Is income up to Rs 7 lakh tax-free in India?

Yes! Under the New Tax Regime, Indian taxpayers with taxable income up to Rs 7,00,000 receive a full rebate under Section 87A, making their effective income tax zero.

What is the standard deduction in New Tax Regime 2024-25?

Salaried individuals in India get a flat standard deduction of Rs 50,000 under the New Tax Regime for FY 2024-25, automatically applied before tax calculation.

Income tax slabs India new regime FY 2024-25 showing progressive rates from 0% to 30%

Income Tax Calculator India (New Regime 2024-25)

Q: What is the New Tax Regime for FY 2024-25 in India?

The New Tax Regime for FY 2024-25 is now the default regime for Indian taxpayers. It offers lower tax rates with a standard deduction of Rs 50,000 and a full rebate under Section 87A for taxable income up to Rs 7,00,000.

Q: How is income tax calculated in India under the New Regime?

Tax is calculated progressively: 0% up to Rs 3L, 5% from Rs 3L-6L, 10% from Rs 6L-9L, 15% from Rs 9L-12L, 20% from Rs 12L-15L, and 30% above Rs 15L. A 4% Health and Education Cess is added on the final tax.

Q: What is Health and Education Cess in India?

Health and Education Cess is an additional 4% charge on the calculated income tax for Indian taxpayers. It funds health and education programs and is applied after all deductions and rebates.

Q: New Tax Regime vs Old Tax Regime — which is better?

The New Tax Regime is generally better if you have fewer deductions. The Old Tax Regime benefits those with high HRA, 80C investments, and home loan interest. Compare both to decide what saves more tax for your situation.

Designed specifically for Indian taxpayers | FY 2024-25 | 100% Free

Annual Gross Salary / Income (₹)

₹

Other Deductions (e.g. 80CCD(2))

₹

Beyond the standard ₹50,000

Rebates / Credits (e.g. TDS paid)

₹

e.g. Tax Deducted at Source

Standard Deduction Included: ₹50,000 automatically deducted as per New Regime rules for Indian salaried taxpayers (FY 2024-25).

1. Taxable Income ₹0

2. Tax Liability (Before Cess) ₹0

3. Final Tax Owed (Incl. 4% Cess) ₹0

Annual Net Income (Take-Home Pay) ₹0

Gross Income Breakdown

New Tax Regime — Key Facts

This tool is designed for Indian taxpayers under the New Tax Regime (FY 2024-25) — now the default in India.

Progressive Slabs:

Tax rates rise from 5% to 30% across brackets.

Rebate 87A:

Zero tax for taxable income up to ₹7,00,000.

4% Cess:

Health and Education Cess on calculated tax.

Disclaimer: Simplified tool for Indian salaried employees. Does not cover surcharge, HRA, 80C, or capital gains. Consult a CA for official filing.

Income Tax Calculator India — New Tax Regime FY 2024-25

This Income Tax Calculator is designed specifically for Indian taxpayers — salaried employees, self-employed professionals, and individuals filing under the New Tax Regime for FY 2024-25. Enter your annual gross salary and instantly get your taxable income, tax liability, Health and Education Cess, and annual take-home pay.

The New Tax Regime became the default tax regime in India as per the Union Budget 2023. It features lower slab rates, a ₹50,000 standard deduction for salaried individuals, and a full rebate under Section 87A for incomes up to ₹7 lakh. Use our HRA Calculator alongside this tool if you receive house rent allowance, or check your monthly pay with our Salary Calculator.

New tax regime income tax slabs India FY 2024-25 showing rates from 0% to 30% progressively

New Tax Regime — Income Tax Slabs for India (FY 2024-25)

Annual Taxable Income (India)	Tax Rate	Tax on This Slab
Up to ₹3,00,000	0%	Nil
₹3,00,001 – ₹6,00,000	5%	Up to ₹15,000
₹6,00,001 – ₹9,00,000	10%	Up to ₹30,000
₹9,00,001 – ₹12,00,000	15%	Up to ₹45,000
₹12,00,001 – ₹15,00,000	20%	Up to ₹60,000
Above ₹15,00,000	30%	30% on amount above ₹15L

How to Use This India Tax Estimator — Step by Step

Step 1: Enter your Annual Gross Salary in Indian Rupees (₹). This is your total income before any deductions. If you receive variable pay or bonuses, include them. Not sure of your gross? Use our Salary Calculator to break down your CTC.

