India Income Tax Calculator 2021
Calculate Income Tax for FY 2020-21 (AY 2021-22)
Introduction
🎯 What
India Income Tax Calculator 2021 calculates total income tax payable for individuals based on income, deductions, and selected tax regime (Old vs New).
👥 Who
Salaried employees, self-employed professionals, freelancers, and pensioners.
💡 Why
To estimate income tax liability accurately under Old or New Tax Regime before filing Income Tax Return (ITR).
📝 Basic Details
💰 Income Details
🛡️ Deductions (Old Regime Only)
Max ₹1,50,000
Max ₹2,00,000
🧾 Tax Calculation
Tax Slabs (FY 2020-21)
Old Regime (< 60 yrs)
- • Up to ₹2.5 Lakh: Nil
- • ₹2.5L - ₹5L: 5%
- • ₹5L - ₹10L: 20%
- • Above ₹10L: 30%
New Regime (No Deductions)
- • Up to ₹2.5L: Nil
- • ₹2.5L - ₹5L: 5%
- • ₹5L - ₹7.5L: 10%
- • ₹7.5L - ₹10L: 15%
- • ₹10L - ₹12.5L: 20%
- • ₹12.5L - ₹15L: 25%
- • Above ₹15L: 30%
Allowances & Deductions (Old Regime)
Standard Deduction: Flat ₹50,000 deduction for salaried employees.
Section 80C: Up to ₹1.5 Lakh for investments in PF, PPF, ELSS, LIC, Tuition Fees, etc.
Section 80D: Deduction for Health Insurance premiums (₹25k for self/family, extra for parents).
Section 24(b): Deduction up to ₹2 Lakh on Home Loan Interest for self-occupied property.
Note: Most of these deductions (except 80CCD(2)) are NOT allowed under the New Tax Regime.
Calculation Examples
Example 1: Old Regime (Income ₹6L)
Gross Income: ₹6,00,000
Std Deduction: -₹50,000
80C Invest: -₹1,00,000
Taxable Income: ₹4,50,000
Tax Calculation:
• Tax on ₹4.5L: ₹10,000 (5% of 2L)
• Rebate u/s 87A: -₹10,000 (Available since Income ≤ 5L)
Net Tax: ₹0
Example 2: New Regime (Income ₹10L)
Gross Income: ₹10,00,000
Target: New Regime
Deductions: Not applicable
Tax Calculation:
• 0-2.5L: ₹0
• 2.5-5L (5%): ₹12,500
• 5-7.5L (10%): ₹25,000
• 7.5-10L (15%): ₹37,500
• Total Tax: ₹75,000 + 4% Cess
Total Payable: ₹78,000
Frequently Asked Questions
Q: Which regime is better, Old or New?
A: It depends on your total deductions. If you have significant investments in 80C, 80D, and HRA/Home Loan, Old Regime often saves more tax. If you have few deductions, New Regime might be better due to lower rates.
Q: Is Sec 87A rebate available in New Regime?
A: Yes, for FY 2020-21, the rebate of up to ₹12,500 is available under both regimes if taxable income is up to ₹5 Lakh.
Q: Is Cess mandatory?
A: Yes, Health & Education Cess at 4% is levied on the income tax payable + surcharge (if any) for all taxpayers.
Q: Can I switch between regimes?
A: Salaried individuals can switch regimes every year when filing ITR. Those with business income have limited options to switch.
Disclaimer: This India Income Tax Calculator 2021 is for educational and informational purposes only. It calculates tax based on the provisions for Financial Year 2020-21 (Assessment Year 2021-22). Actual tax liability may vary due to specific rules, surcharge applicability, and individual circumstances. Please consult a qualified Chartered Accountant (CA) or tax professional before filing your taxes. Etaxing is not responsible for any financial loss arising from the use of this tool.