate
Upto 2.5	Nil
2.5 to 5	5%
5 to 10	20%
Above 10	30%

The new tax regime, introduced in the Union Budget 2020, offers reduced tax rates but eliminates most of the exemptions and deductions. The income tax slabs for individuals below 60 years of age under the new regime are as follows:

New Income Tax Regime
Slab (Rs. In lacs)	Tax Rate
Upto 4	Nil
4 to 8	5%
8 to 12	10%
12 to 16	15%
16 to 20	20%
20 to 24	25%
Above 24	30%

Budget 2025: Major Announcements & New Income Tax Slabs Explained

Finance Minister Nirmala Sitharaman introduced significant reforms in the new income tax regime, unveiling revised tax slabs and rates aimed at salaried individuals, taxpayers, and the middle class. The most notable announcement was that individuals earning up to Rs 12 lakh will now be exempt from income tax, providing a major relief to the common man.

Latest Income Tax Slabs for FY 2025-26 Under the New Regime

Effective from the assessment year 2026-27, the proposed amendments under clause (iii) of sub-section (1A) of section 115BAC of the Income Tax Act will determine tax rates for individuals, Hindu Undivided Families (HUFs), associations of persons (excluding co-operative societies), bodies of individuals (whether incorporated or not), and artificial juridical persons as per subclause (vii) of clause (31) of section 2.

Income Tax FAQs

What is Income Tax?
Income tax is a direct tax imposed by the government on the income of individuals and entities within its jurisdiction. It is a primary source of revenue for the government and is used to fund public services and infrastructure.
Who are the Tax Payers?
Taxpayers are individuals, businesses, or entities that are legally obligated to pay income tax to the government based on their earnings or profits.
What is Income Tax Return (ITR)?
Income Tax Return (ITR) is a form used by taxpayers to report their income, calculate the tax liability, and provide details of deductions and exemptions. Filing an ITR is a legal obligation for individuals and entities meeting certain income criteria.
What is the old tax regime?
The old tax regime refers to the traditional income tax structure with various deductions and exemptions. Taxpayers can choose between the old and new tax regimes based on their preference and financial circumstances.
What is the new tax regime?
The new tax regime is a simplified income tax structure with reduced tax slabs and fewer deductions and exemptions. It offers taxpayers an alternative to the old tax regime, allowing them to choose based on their financial situation.
What is tax saving?
Tax-saving refers to the strategies and investments individuals can make to reduce their taxable income. This often involves utilizing deductions and exemptions provided by the tax laws.
How to Calculate Income Tax?
Income tax is calculated by applying the applicable tax rate to the taxable income after accounting for deductions and exemptions. The specific calculation depends on the chosen tax regime and the individual's financial situation.
What is the Income Tax Act, 1961?
The Income Tax Act, 1961 is the primary legislation governing income tax in India. It outlines the rules, regulations, and provisions related to the assessment and collection of income tax.
How is Income Tax Collected?
Income tax is collected through various means, including advance tax payments, tax deducted at source (TDS), and self-assessment tax. Employers, financial institutions, and individuals are responsible for deducting and remitting the tax to the government.
e-tax payment: How to pay income tax online?
Taxpayers can pay income tax online through the official website of the income tax department or authorized banks. E-payment methods include internet banking, debit/credit cards, and online tax payment portals.
On which income tax is not applicable?
Certain incomes, such as agricultural income up to a certain limit and gifts from specified relatives, may be exempt from income tax. However, the specific exemptions vary.
What is the limit of filing income tax?
The income tax filing limit depends on the individual's age, income level, and other factors. It is advisable to check the latest guidelines from the tax authorities for the current financial year.
Who cannot pay income tax?
Individuals below the taxable income threshold, agricultural income recipients within specified limits, and certain other categories may be exempt from paying income tax. However, everyone is required to file returns if their income exceeds the specified limits.
When was the new tax regime introduced?
The new tax regime was introduced in the Union Budget and came into effect from the financial year 2020-21 onwards.
Is filing income tax returns compulsory?
Yes, filing income tax returns is mandatory for individuals and entities meeting the prescribed income thresholds, even if they fall within exempt categories.
How to file income tax online?
Taxpayers can file income tax online through the official income tax e-filing portal by filling out the appropriate ITR form and submitting it electronically.
How to opt for the new tax regime?
Taxpayers can opt for the new tax regime while filing their income tax returns. The option must be exercised annually at the time of filing returns.
Can we change the tax regime every year?
Yes, taxpayers have the flexibility to switch between the old and new tax regimes each financial year based on their financial situation and preferences.