Step 2: Add any extra deductions allowed under the New Regime — such as your employer's NPS contribution under Section 80CCD(2). The flat ₹50,000 standard deduction is already applied automatically in this India tax estimator.

Step 3: If your employer has already deducted TDS (Tax Deducted at Source), enter it in the Rebates/Credits field to see your remaining tax dues. Use our TDS Calculator to verify your TDS amount.

Step 4: Your results update instantly — showing taxable income, tax before cess, final tax with 4% cess, and annual net take-home pay. Want to see monthly figures? Try our Take-Home Salary Calculator.

Section 87A Rebate — Zero Tax for Income Up to ₹7 Lakh in India

One of the biggest benefits for Indian taxpayers under the New Regime is the Section 87A rebate. If your taxable income is ₹7,00,000 or below, your entire income tax liability is waived. Since the standard deduction is ₹50,000, a salaried Indian earning up to approximately ₹7.5 lakh gross effectively pays zero income tax. This calculator automatically applies this rebate.

Standard Deduction of ₹50,000 for Salaried Indian Employees

From FY 2023-24, the standard deduction of ₹50,000 was extended to the New Tax Regime. This flat deduction is available to all salaried employees and pensioners in India without submitting any proof or investment declarations. It is automatically factored into this calculator. To understand your full salary structure, also check our Gratuity Calculator and HRA Calculator.

Health and Education Cess — 4% on Tax for All Indian Taxpayers

All Indian taxpayers must pay a 4% Health and Education Cess on their calculated income tax. Introduced to fund government health and education schemes across India, this cess is computed after all deductions and rebates and added to your final tax bill. This India tax calculator automatically includes it — no manual steps needed.

Frequently Asked Questions — Income Tax India

What is the New Tax Regime for FY 2024-25 in India? +

The New Tax Regime for FY 2024-25 is now the default tax regime for Indian taxpayers. It offers lower tax rates with a standard deduction of ₹50,000 and a full rebate under Section 87A for taxable income up to ₹7,00,000 — meaning zero tax for most middle-income salaried Indians.

How is income tax calculated in India under the New Regime? +

Under the New Regime, your gross income is reduced by the ₹50,000 standard deduction to arrive at taxable income. Tax is then calculated progressively: 0% up to ₹3L, 5% from ₹3L–6L, 10% from ₹6L–9L, 15% from ₹9L–12L, 20% from ₹12L–15L, and 30% above ₹15L. A 4% Health and Education Cess is added on top of the final tax.

Is income up to ₹7 lakh completely tax-free in India? +

Yes! Under the New Tax Regime, Indian taxpayers with taxable income up to ₹7,00,000 get a full rebate under Section 87A, making effective income tax zero. Since the standard deduction is ₹50,000, someone earning up to ₹7.5 lakh gross effectively pays no income tax.

What is the standard deduction in the New Tax Regime 2024-25? +

All salaried employees and pensioners in India get a flat standard deduction of ₹50,000 under the New Tax Regime for FY 2024-25. No investment proof is required — it is automatically applied when calculating your taxable income.

What is Health and Education Cess in India? +

Health and Education Cess is a 4% surcharge on the income tax calculated for Indian taxpayers. It is collected by the Government of India to fund public health and education schemes. It applies after all deductions and Section 87A rebate, and is automatically included in this calculator.

New Tax Regime vs Old Tax Regime — which is better for me? +

The New Tax Regime is generally better if you have fewer deductions and investments. The Old Tax Regime may save more tax for those with high HRA, 80C investments (PPF, ELSS, LIC), and home loan interest deductions. Calculate your tax under both regimes and compare to find what suits your income profile best.

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