Indian Income Tax Calculator: In-Hand Salary 2025 (New Regime FY 2024-25)

New Regime versus Old Regime

From FY 2023-24 the New Regime is the default for individual taxpayers. Most salaried employees benefit from the New Regime because they do not have large HRA, LTA, or section 80C exemptions; the New Regime has lower headline rates and the INR 75,000 standard deduction without requiring receipt-based proof. The Old Regime remains available and is sometimes better for taxpayers with large HRA (rent in expensive metros), home loan interest, employer LTA, and full section 80C utilisation (PF contributions, ELSS, NSC, etc.).

The rough breakeven for a typical Bangalore or Mumbai salaried worker with INR 4 lakh of rent (HRA exemption), INR 1.5 lakh of section 80C, and INR 2 lakh of home loan interest is at about INR 12 lakh of gross. Below that the New Regime wins; above, the Old Regime can be better. The calculator uses the New Regime; an Old Regime toggle is on the roadmap.

The six income tax slabs

New Regime slabs for FY 2024-25 are: 0 percent up to INR 3 lakh, 5 percent up to INR 7 lakh, 10 percent up to INR 10 lakh, 15 percent up to INR 12 lakh, 20 percent up to INR 15 lakh, and 30 percent above INR 15 lakh. The 4 percent health and education cess applies to the income tax computed, raising the effective rates to 0/5.2/10.4/15.6/20.8/31.2 percent. The calculator bakes the cess into the displayed slab rates for simplicity. Section 87A rebate of up to INR 25,000 applies for income up to INR 7 lakh in the New Regime, effectively making income tax zero at that threshold; the calculator's rebate handling is approximate.

Standard deduction

The standard deduction of INR 75,000 for salaried employees (raised from INR 50,000 in Budget 2024) is available in both regimes for the FY 2024-25 onwards. It is applied as a deduction from gross salary before the slabs. Pensioners get the same standard deduction. This is one of the simpler features of the system because no receipts or claims are required.

EPF and the basic-salary cap

EPF employee contribution is 12 percent of basic salary, matched by the employer at 12 percent (of which 8.33 percent goes to the EPS pension scheme and 3.67 percent to EPF proper). The contribution is mandatory for employees earning a basic salary of INR 15,000 per month or less; above that threshold an employer can cap the contribution base at INR 15,000 per month (INR 1.8 lakh per year), although most employers in the IT and corporate sectors contribute on the full basic salary to retain employees.

The calculator applies a simplified annual cap of INR 1.8 lakh on the contribution base, which corresponds to the 'cap at INR 15,000 basic' option. For employees whose employer contributes EPF on the full basic salary (which is more common in larger firms), real EPF deduction is higher than the calculator shows; this is one of the larger known accuracy gaps.

Section 87A rebate

The section 87A rebate provides up to INR 25,000 of tax relief for individuals with total income up to INR 7 lakh in the New Regime (or up to INR 12,500 with income up to INR 5 lakh in the Old Regime). The calculator currently does not apply 87A; for income up to INR 7 lakh in the New Regime, real income tax including cess is effectively zero. Below the rebate ceiling, treat the figures shown as an upper bound.

What this calculator does not include

Professional tax (varies by state, typically INR 2,400 per year for Karnataka and INR 2,500 for West Bengal). Section 87A rebate for income up to INR 7 lakh. HRA, LTA, and standard exemptions (Old Regime only). Section 80C (PF, ELSS, life insurance, etc.) up to INR 1.5 lakh deduction (Old Regime only). Section 80D health insurance premiums (Old Regime only). Section 80CCD(1B) voluntary NPS contribution up to INR 50,000 (Old Regime only). Section 80TTA savings account interest. Income from house property and home loan interest. Capital gains. Income from other sources. For salaried employees opting for the New Regime, the calculator covers the main income-side computation; full filing requires additional schedules for other heads of income.