1. What is Income Tax?

Income tax is a direct tax levied by the Government of India on the income of individuals, HUFs, companies, and other entities. The tax rates vary based on income levels and are structured in slabs.

2. How Does the Calculator Work?

The calculator uses the official tax slabs for Assessment Year 2024-25:

Explanation: The calculator considers your income, age group, and chosen tax regime to compute the tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter your total annual income, select your age group, and choose between the new or old tax regime. The calculator will estimate your tax liability.

5. Frequently Asked Questions (FAQ)

Q1: Which regime should I choose?
A: The new regime has lower rates but fewer deductions. The old regime may be better if you have significant deductions.

Q2: What's the difference in age groups?
A: Senior citizens (60-80) and super seniors (80+) get higher basic exemptions under the old regime.

Q3: Are cess and surcharge included?
A: This calculator shows basic tax. Health and education cess (4%) would be additional.

Q4: What about deductions?
A: Under old regime, deductions like 80C, 80D, HRA are available. New regime has limited deductions.

Q5: Is this calculator accurate for all cases?
A: This provides an estimate. For complex cases (capital gains, business income, etc.), consult a tax professional.