India introduced a new tax regime under Section 115BAC of the Income Tax Act, 1961. This regime offers lower tax rates but requires taxpayers to forgo most common deductions and exemptions available under the old regime. This calculator helps you estimate your tax liability under the new regime based on your taxable income.
New Tax Regime Slabs (FY 2023-24 onwards):
Up to ₹3,00,000: 0%
₹3,00,001 to ₹6,00,000: 5%
₹6,00,001 to ₹9,00,000: 10%
₹9,00,001 to ₹12,00,000: 15%
₹12,00,001 to ₹15,00,000: 20%
Above ₹15,00,000: 30%
Rebate under Section 87A:
A rebate is available for individuals whose total income does not exceed ₹7,00,000 under the new tax regime. This effectively means no tax is payable for incomes up to ₹7,00,000.
Standard Deduction:
For salaried individuals and pensioners, a standard deduction of ₹50,000 is available even under the new tax regime (effective from FY 2023-24). If your income is below ₹50,000, the taxable income will be considered 0 for calculation purposes after applying this deduction.
How this Calculator Works:
1. Enter Taxable Income: Input your total income after considering any applicable deductions like the standard deduction for salaried individuals. If you are salaried, you can enter your gross salary and the calculator will first apply the standard deduction.
2. Tax Calculation: The calculator applies the tax rates based on the income slabs defined for the new tax regime.
3. Rebate Check: It checks if your income is eligible for the Section 87A rebate (income ≤ ₹7,00,000). If eligible, the calculated tax is reduced to zero.
4. Surcharge (if applicable): For very high incomes (above ₹50 Lakhs), a surcharge is applied. This calculator does not include surcharge for simplicity as it's less common for the primary use case of comparing tax regimes.
5. Cess: A 4% Health and Education Cess is added to the calculated tax amount.
Important Note:
This calculator is for estimation purposes only. Tax laws can be complex and subject to change. It's always advisable to consult with a tax professional for personalized advice. This calculator assumes the income entered is after applying the standard deduction if applicable. If you are not salaried, enter your total income directly.
function calculateNewTaxRegime() {
var taxableIncomeInput = document.getElementById("taxableIncome").value;
var taxableIncome = parseFloat(taxableIncomeInput);
var taxResultDisplay = document.getElementById("taxResult");
if (isNaN(taxableIncome) || taxableIncome < 0) {
taxResultDisplay.textContent = "Invalid Input";
return;
}
var tax Payable = 0;
var slab1Rate = 0.05; // 5%
var slab2Rate = 0.10; // 10%
var slab3Rate = 0.15; // 15%
var slab4Rate = 0.20; // 20%
var slab5Rate = 0.30; // 30%
// Apply Standard Deduction for Salaried if the input field is intended for Gross Salary
// For simplicity, this calculator assumes the input 'taxableIncome' is already after standard deduction
// or is total income for non-salaried.
// If you want to add a separate field for standard deduction or gross salary, modify the logic here.
// For now, we'll proceed with the entered 'taxableIncome'.
if (taxableIncome <= 300000) {
taxPayable = 0;
} else if (taxableIncome <= 600000) {
taxPayable = (taxableIncome – 300000) * slab1Rate;
} else if (taxableIncome <= 900000) {
taxPayable = (600000 – 300000) * slab1Rate + (taxableIncome – 600000) * slab2Rate;
} else if (taxableIncome <= 1200000) {
taxPayable = (600000 – 300000) * slab1Rate + (900000 – 600000) * slab2Rate + (taxableIncome – 900000) * slab3Rate;
} else if (taxableIncome <= 1500000) {
taxPayable = (600000 – 300000) * slab1Rate + (900000 – 600000) * slab2Rate + (1200000 – 900000) * slab3Rate + (taxableIncome – 1200000) * slab4Rate;
} else { // Above 15,00,000
taxPayable = (600000 – 300000) * slab1Rate + (900000 – 600000) * slab2Rate + (1200000 – 900000) * slab3Rate + (1500000 – 1200000) * slab4Rate + (taxableIncome – 1500000) * slab5Rate;
}
var cessRate = 0.04; // 4%
var taxWithCess = taxPayable * (1 + cessRate);
// Check for rebate under Section 87A
if (taxableIncome <= 700000) {
taxWithCess = 0;
}
// Format the output to two decimal places and add comma separators for thousands
var formattedTax = taxWithCess.toLocaleString('en-IN', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
taxResultDisplay.textContent = "₹ " + formattedTax;
}