A simplified, illustrative estimate under India's new-regime style slabs. Not tax advice — verify current slabs with a professional.
This demo uses simplified slabs (0% up to 3,00,000; 5% up to 7,00,000; 10% up to 10,00,000; 15% up to 12,00,000; 20% up to 15,00,000; 30% above) applied progressively. Slab rates are revised in each year's Union Budget, so verify the current year's slabs against the Income Tax Department before relying on this for filing.
Income tax in India is progressive: your income is divided into slabs and each slab is taxed at its own rate, so a higher salary never means your whole income is taxed at the top rate. From your gross income you subtract the standard deduction and any eligible deductions, arriving at taxable income. The slab rates then apply in sequence, a rebate may wipe out the liability entirely at lower incomes, and finally health and education cess is added to the tax figure.
The two regimes differ mainly in what you may deduct. The new regime offers lower slab rates but removes most deductions and exemptions; the old regime keeps deductions such as 80C, 80D and HRA but taxes at higher rates. Which one wins depends entirely on how much you actually claim — there is no universally better answer, which is why comparing both on your own numbers matters more than any rule of thumb.
No, and this is the single most common misunderstanding. Slab rates apply progressively. If you move into a higher slab, only the portion of income above that threshold is taxed at the higher rate — the income below it continues to be taxed at the lower rates. A pay rise can never reduce your take-home pay.
Whichever produces the lower tax on your actual numbers. The new regime tends to suit people who claim few deductions; the old regime suits those with substantial 80C investments, HRA, a home loan or medical insurance premiums. Salaried taxpayers may switch each year, so this is not a permanent decision. Run both before deciding.
Treat it as a close estimate. It applies the slab structure to the figures you enter, but your actual liability also depends on capital gains, other income, relief under provisions such as section 89, foreign income, and any TDS already deducted. Cross-check against your Form 26AS and AIS before filing.
Health and education cess is charged on the tax amount, not on your income, which is why it is applied after the slab calculation and after any rebate. It funds health and education spending and applies to almost every taxpayer.