Tax season can be stressful for many people, fearing not paying the correct taxes or facing penalties and fines. However, the Income Tax Calculator can help ease some of that stress. In this article, you will prepare how to use the Income Tax Calculator for FY 2024-25 to calculate our tax correctly. This tool will help you avoid extra trouble when paying the correct taxes. So let's get started!

Income tax is a direct collection of income any individual, business, or organisation earns. It is worked out based on income received from April of a particular year to March of the following year. Income tax rates depend on the income generated, and those with high incomes pay a higher tax rate

Another taxation element is gross income, which considers certain adjustments and, consequently, income before tax is arrived at by deducting allowable deductions and exemptions from the total revenue. Loops that can be claimed under the Income Tax Act Sections such as 80 C, 80D and several others enable an individual to reduce his taxable money. 

Exemptions exist for certain kinds of income, such as agriculture or dividends. Total income means all income, such as salary, business, and capital gains. With the help of simple online tools such as the tax calculator 2024 new regime or the income tax 2024-25 calculator, you can quickly determine the amount of income tax calculated based on the actual situation, including the deductions and exemptions.

An online income tax calculator is an excellent tool that enables a person to measure the tax amount they would be required to pay according to the latest Union Budget for the financial year. Whether it is the income tax your employer withholds each month or is filed by you through the IT returns filing facilitated by the Central Board of Direct Taxes (CBDT), the income tax calculator helps you out. Just fill in the necessary fields on the page, and the unique calculator will show you how much money you still have to pay the government. 

The users looking for the new tax-free tax regime calculator for the financial year 2024-25 will get a clear idea of their taxation burden in the new tax regime. To that end, there is a tax calculator for the old scheme to determine the taxes based on the previous government. These include the AY 2024-25 income tax calculator, which will help you obtain precise outcomes. The reward consists of engaging options, such as the NSC calculator or the income tax calculator under the new regime, to consider specific scenarios. 

Calculating your income tax might be quite taxing! Here are 4 easy steps to calculate your income tax easily:

Step 1: Calculating Your Gross Income

Step 2: Calculate Net Taxable Income

Step 3: Tax Slab Based on Net Taxable Income

Step 4: Calculate Taxes

Step 5: Consolidate Net Taxes

The income tax rate varies based on the income earned during the financial year. The government revises the tax slabs and rates every year in the Union budget. Here are the tax slabs under the old regime for the financial year 2023-24.

Here are the tax slabs under the new regime for the financial year 2023-24.

According to the new tax regime:

According to the old tax regime:

The income tax rate varies based on the income earned during the financial year. The government revises the tax slabs and rates every year in the Union budget. Here are the tax slabs under the old regime for the financial year 2023-24.

According to the new tax regime:

According to the old tax regime:

The recent 2023 budget has quite caused a lot of confusion amongst taxpayers. As of now in India, there are two ways to calculate income tax: you can pay tax using the old tax regime or the new tax regime. The choice totally depends on your income, age, and preferences. 

We've listed out below the income tax slab rates for individuals below 60 years, senior citizens (60-80 years), and super senior citizens (above 80 years) in both the new and old tax regimes presented in a more compact format:

Individuals (Below 60 years):

Senior Citizens (60-80 years):

Super Senior Citizens (Above 80 years):

Please note that these tax rates are applicable for the assessment year 2024-25 in India and the rates can differ based on your chosen tax regime and age group.

Still not sure whether you are eligible to file your income tax? We’ve listed below some of the key eligibility criteria for filing your income tax:

Income tax exemptions offer essential relief to the taxpayer. You get to subtract specific amounts from your total" Income". These are significant segments of the tax system and provide several opportunities to reduce the amount of tax to be paid legally. That is why you should take adequate time to look into these options naturally to minimise the tax you pay and optimise your savings.

Investing and saving for taxes is one of the best ways to minimise your income tax bill within the shortest possible time. Here are some of the investments that people want to save taxes through.

This investment plan offers risk-free returns for the long term, and income taxpayers can get deductions up to ₹ 1 00,000 under section 80 C. The investment made in the scheme is locked for 15 years, and the maximum amount that can be invested in the financial year is ₹ 1.5 lakh.

Check out PPF Calculator: https://www.acko.com/calculators/ppf-calculator/

This is an investment plan in which more than 50% of the corpus is invested in shares and qualifies for section 80C Tax Benefits. The lock-in period of this scheme is three years, and you can invest up to ₹1.5 lakh per year. ELSS carries a higher risk than conventional tax saving instruments but ideally can give better returns than them.

NPS is a retirement saving investment scheme that provides tax incentives under sections 80C and 80CCD of the Income Tax Act. It cannot be withdrawn before retirement, and one can invest from 10% of their salary or up to ₹1.5 lakh annually. The participation options available for investment include equity, debt and government securities at NPS.

Check out the NPS Calculator: https://www.acko.com/calculators/nps-calculator/

ULIP combines an insurance plan and an investment plan wherein you are eligible for tax exemptions under section 80C. The product can be locked in for 5 years, and investments up to ₹ 1,50,000 can be made in a year. The new ULIPs available today can provide enhanced returns compared to conventional insurance products but come with implicit risk.

Apart from tax-saving investments, there are other strategies you can use to reduce your income tax liability. Here are some of the most effective tax planning strategies.

Here are some of the most common deductions available to taxpayers.

If you have a spouse or children with a lower income than you, consider splitting your income with them. This can be done by giving them money or investing in their name, which can reduce your overall tax liability.

If you receive House Rent Allowance (HRA) or Leave Travel Allowance (LTA) as part of your salary, you can claim tax benefits on these allowances. You can claim HRA  for the rent paid and LTA for the expenses incurred during travel within India.

The new Income Tax Calculator for FY 2024-2025 helps taxpayers calculate their taxes through the latest and previous regime of tax slabs. That means taxpayers can directly input their income information and any applicable deduction or exemption to determine the amount of tax due. This tool effectively simplifies your taxes and also assists you in making better decisions vis-a-vis investment and savings. Whether you're an individual, senior citizen, or business owner, the income tax calculator 2024-25 ensures that you file your tax returns efficiently while minimising your tax liability.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.