Overview

The ToolsForges Income Tax calculator computes total income tax liability under both the old and new Indian tax regimes, enabling taxpayers to compare their net liability under each system and identify the more favorable option. Input your gross annual income across salary, rental, capital gains, and other sources, then apply eligible deductions under Section 80C, 80D, HRA, and other provisions to receive an instantaneous tax breakdown. All computations execute client-side, ensuring that your income and financial details remain completely private.

Feature Specifications

• Old vs New Regime ComparisonCompute tax liability under both the old regime with deductions and the new regime with lower slab rates but no deductions, then compare side-by-side to identify the optimal choice.
• Section 80C and 80D DeductionsApply deductions for provident fund, life insurance, health insurance, and other eligible investments to reduce taxable income under the old regime accurately.
• HRA Exemption CalculatorCompute House Rent Allowance exemption based on actual rent paid, basic salary, and city classification, then incorporate the exempt amount into the overall tax computation.
• Surcharge and Cess CalculationAutomatically apply applicable surcharge rates based on total income thresholds and four percent health and education cess on the computed tax liability.

Architecture

The calculator uses React useState for income and deduction inputs and a multi-step computation function that applies slab rates, deductions, surcharge, and cess in sequence. The output renders a comparison table showing both regimes simultaneously.