Free India Old Regime Tax Calculator

 

How to Use the India Old Regime Tax Calculator

Welcome to our comprehensive guide on how to use our India Old Regime Tax Calculator. This tool is designed to help you easily calculate your income tax based on the old tax regime, allowing you to take advantage of various deductions and exemptions. Follow this step-by-step guide to accurately estimate your tax liability.

Step 1: Enter Your Total Income

Label: Total Income (INR)

Description:

• Enter your total annual income before any deductions. This includes your salary, income from other sources like interest or rental income, and any capital gains.

Example: If your annual salary is ₹10,00,000, and you have an additional ₹2,00,000 from other sources, enter 1200000.

Step 2: Enter Your House Rent Allowance (HRA) Exemption

Label: House Rent Allowance (HRA) Exemption (INR)

Description:

• Enter the amount of HRA exemption you are eligible for. The HRA exemption is the least of the following:
  1. Actual HRA received.
  2. 50% of (basic salary + DA) for those living in metro cities (40% for non-metro cities).
  3. Actual rent paid minus 10% of (basic salary + DA).

Example: If your HRA exemption calculation amounts to ₹1,00,000, enter 100000.

Step 3: Enter Your Deductions Under Section 80C

Label: Deductions under Section 80C (INR)

Description:

• Enter the total amount you have invested in instruments eligible for deduction under Section 80C. The maximum allowable deduction under this section is ₹1,50,000.
• Common investments include PPF, EPF, NSC, life insurance premiums, and principal repayment of home loans.

Example: If you have invested ₹1,50,000 in eligible instruments, enter 150000.

Step 4: Enter Your Deductions Under Section 80D

Label: Deductions under Section 80D (INR)

Description:

• Enter the amount you have paid towards health insurance premiums for yourself, your family, and your parents.
• The maximum allowable deduction is ₹25,000 for yourself and family (₹50,000 for senior citizens).

Example: If you have paid ₹20,000 towards health insurance premiums for yourself and ₹30,000 for your parents, enter 50000.

Step 5: Enter Your Other Deductions

Label: Other Deductions (INR)

Description:

• Enter any other deductions you are eligible for, such as those under Sections 80G (donations), 80E (education loan interest), etc.

Example: If you have additional deductions amounting to ₹20,000, enter 20000.

Step 6: Calculate Your Tax

Button: Calculate Tax

Description:

• Once you have entered all the required details, click the "Calculate Tax" button to compute your total tax payable. The calculator will automatically apply the standard deduction and the appropriate tax slabs under the old regime.

The below calculator is for educational purpose only and i am not responsible for any financial loss for your monthly salary payout. Kindly cross check with official calculator or registered financial advisor.

Free India Old Regime Tax Calculator FY2024

Income (INR):
Housing Loan Interest (INR):
HRA (INR):
Deductions under Section 80C (INR):
Deductions under Section 80D (INR):
Other Deductions (INR):

Understanding the Results

Output: Total tax payable: INR [amount]

Description:

• The calculator will display the total tax payable after considering all deductions and exemptions.
• It will also factor in the standard deduction of ₹50,000 for salaried individuals.
• The final tax calculation will include a 4% cess on the calculated tax.

Example Calculation :

Let’s walk through an example:

Total Income: ₹12,00,000
Housing Loan Interest Section 24(b): ₹1,50,000

HRA Exemption: ₹0 (since housing loan interest is claimed)
Deductions under Section 80C: ₹1,50,000
Deductions under Section 80D: ₹50,000
Other Deductions: ₹20,000

Calculate Total Deductions:

• Standard Deduction: ₹50,000

• Housing Loan Interest: ₹1,50,000

• Section 80C: ₹1,50,000

• Section 80D: ₹50,000

• Other Deductions: ₹20,000

• Total Deductions: ₹4,20,000

Calculate Taxable Income:

• Total Income: ₹12,00,000

• Total Deductions: ₹4,20,000

• Taxable Income: ₹7,80,000

Understanding the Tax Slabs FY 2024

Under the old tax regime, the income tax slabs for individuals below 60 years are as follows:

1. Income up to ₹2,50,000: No tax (0%)
2. Income from ₹2,50,001 to ₹5,00,000: 5%
3. Income from ₹5,00,001 to ₹10,00,000: 20%
4. Income above ₹10,00,000: 30%

Example Calculation Breakdown

Taxable Income: ₹7,80,000

1. First ₹2,50,000 (0% tax):

   • Tax: ₹0

2. Next ₹2,50,000 (from ₹2,50,001 to ₹5,00,000 at 5% tax):

   • Tax: ₹2,50,000 * 5% = ₹12,500

3. Next portion at 20% tax (from ₹5,00,001 to ₹7,80,000):

   • Here, the remaining taxable income is ₹7,80,000 - ₹5,00,000 = ₹2,80,000
   • Tax on ₹2,80,000 at 20%: ₹2,80,000 * 20% = ₹56,000

So, the breakdown of the tax calculation up to this point is:

1. First ₹2,50,000 @ 0%: ₹0
2. Next ₹2,50,000 @ 5%: ₹12,500
3. Next ₹2,80,000 @ 20%: ₹56,000

Adding these amounts together gives us the total tax before cess:

• Total Tax Before Cess: ₹0 + ₹12,500 + ₹56,000 = ₹68,500

Adding Cess

After calculating the total tax, a 4% cess is applied:

• Cess: 4% of ₹68,500 = ₹2,740

• Total Tax Payable: ₹68,500 + ₹2,740 = ₹71,240

Conclusion

Using our India Old Regime Tax Calculator, you can easily determine your tax liability and plan your finances effectively. Be sure to make the most of all the deductions and exemptions available to you under the old tax regime. For more financial tools and resources, explore our blog and stay informed about the latest in finance and the stock market.