Home Loan Benefit on Income Tax Calculator (Old Regime)
Financial Year: 2024 - 2025
Total income tax benefit with a Home Loan Rs. 0.00
Income tax payable without a Home Loan
Income tax payable with a Home Loan
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Disclaimer: Calculation considering individuals under the age of 60 years.
What is an Income Tax Calculator?
Individuals and Hindu Undivided Families falling under certain income tax slabs are liable to pay income tax every financial year. For this, you should know how to calculate income tax. While you can do a manual assessment, this may lead to errors. Bajaj Housing Finance brings you a simple digital Income Tax Calculator that you can use with ease.
This online Income Tax Calculator is a simple and convenient tool designed to estimate the approximate tax benefits you can gain through a Home Loan. If you have a Home Loan and wish to calculate the income tax online for FY 2024-25 and AY 2025-26, you can do so by entering only a few details such as your gender, annual income, and the interest paid and principal repaid on the Home Loan.
Our Income Tax Calculator is an easy-to-use online financial tool, which can help you to calculate tax benefits on your income. It displays the tax payable before and after availing of a Home Loan, along with the total tax benefit amount.
How to Use the Bajaj Housing Finance Income Tax Calculator for FY 2024-25 (AY 2025-26)
Follow these steps to use our online Income Tax Calculator:
Step 1: In the calculator section, select your gender.
Step 2: Provide accurate income details. Enter your basic salary along with income from other sources such as rental income, savings interests, and interests on deposits. Note that the annual income should be above Rs.2,50,000 to calculate the tax benefit since the annual income below Rs.2,50,000 does not qualify for tax exemption.
Step 3: Enter the interest amount paid on the Home Loan.
Step 4: Enter the principal amount repaid on the Home Loan.
The Income Tax Calculator will instantly display the total income tax benefit, the tax payable before availing of a Home Loan, and the tax payable after availing of a Home Loan.
Income Tax Slab Rates Under New and Old Regime for FY 2024-25 (AY 2025-26)
Here is a breakdown of the two tax regimes and their income tax slab rates, as per the latest Union Budget FY 2024-25:
New Income Tax Slab Rates Announced in Budget 2024
| Net Annual Taxable Income | New Tax Regime (excluding the exemptions and deductions) | Old Tax Regime (including the exemptions and deductions) |
|---|---|---|
| Up to Rs.2.5 Lakh | Exempt | Exempt |
| Rs.2.5 Lakh to Rs.3 Lakh | Exempt | 5% |
| Rs.3 Lakh to Rs.5 Lakh | 5% | 5% |
| Rs.5 Lakh to Rs.6 Lakh | 5% | 20% |
| Rs.6 Lakh to Rs.9 Lakh | 10% | 20% |
| Rs.9 Lakh to Rs.10 Lakh | 15% | 20% |
| Rs.10 Lakh to Rs.12 Lakh | 15% | 30% |
| Rs.12 Lakh to Rs.15 Lakh | 20% | 30% |
| Above Rs.15 Lakh | 30% | 30% |
Income Tax Slab for Individuals between 60 and 80 Years of Age (FY 2024-25)
| Tax Slabs | Rates under Old Regime (60 Years) | Rates under Old Regime (80 Years) | Rates under New Regime |
|---|---|---|---|
| Up to Rs.3 Lakh | NIL | NIL | NIL |
| Rs.3 Lakh – Rs.5 Lakh | 5.00% | NIL | 5.00% |
| Rs.5 Lakh – Rs.6 Lakh | 20.00% | 20.00% | 5.00% |
| Rs.6 Lakh – Rs.9 Lakh | 20.00% | 20.00% | 10.00% |
| Rs.9 Lakh – Rs.10 Lakh | 20.00% | 20.00% | 15.00% |
| Rs.10 Lakh – Rs.12 Lakh | 30.00% | 30.00% | 15.00% |
| Rs.12 Lakh – Rs.15 Lakh | 30.00% | 30.00% | 20.00% |
| Above Rs.15 Lakh | 30.00% | 30.00% | 30.00% |
How to Calculate Total Income Tax Liability?
