How to calculate Income Tax from Taxable Income

Step 1: Open the Income Tax Calculator

Step 2: Fill in basic details

Step 3: Key in your salary details

Step 4: Declare your investments

Step 5: Calculate Taxable Income

‘Compute income tax’ to calculate the Taxable Income

Step 6: Taxable Income

View Calculation Summary and find how Income Tax is calculated from the Taxable Income

As you see, in the old regime, the first 2.5 lakhs are not taxable, the next 2.5 lakhs are taxed at 5% the next 5 lakhs are taxed at 20% and the rest is taxed at 30%. The tax slab is different for Senior citizens aged between 60 to 80 years and also in case of Super Senior citizens aged above 80 years.

As you see, in the new regime, the first 2.5 lakhs are not taxable, the next 2.5 lakhs are taxed at 5%, the next 5 lakhs are taxed at 10% and so on.

If the taxable income is less than 5 lakhs, you are eligible for a rebate of up to INR 12500 in both regimes.