Tax Refund Estimator
Tax Refund Estimator
Our Tax Refund Estimator helps Indian taxpayers calculate potential refunds from excess tax deducted at source. Estimate your refund based on your income, deductions, and TDS deductions. Whether you’re a salaried individual, freelancer, or have multiple income sources, this tool helps you understand if you’re eligible for a refund and how much you can expect to claim. Plan your finances better today using our India-specific Tax Refund Estimator.
Income Details
Deductions
Tax Regime
Estimated Tax Refund
Taxable Income
₹0
Tax Liability
₹0
Effective Tax Rate
0%
Tax Calculation Formula
Gross Income = Total income from all sources before deductions
Total Deductions = Section 80C + Section 80D + Home Loan Interest + Other Deductions
TDS Deducted = Tax Deducted at Source by employer/payer
Tax Liability = Tax calculated based on applicable tax slabs
Tax Refund = Positive value indicates refund, negative value indicates additional tax payable
Smart Financial Tips for Indian Users
- Maximize your Section 80C deductions by investing in PPF, ELSS, NSC, or tax-saving FDs up to ₹1.5 lakh.
- Claim deduction for health insurance premiums under Section 80D – ₹25,000 for self and family, plus ₹50,000 for parents.
- Consider the new tax regime if your total deductions are less than ₹3.75 lakh or if you prefer lower tax rates with no deductions.
- Submit investment proofs to your employer early in the financial year to avoid excess TDS deduction.
- Claim HRA exemption if you live in a rented house by submitting rent receipts and landlord’s PAN.
- Utilize standard deduction of ₹50,000 available to all salaried individuals regardless of actual expenses.
- File your ITR before the due date to avoid penalties and interest on any remaining tax liability.
Real-World Examples
👨💼 Rohit, 32, IT Manager in Pune
Rohit earns ₹15 lakh annually with ₹1.8 lakh TDS deducted. With ₹1.5 lakh in 80C deductions and ₹25,000 in 80D, his estimated refund is ₹38,700. He plans to invest the refund in an ELSS fund for additional tax benefits next year.
👩🏫 Priya, 28, School Teacher in Chennai
Priya earns ₹6 lakh annually with ₹60,000 TDS deducted. With minimal deductions, she chooses the new tax regime and gets a refund of ₹12,000. She uses this amount to start an emergency fund for future needs.
Income Tax Slabs for FY 2022-23 (AY 2023-24)
| Tax Regime | Income Range (₹) | Tax Rate |
|---|---|---|
| Old Regime | 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% | |
| 5,00,001 – 10,00,000 | 20% | |
| Above 10,00,000 | 30% | |
| Surcharge (if applicable) | 10%, 15%, 25%, or 37% | |
| New Regime | 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% | |
| 5,00,001 – 7,50,000 | 10% | |
| 7,50,001 – 10,00,000 | 15% | |
| 10,00,001 – 12,50,000 | 20% | |
| 12,50,001 – 15,00,000 | 25% | |
| Above 15,00,000 | 30% |
The new tax regime offers lower tax rates but doesn’t allow most deductions except for employer’s contribution to NPS (up to 10% of salary). Choose the regime that results in lower tax based on your specific income and eligible deductions.
How to Use the Tax Refund Estimator
Step 1: Gather Your Financial Information
Collect details of your gross annual income from all sources and the total TDS deducted. Also gather information about all eligible deductions under various sections like 80C (PF, PPF, life insurance, etc.), 80D (health insurance), home loan interest, and other deductions.
Step 2: Enter Your Income Details
Input your gross annual income and the total TDS already deducted by your employer or other payers. Be accurate with these figures as they form the basis for calculating your potential refund or additional tax liability.
Step 3: Enter Your Deductions
Enter all eligible deductions under different sections. For Section 80C, remember the maximum limit is ₹1.5 lakh. For Section 80D, the deduction depends on the number of family members covered and their age. Include home loan interest and any other eligible deductions.
Step 4: Select Tax Regime and Calculate
Choose between the old tax regime (with deductions) and the new tax regime (with lower rates but no deductions). Click the Calculate button to compute your taxable income, tax liability, and estimated refund or additional tax payable.
Step 5: Review and Plan
Analyze your results to understand your tax position. If you’re eligible for a refund, ensure you file your ITR on time to claim it. If you have additional tax payable, make arrangements to pay it before the due date to avoid penalties and interest.
Use this calculator as often as needed to fine-tune your financial decisions and reach your goals faster.
Frequently Asked Questions
Our calculator provides accurate estimates based on current tax laws and the information you provide. However, it doesn’t account for all possible deductions, exemptions, or special cases. For complex tax situations, consult a chartered accountant for precise calculations.
The old tax regime allows various deductions and exemptions but has higher tax rates. The new tax regime offers lower tax rates but removes most deductions and exemptions. Taxpayers can choose the regime that results in lower tax based on their specific income and eligible deductions.
Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, EPF, NSC, ELSS, tax-saving FDs, life insurance premiums, home loan principal repayment, tuition fees for children, and specified infrastructure bonds.
Under Section 80D, you can claim ₹25,000 for health insurance premiums for self, spouse, and children. An additional ₹25,000 can be claimed for parents below 60 years, or ₹50,000 for parents above 60 years. For senior citizens (above 60 years), the limit is ₹50,000 with an additional ₹50,000 for parents above 60 years.
You can claim up to ₹2 lakh as deduction for home loan interest under Section 24. Additionally, you can claim up to ₹1.5 lakh for principal repayment under Section 80C within the overall limit. For self-occupied properties, the interest deduction is limited to ₹2 lakh, while for let-out properties, there’s no upper limit.
After filing your ITR and verification, the Income Tax Department processes returns and issues refunds. Typically, e-verified returns are processed faster, and refunds are credited directly to your bank account within 3-6 months. Processing time may vary based on the complexity of your return and department workload.
If you have additional tax payable, pay it before the due date (usually July 31st for individuals) to avoid penalties and interest under Sections 234A and 234B. You can pay through the Income Tax Department’s e-tax payment portal using net banking, debit cards, or UPI.
Yes, you can file a revised return under Section 139(5) within the time specified by the Income Tax Department, which is typically before the end of the assessment year or before the completion of assessment, whichever is earlier. The revised return can include any missed deductions or income.
Stay consistent, track your financial habits, and let data-driven tools like this guide your wealth journey in India.
Disclaimer
The results and data provided by this calculator are based on industry-standard formulas and assumptions. Actual financial outcomes may differ due to fluctuating market rates, financial institution policies, and personal decisions. Please consult a certified financial advisor before making any critical decisions. This tool is localized for Indian users only.