While determining the total income tax payable through an online income tax calculator, enter the accurate data about the following in the tax calculator:
- Your gross yearly income from profits/salary
- Income from investments, rent, and other sources
- Tax exemptions if they are applicable
- Transport allowance and house rent
Once you fill these, you will be able to see your total income tax liability. If TDS is automatically deducted from your salary, you can check Form 26AS, which functions as a TDS calculator.
Simply subtract the TDS from the total income tax liability to get the amount you need to submit online via Challan 280. If you pay more than the total tax liability, the government reimburses the difference within a month of filing your income tax.
In case you file the IT returns after the due date, you will have to pay a penalty under Section 234F and interest under Section 234A. The due dates can vary based on your source of income. If you are employed and are earning a salary, your due date for filing income tax returns is July 31 of the assessment year.
An easy way to save on taxes is to make investments. At Bajaj Housing Finance, we help you fulfil your financial and personal goals by offering a housing loan and Loan Against Property at competitive interest rates.
Deduction on Total Income under Different Sections Applicable in FY 2024-25
Check the exemptions on total income tax:
-
Section 87A
If a taxpayer’s income is below Rs.5 Lakh, the person will be eligible for a tax rebate of up to Rs.12,500 as per the old tax regime. Under the new tax regime, a rebate of up to Rs.25,000 is available for income of up to Rs.7 Lakh.
-
Section 80C
The taxpayer is eligible for a rebate of up to Rs.1.5 Lakh for investments made in a tax-saver fixed deposit scheme, National Savings Certificate, Public Provident Fund, Unit-Linked Insurance Plan (ULIP), and equity-linked savings scheme (ELSS).
-
Section 80CCD(1B)
Taxpayer can seek up to Rs.50,000 additional tax deduction totalling Rs.2 Lakh for their investment in the National Pension Scheme.
-
Section 80D
A taxpayer is eligible for a tax exemption of up to Rs.25,000 for medical insurance premium bills. For senior citizens, the maximum limit is Rs.50,000. The maximum deduction one can avail of under this section is Rs.1 Lakh.
-
Section 80G
Donations made to charities are entirely tax-exempt under this section.
-
Section 80E
A 100% tax rebate is applicable on the interest paid for education loans for up to 8 years.
-
Section 80TTA/80TTB
Interest income up to Rs.10,000 from savings accounts, will be eligible for tax deductions. Senior citizens are eligible to avail tax waivers of up to Rs.50,000 under Section 80TTB.
-
Section 80GG
Income spent for paying house rent is tax-exempt. This section is applicable if you have not received HRA benefits from your employer.
*Terms and conditions apply.
Disclaimer
This calculator is provided for general information purposes only and should not be considered as financial advice. The results obtained from the calculator are estimates based on your inputs and remain subject to change depending on the laws and government guidelines, applicable at the time being. However, Bajaj Housing Finance Limited (‘BHFL’) is under no obligation to update or keep the information current. Users are advised to seek independent legal and professional advice before acting on the basis of the information contained in the Website. Placing reliance on the aforementioned information shall always be sole responsibility and decision of the User and the User shall assume the entire risk of any use made of this information.
In no event shall BHFL or the Bajaj Group, its employees, directors or any of its agents or any other party involved in creating, producing, or delivering this Website shall be liable for any direct, indirect, punitive, incidental, special, consequential damages (including lost revenues or profits, loss of business or loss of data) or any damages whatsoever connected to the User’s reliance on the aforementioned information.
Income Tax Calculator - FAQs
Here is how income tax is calculated:
- Calculate or ascertain your gross income from your salary, house property, or capital gains.
- Calculate your net taxable income by subtracting exemptions and deductions, such as deductions on investments and insurance.
To compute the tax, calculate eligible gross exemptions and gross income tax for the financial year. Exclude any credits you may be eligible for. You should know about various components of income tax before you calculate your tax. Income tax is calculated on taxable income based on the applicable income tax slab. The easiest way to arrive at an accurate figure is to use the income tax calculator to calculate your income tax. You can use our Income Tax Calculator to calculate tax benefits gained after availing of a Home Loan.
