Step 1: Select Tax Regime

• Field Name: "Tax Regime"
• Two Options:
  • ✅ New Tax Regime (Default) - Lower tax, fewer deductions, simpler
  • ✅ Old Tax Regime - Higher tax, more deductions, complex
• Which to Choose:
  • New Regime: If no specific deductions
  • Old Regime: If you have many deductions (insurance, investments)
• Important: Government changed to New Regime as default

Step 2: Enter Annual Income

• Field Name: "Annual Income (₹)"
• What to Include:
  • Gross salary
  • Freelance income
  • Business profit
  • Rental income
  • Interest/dividend income
  • Any other income source
• Example: Salary ₹5,00,000, enter 500000
• Note: Gross income, not net

Step 3: Enter Section 80C Deductions (Old Regime Only)

• Field Name: "Investment Under Section 80C (₹)"
• What It Is: Tax-saving investments (only for Old Regime)
• Maximum: ₹1.5 Lakh per year
• Includes:
  • Life Insurance Premium (LIC)
  • Employee Provident Fund (EPF)
  • Public Provident Fund (PPF)
  • National Savings Certificate (NSC)
  • ELSS Mutual Funds
  • Fixed Deposits
• Example: Invested ₹1.5 lakh, enter 150000
• Note: New Regime doesn't allow this deduction

Step 4: Enter Health Insurance Premium (Old Regime Only)

• Field Name: "Health Insurance Premium (₹)"
• What It Is: Health/medical insurance under Section 80D
• Maximum: ₹25,000 (self/family)
• Example: Paid ₹15,000 insurance, enter 15000
• Includes:
  • Health insurance premium
  • Medical insurance for parents
• Note: New Regime doesn't allow this deduction

Step 5: Click "Calculate" Button

• Get complete tax breakdown

RESULTS:

Result 1: Gross Annual Income

• What It Shows: Total income before tax
• Example: ₹5,00,000
• Used For: Reference

Result 2: Taxable Income

• What It Shows: Income on which tax is calculated
• Difference:
  • New Regime: Same as Gross Income
  • Old Regime: Gross - Deductions
• Example:
  • Gross: ₹5,00,000
  • Less Deductions: ₹1.5 Lakh
  • Taxable: ₹3.5 Lakh

Result 3: Income Tax Liability

• What It Shows: Tax amount you owe
• Applied On: Taxable Income
• Example: ₹55,000 tax on ₹5 lakh income

Result 4: Health & Education Cess (4%)

• What It Shows: Additional 4% charge on tax
• Calculation: Tax Liability × 4%
• Example: ₹55,000 tax × 4% = ₹2,200 cess

Result 5: Total Tax Payable

• What It Shows: Total amount to government
• Formula: Tax + Cess
• Example: ₹55,000 + ₹2,200 = ₹57,200 total tax

Result 6: Net Take-Home (Approx)

• What It Shows: Money left after tax
• Formula: Gross Income - Total Tax
• Example: ₹5,00,000 - ₹57,200 = ₹4,42,800 take-home
• Note: Approximate (may vary with deductions, rebates)

Example:

High Income (New Regime)

• Annual Income: ₹20,00,000
• Tax Regime: New Regime
• Results:
  • Taxable Income: ₹20,00,000
  • Tax: ₹2,25,000 (calculated in slabs)
  • Cess: ₹9,000
  • Total Tax: ₹2,34,000
  • Take-Home: ₹17,66,000

Comparison Both Regimes

• Annual Income: ₹8,00,000
• New Regime:
  • Tax: ₹40,000
  • Take-Home: ₹7,60,000
• Old Regime (with ₹1.5L deductions):
  • Tax: ₹28,000
  • Take-Home: ₹7,72,000
  • Saving: ₹12,000