Income Tax / TDS Estimator

Income Tax / TDS Estimator: Know Your Exact Tax Before Filing

Nobody enjoys guessing how much tax they'll owe at the end of the year. This income tax and TDS estimator takes your salary details and deductions — Section 80C, Section 80D, HRA, and a few others — and instantly shows you the tax you'll actually pay, month by month, under both the Old and New tax regimes.

Instead of digging through spreadsheets or waiting for your company's payroll team to run the numbers, you can plug in your figures here and see a clear side-by-side comparison in seconds, along with a recommendation on which regime saves you more money this year.

Old Regime vs New Regime — What's the Real Difference?

India currently gives salaried taxpayers a choice every year between two tax structures. The Old Regime has higher slab rates but lets you reduce your taxable income using a long list of deductions and exemptions — things like 80C investments, health insurance premiums, and HRA. The New Regime has lower slab rates but strips away almost all of those deductions, keeping only the standard deduction.

Which one is better depends entirely on how much you're able to claim under the Old Regime. If your 80C, 80D, and HRA claims add up to a large number, the Old Regime often wins. If you don't have many investments or don't pay rent, the New Regime's lower rates usually come out ahead. This calculator runs both scenarios for you automatically, so you don't have to calculate each one by hand.

How Section 80C Deductions Work

Section 80C is the most commonly used deduction under the Old Regime. It covers a wide range of investments and expenses, including your own Provident Fund contribution, ELSS mutual funds, PPF, life insurance premiums, children's tuition fees, and principal repayment on a home loan. The total deduction under 80C is capped at Rs 1,50,000 a year, no matter how many eligible items you combine to reach that figure. This calculator applies that cap automatically, so even if you enter a higher number, only Rs 1,50,000 gets used in the final tax calculation.

How Section 80D Deductions Work

Section 80D lets you deduct the premium you pay for health insurance, both for yourself and your family, and separately for your parents. The exact limit depends on the ages of the people covered — it's typically higher if you're insuring senior citizen parents. This calculator uses a simplified combined limit so you get a quick, realistic estimate; for an exact figure specific to your family's ages, it's worth double-checking the current limits with a tax advisor or the Income Tax Department's official guidance.

How HRA Exemption Is Calculated

If you live in rented accommodation and receive House Rent Allowance (HRA) as part of your salary, you may be able to claim an exemption on part of it — but only under the Old Regime. The exemption is the LEAST of three amounts:

• The actual HRA you receive from your employer
• Rent paid minus 10% of your Basic Salary + DA
• 50% of Basic Salary + DA if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai), or 40% if you live elsewhere

Worked Example: HRA Exemption Calculation

Say your annual Basic Salary + DA is Rs 4,80,000, your employer pays you Rs 1,92,000 in HRA, you pay Rs 1,80,000 in annual rent, and you live in a metro city.

• Actual HRA received = Rs 1,92,000
• Rent paid minus 10% of Basic = 1,80,000 - 48,000 = Rs 1,32,000
• 50% of Basic (metro city) = Rs 2,40,000
• The exemption is the smallest of these three, so HRA exemption = Rs 1,32,000

What About Standard Deduction?

Every salaried employee, regardless of which regime they pick, is entitled to a flat Standard Deduction against their salary income. It requires no bills, proofs, or investment — it's simply subtracted from your gross salary before tax is calculated. This calculator applies it under both regimes by default, matching how payroll systems typically handle it, though the exact amount can change from year to year, so keep it updated if the Finance Act revises it.

Understanding the Section 87A Rebate

Beyond the regular slab deductions, the tax rules also include a rebate under Section 87A for taxpayers with relatively lower taxable income. Under the Old Regime, if your taxable income is Rs 5,00,000 or below, you get a rebate that brings your tax liability down to zero. Under the New Regime, that threshold is higher, currently up to Rs 7,00,000 of taxable income. This calculator automatically applies the correct rebate for whichever regime you're comparing, so a middle-income salary can genuinely show zero tax payable if it qualifies.

Why the 4% Cess Matters

After your tax is worked out (and the 87A rebate applied, if eligible), a Health and Education Cess of 4% is added on top of the remaining tax amount. It's a small addition, but it does change your final number slightly, so this calculator includes it automatically in both regime calculations for an accurate final figure.

From Annual Tax to Monthly TDS

Your employer doesn't collect your entire year's tax in one shot — instead, they estimate your total annual liability at the start of the year and deduct it in roughly equal monthly instalments as TDS (Tax Deducted at Source) from your salary. This calculator divides your final annual tax figure by 12 to show you the approximate monthly TDS you should expect to see deducted from your payslip, for both regimes.

Does Age Affect Your Tax Liability?

Yes, but only under the Old Regime. Senior citizens (60 to 80 years) get a higher basic exemption limit of Rs 3,00,000 instead of Rs 2,50,000, and super senior citizens (above 80) get an even higher exemption of Rs 5,00,000. The New Regime slabs stay the same regardless of age. This calculator adjusts the Old Regime slabs automatically based on the age category you select, giving senior citizens a more accurate estimate.

Advanced Features Built Into This Estimator

This isn't a single-number tax calculator. You get independent input fields for Standard Deduction, Section 80C, Section 80D, and a combined "Other Deductions" field for things like NPS contributions under 80CCD(1B), home loan interest under Section 24(b), and savings account interest under 80TTA. A dedicated, collapsible HRA section calculates your exact HRA exemption using the official three-way formula, with a metro/non-metro toggle.

Every result is calculated for both the Old Regime and the New Regime simultaneously, side by side, so you can instantly see which one lowers your tax bill and by how much. An age category selector adjusts the Old Regime exemption limit for senior and super senior citizens. You get a full breakdown of taxable income, tax before rebate, the Section 87A rebate applied, cess, final tax payable, effective tax rate, and monthly TDS for each regime — plus a bar chart comparing both regimes at a glance, a one-click clipboard summary, and a full CSV export for your records or for sharing with your accountant.

How to Get the Most Accurate Estimate

Use your actual last drawn or projected annual gross salary, not just your monthly figure multiplied loosely. Fill in your real Basic + DA and HRA figures directly from your salary slip rather than estimating them. Only claim deductions you can genuinely back up with proof — over-claiming 80C, 80D, or HRA will make your estimate look better than your real tax situation, and could cause a mismatch when you file your actual return.

Who Should Use This Calculator?

Salaried employees deciding between the Old and New tax regime at the start of a financial year, anyone negotiating a new job offer who wants to know their real take-home tax impact, people planning fresh 80C or 80D investments who want to see the exact tax benefit before committing money, and finance students or payroll professionals who want a quick way to cross-check manual tax calculations will all find this tool useful.

A Quick Note on Accuracy

This estimator uses commonly referenced slab rates, exemption limits, and rebate thresholds for salaried individuals. Actual tax rules, limits, and slab structures are revised through the Finance Act nearly every year, and your personal situation may include other income sources, capital gains, or additional deductions not covered here. Treat this as a solid planning estimate, and always confirm your final figures with a qualified tax professional or the official Income Tax Department resources before filing your return.