India Income Tax Calculator 2023
Financial Year 2022-23 | Assessment Year 2023-24
Introduction
🎯 What
India Income Tax Calculator 2023 helps calculate tax liability for salaried and self-employed individuals for FY 2022-23 (Assessment Year 2023-24) with both Old and New Tax Regime options.
👥 Who
Salaried employees, self-employed professionals, freelancers, business owners, employers calculating TDS, tax consultants & students.
💡 Why
Helps users understand tax liability, plan investments for deductions, optimize between Old/New regime, and comply with Income Tax rules.
💼 Basic Information
💰 Deductions & Exemptions (Old Regime Only)
▼Max: ₹1,50,000 (PPF, ELSS, LIC)
Health Insurance Premium
Max: ₹50,000 (NPS)
Education Loan Interest
Charitable Donations
House Rent Allowance / Leave Travel Allowance
💵 Tax Summary
Enter income details and calculate
Detailed Tax Breakdown
Tax Slabs (FY 2022-23 | AY 2023-24)
NEW TAX REGIME
OLD TAX REGIME
Rebate u/s 87A: ₹12,500 for income up to ₹5,00,000
Health & Education Cess: 4% on total income tax
Allowances & Deductions (Old Regime)
✔ Available Deductions
- Section 80C: Max ₹1,50,000 (PPF, LIC, ELSS, NSC, etc.)
- Section 80D: Health Insurance Premium
- Section 80CCD(1B): Max ₹50,000 (NPS)
- Section 80E: Education Loan Interest
- Section 80G: Charitable Donations
- HRA: House Rent Allowance exemption
- LTA: Leave Travel Allowance
- Standard Deduction: ₹50,000
✘ NOT Available in New Regime
- Section 80C deductions
- HRA exemption
- LTA exemption
- Most other deductions
- Standard Deduction
Note: New regime has lower tax rates but fewer deductions
Calculation Examples
Example 1: Old Regime (Salaried)
Gross Income: ₹8,00,000
Less: Section 80C (₹1,50,000)
Taxable Income: ₹6,50,000
Tax Calculation:
• Up to ₹2,50,000: ₹0
• ₹2,50,001 – ₹5,00,000: 5% of ₹2,50,000 = ₹12,500
• ₹5,00,001 – ₹6,50,000: 20% of ₹1,50,000 = ₹30,000
Total Tax: ₹42,500
Add 4% Cess: ₹1,700
Final Tax Payable: ₹44,200
Monthly Tax: ≈ ₹3,683
Example 2: New Regime (Self-Employed)
Gross Income: ₹12,00,000
No Deductions
Taxable Income: ₹12,00,000
Tax Calculation:
• Up to ₹2,50,000: ₹0
• ₹2,50,001 – ₹5,00,000: 5% of ₹2,50,000 = ₹12,500
• ₹5,00,001 – ₹7,50,000: 10% of ₹2,50,000 = ₹25,000
• ₹7,50,001 – ₹10,00,000: 15% of ₹2,50,000 = ₹37,500
• ₹10,00,001 – ₹12,00,000: 20% of ₹2,00,000 = ₹40,000
Total Tax: ₹1,15,000
Add 4% Cess: ₹4,600
Final Tax Payable: ₹1,19,600
Monthly Tax: ≈ ₹9,967
Frequently Asked Questions
Q: Can I use new tax regime and claim 80C deductions?
A: No, the new tax regime does not allow most deductions including Section 80C. You must choose the old regime to claim these deductions.
Q: Is professional tax included in IT calculation?
A: Yes, professional tax paid can be deducted from gross total income before calculating income tax.
Q: How to calculate HRA exemption?
A: HRA exemption is the minimum of: (i) Actual HRA received, (ii) 50% of salary for metro cities or 40% for non-metro, (iii) Rent paid minus 10% of salary.
Q: Is this calculator accurate for filing returns?
A: This calculator provides estimates for informational purposes. Always consult the official Income Tax website or a chartered accountant for filing returns.
Q: What is Section 87A rebate?
A: Section 87A provides a rebate of up to ₹12,500 for taxpayers with taxable income up to ₹5,00,000 in the old regime.
Disclaimer: This India Income Tax Calculator 2023 is for informational and educational purposes only. Actual tax liability may vary depending on exemptions, deductions, and state-specific rules. Tax laws are subject to change. Always consult official Income Tax Department sources or a qualified tax professional before filing returns or making financial decisions. This calculator does not constitute financial or legal advice.