Income Tax Calculator (illustrative)
Progressive slab model in the spirit of simplified new-regime math. Actual tax depends on exemptions, rebates, and notifications—verify with a CA.
Build intuition for progressive tax slabs, marginal vs average rates, and 4% health & education cess on an illustrative ladder—pair the chart with a chartered accountant before you rely on it for an actual ITR or new vs old regime comparison.
Income & deductions
Annual figures in INR.
Tax estimate
Includes 4% health & education cess on tax before cess.
- Approx. balance after modeled tax — 93.5%
- Total tax (incl. cess) — 6.5%
Simplified picture only—ignores TDS timing, payroll structure, and other heads of income.
How slab tax is computed
Taxable income is split across brackets. Each bracket applies its rate only to income inside that band. Cess is applied on the subtotal tax.
Progressive slabs + cess
Tax = Σ (income_in_bracket_i × rate_i) Taxable_income = Gross − standard_deduction − other_deductions (as you enter) Total_payable = Tax + 4% × Tax (illustrative cess)
- Gross
- Annual income before the deductions you model in the form.
- Bracket
- A slice of income taxed at one marginal rate.
Marginal rate is the rate on the next rupee earned. Average rate is total tax divided by taxable income—useful to see effective burden.
Visual: marginal vs effective (conceptual)
High earners often pay a lower average rate than their top marginal rate because lower slices are taxed lightly.
- Lower slabs — 35.0%
- Middle slabs — 40.0%
- Top marginal slice — 25.0%
Purely decorative split; your bar chart above uses real slab tax from your inputs.
Worked example: ₹15 LPA salary, FY 2024-25 new regime
A walk-through of the new (default) regime for a salaried employee with ₹15 lakh CTC. Numbers below use the FY 2024-25 / AY 2025-26 slabs.
- Gross salary
- ₹15,00,000
- Less: standard deduction
- ₹75,000
- Taxable income
- ₹14,25,000
- Tax (slab calculation)
- ₹1,30,000
- Health & education cess (4%)
- ₹5,200
- Total tax payable
- ₹1,35,200
- Effective tax rate
- ~9.5%
Slab breakdown (new regime): ₹0–3 lakh → nil, ₹3–7 lakh → 5% (₹20,000), ₹7–10 lakh → 10% (₹30,000), ₹10–12 lakh → 15% (₹30,000), ₹12–15 lakh → 20% (₹45,000 on the ₹2.25 lakh slice up to ₹14.25 lakh), totalling ₹1,30,000 before cess.
Under the old regime with ₹1.5 lakh 80C + ₹50,000 NPS + ₹25,000 health insurance + ₹2 lakh home-loan interest, the same ₹15 lakh would face roughly ₹1,12,000 + cess. For most salaried filers without a home loan, the new regime now wins; with a large home-loan interest claim, the old regime can still come out ahead.
Key terms
- Gross total income
- Heads of income before Chapter VI-A deductions—salary, house property, capital gains, etc., in a real return.
- Taxable income
- Income on which tax rates are applied after deductions you are entitled to under the regime you file.
- Standard deduction
- Flat deduction salaried taxpayers may claim under rules for a given year—here you type the amount you want to model.
- TDS
- Tax deducted at source by employer or payer—credits against final liability, not modeled in this tool.
- Advance tax
- Quarterly prepayment of tax if liability is high—planning topic beyond this calculator.
Benefits
- Build intuition for how extra income moves you through marginal slabs.
- See cess impact on final payable amount.
- Pair with professional advice—useful homework before CA meetings.
FAQ
Is this official Income Tax Department software?▼
No. This is an educational slab calculator with a simplified progressive model. Actual tax depends on regime choice, rebates under sections 87A, surcharges, special rates, and notifications for the assessment year.
What is a progressive tax slab?▼
Different portions of taxable income are taxed at different rates. Higher slices face higher marginal rates—so your “average” tax rate is usually below your top marginal rate.
Why add 4% cess?▼
Health and education cess is commonly applied on income tax in India for individuals. We follow that pattern on the tax-before-cess amount in this demo.
Old regime vs new regime?▼
India offers alternative tax regimes with different slabs and deduction eligibility. This tool implements one illustrative slab ladder; consult Form 16 and a CA for filing.