Several types of income are exempt under the Income Tax Act, 1961. These are known as tax-free income sources. Here are a few of these that you should be aware of:
- Agricultural income
- Payment received on voluntary retirement or during separation
- Funds received from government-recognized provident fund
- Any amount of gratuity received by a government employee
- Any payment in commutation of pension
- Receipts from Hindu Undivided Family
- Share from a partnership firm or LLP
- Certain sources or receipts earned by NRIs
- Income and receipts earned by foreigners in India
If you are eligible for income tax, use the income tax calculator to determine the income you are liable to pay.
The maximum non-taxable income limit for individuals and Hindu undivided families is Rs.3 Lakh and the same for senior citizens. Additionally, a tax rebate is offered to people with income below Rs.7 Lakh from the FY 2023-24 onwards. Super senior citizens above 80 years of age do not have to pay any tax or file returns up to Rs.5 Lakh of annual total income
You need the following details and documents for e-Filing your income tax returns:
- Details of your Aadhaar Card, PAN Card number, and proof of your current address
- Details of all the bank accounts under your name for the particular financial year
- Proof of income such as salary slips and details of income from investments such as interest on the savings bank account, and FDs.
- All the deductions claimed under Section 80 or Chapter VI-A of the Income Tax Act
- Details of tax payments like advance tax payments and TDS
For your convenience, keep all the necessary documents ready. Calculate advance tax and use the TDS calculator for income tax calculation.
There are several benefits of filing income tax online. Some of these benefits are listed below:
- It facilitates electronic tax refunds.
- It minimises errors.
- It acts as proof of income and address.
- It assists you in carrying forward losses.
- It is easier to avoid the late penalty by filing online.
- Filing income tax online is much safer and is confidential.
- You may get insurance and benefit with VISA processing.
- Filing income tax online is much quicker.
- You get a swift confirmation receipt and it provides real-time updates.
- Use the TDS calculator for tax computation as it helps you save the amount which you would have otherwise spent on professionals to file income tax for your assistance.
The Income Tax Calculator by Bajaj Housing Finance can be used to calculate the amount of funds saved by availing of a Home Loan. You simply need to enter your annual income, the interest amount paid, and the principal amount repaid on the Home Loan to calculate your income tax benefits.
Advance tax is payable if you have income sources other than salary. This includes rent, capital gains, lottery winning, and more. To calculate advance tax, apply the income tax slab rate applicable in the financial year. Follow the steps below:
- Estimate the income from capital gains, professional income, rent, and other income.
- Add income from salary to the above total to arrive at gross taxable income.
- Apply the income tax slab applicable to you.
- Deduct the TDS as per the TDS slab.
If your income is between Rs.5 Lakh to Rs.10 Lakh, you will need to pay 20% of your taxable income to the government.
If your income is between up to Rs.10 Lakh, you will need to pay 20% of your taxable income to the government.
| Tax Slab | Rates |
|---|---|
| Up to Rs.3,00,000 | NIL |
| Rs.3,00,000 to Rs.6,00,000 | 5% on income which exceeds Rs.3,00,000 |
| Rs.6,00,000 to Rs.9,00,000 | Rs.15,000 + 10% on income more than Rs.6,00,000 |
| Rs.9,00,000 to Rs.12,00,000 | Rs.45,000 + 15% on income more than Rs.9,00,000 |
| Rs. 2,00,000 to Rs.15,00,000 | Rs.90,000 + 20% on income more than Rs.12,00,000 |
| Above Rs.15,00,000 | Rs.1,50,000 + 30% on income more than Rs.15,00,000 |
Income Tax Slab for Individuals between 60 and 80 Years of Age
| Tax Slabs | Rates |
|---|---|
| Rs.3 Lakh | NIL |
| Rs.3 Lakh – Rs.5 Lakh | 5.00% |
| Rs.5 Lakh - Rs.10 Lakh | 20.00% |
| Rs.10 Lakh and more | 30.00% |
Income Tax Slab for People More than 80 Years
| Tax Slabs | Rates |
|---|---|
| Rs. 0 - Rs.5 Lakh | NIL |
| Rs.5 Lakh - Rs.10 Lakh | 20.00% |
| Above Rs.10 Lakh | 30.00% |
