Income Tax Calculator (India)
Calculate income tax in India under old and new regimes (FY 2025-26). Features Section 87A rebate, standard deduction, surcharge, cess, and slab breakdown.
About This Calculator
Income Tax Calculator (India) helps you calculate your tax liability under both the old and new tax regimes for FY 2025-26 (AY 2026-27) as per the latest Union Budget. Choose the regime that suits your financial situation best.
Our calculator considers all major deductions, the enhanced Section 87A rebate (up to ₹60,000 making income up to ₹12L tax-free), surcharge, and health & education cess. Get a comprehensive breakdown of your tax liability with visual charts.
Tax Regimes Comparison:
Old Tax Regime:
- Higher tax rates but allows full deductions
- Section 80C deductions up to ₹1,50,000
- HRA, LTA, home loan interest, and other allowances
- Standard deduction of ₹50,000
- Rebate under Section 87A: Income up to ₹5L pays zero tax
New Tax Regime (Default):
- Lower tax rates with limited deductions
- Higher basic exemption limit of ₹4L
- Standard deduction of ₹75,000
- Employer NPS contribution (80CCD(2)) allowed
- Income up to ₹12L tax-free via Section 87A rebate
Tax Slabs (FY 2025-26):
Old Regime:
- Up to ₹2.5L: 0%
- ₹2.5L - ₹5L: 5%
- ₹5L - ₹10L: 20%
- Above ₹10L: 30%
New Regime:
- Up to ₹4L: 0%
- ₹4L - ₹8L: 5%
- ₹8L - ₹12L: 10%
- ₹12L - ₹16L: 15%
- ₹16L - ₹20L: 20%
- ₹20L - ₹24L: 25%
- Above ₹24L: 30%
Features:
- Both tax regime calculations with latest FY 2025-26 slabs
- Total deductions field supporting both regimes
- Section 87A rebate auto-calculation
- Surcharge and cess computation
- Visual tax breakdown with pie and bar charts
- Effective tax rate and net in-hand income
- Shareable calculation links
Frequently Asked Questions
How is income tax calculated in India for FY 2025-26?
Income tax in India is calculated based on your taxable income and the applicable tax slab rates. First, calculate your gross total income from all sources (salary, business, capital gains, house property, other sources). Then subtract eligible deductions under various sections (80C, 80D, etc.) to arrive at taxable income. Apply the tax rates based on your chosen regime (old or new). The FY 2025-26 budget introduced a new 25% slab for income between ₹20-24 lakh under the new regime.
What is the difference between old and new tax regime?
The old tax regime offers higher tax rates but allows various deductions (80C, 80D, HRA, LTA, etc.). The new tax regime has lower tax rates but most deductions are not allowed. The new regime is beneficial for those without significant investments/loans, while the old regime benefits those with substantial deductions. Compare both using our calculator.
How much income is tax free in India for FY 2025-26?
Under the new tax regime (default from FY 2025-26), taxable income up to ₹12 lakh is effectively tax-free due to the enhanced Section 87A rebate of ₹60,000. With the standard deduction of ₹75,000, salaried individuals can earn up to ₹12.75 lakh with zero tax liability. Under the old regime, income up to ₹5 lakh is tax-free via Section 87A rebate of ₹12,500, with a basic exemption of ₹2.5 lakh.
What deductions are allowed in the new tax regime?
The new tax regime allows limited deductions: standard deduction of ₹75,000 for salaried employees, employer's contribution to NPS under Section 80CCD(2), family pension deduction (lower of 1/3rd of pension or ₹25,000), interest on home loan for let-out property under Section 24, and Agniveer Corpus Fund contributions under Section 80CCH. Other deductions like 80C, 80D, HRA are not allowed.
What are the new tax regime slabs for FY 2025-26?
The new tax regime slabs for FY 2025-26 (Budget 2025) are: 0-₹4L (0%), ₹4L-₹8L (5%), ₹8L-₹12L (10%), ₹12L-₹16L (15%), ₹16L-₹20L (20%), ₹20L-₹24L (25%), and above ₹24L (30%). The basic exemption limit was increased from ₹3L to ₹4L, and a new 25% slab was introduced for ₹20-24L income range.
What deductions are available under Section 80C?
Section 80C allows deductions up to ₹1.5 lakh per year (old regime only) for investments in: EPF/PPF contributions, ELSS mutual funds, 5-year tax-saver FDs, NSC, Sukanya Samriddhi Yojana, Senior Citizen Savings Scheme, life insurance premiums, home loan principal repayment, children's tuition fees, and NPS contributions (up to ₹50,000 under 80CCD(1B)).
Is 12 lakh income tax free in new regime?
Yes, under the new tax regime for FY 2025-26, taxable income up to ₹12 lakh is completely tax-free due to the enhanced rebate under Section 87A. The maximum rebate amount is ₹60,000. If your taxable income is ₹12 lakh or less, you pay zero tax. This is a significant increase from the previous limit of ₹7 lakh. Marginal relief applies for income slightly above ₹12 lakh.
How can I save tax on salary in FY 2025-26?
Under the old regime, optimize by investing ₹1.5 lakh under Section 80C (PPF, ELSS, FD), get health insurance (₹25,000 under 80D, ₹50,000 for senior citizens), claim HRA exemption if living on rent, and claim home loan interest up to ₹2 lakh under Section 24. Under the new regime, tax rates are lower so you may not need deductions; the ₹75,000 standard deduction and employer NPS contribution are the key benefits.
What is surcharge on income tax?
Surcharge is an additional tax on the income tax amount, applicable when taxable income exceeds certain limits: 10% for income above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 25% (new regime) or 37% (old regime) above ₹5 crore. A 4% Health and Education Cess is applied on the total of income tax plus surcharge.
Can I switch between old and new tax regime?
The new tax regime is the default regime for FY 2025-26. Salaried individuals can switch between old and new tax regimes every financial year when filing ITR. However, if you have business income, you can switch only once in your lifetime, and can revert back only once. It's advisable to calculate tax liability under both regimes using our calculator and choose the one that results in lower tax.