Income Tax Calculator
An Income Tax Calculator is a digital tool designed to help individuals compute their income tax liability based on their income, deductions, exemptions, and applicable tax laws. It simplifies the process of estimating how much tax you owe or how much refund you can expect for a particular financial year (FY).
Income Tax Calculator
Financial Year 2025-26 (Assessment Year 2026-27)
Calculate your tax liability under Old vs New Tax Regime with Budget 2025 updates
Basic Information
Income Details
Primary Income Sources
Additional Income Sources
House Property Details
Self-Occupied Property
Let-Out Property
Tax Deductions (Old Regime Only)
Section 80C Deductions
Other Deductions
Tax Regime Comparison
Old Tax Regime
New Tax Regime
Recommendation
Detailed Tax Breakdown
Income Summary
Tax Computation
Visual Analysis
Income Distribution
Tax Comparison
Why Use an Income Tax Calculator?
✔️ To estimate your tax liability quickly
✔️ To compare tax payable under the old regime vs. new regime
✔️ To help in tax-saving investments and planning
✔️ To file taxes accurately with less room for errors
✔️ To check for eligibility for deductions under various sections like 80C, 80D, etc.
✔️ To decide whether switching tax regimes makes sense in your case
How to Use Income Tax Calculator
1. Select Financial/Assessment Year
- Choose FY (e.g., 2024–25 or 2025–26), which maps to AY 2025–26 or 2026–27. Each year, specific slab rates and exemptions.
2. Enter Personal Info
- Fill in age bracket (below 60 / 60–80 / above 80) and residential status. The old regime considers age; the new regime doesn’t.
3. Input Income Details
- Salary (gross and exemption-adjusted)
- Other incomes: interest, rent, capital gains, etc.
- Digital assets (crypto/NFT gains) where applicable
All income heads are covered.
4. Claim Deductions
- Old Regime: wide allowances under 80C, 80D, HRA, LTA, etc.
- New Regime: standard deduction ₹75k, 80CCD(2), and ₹60k rebate under Section 87A (FY 25–26).
5. Calculate
- View slab-wise tax, cess (4%), surcharge, rebate, and total tax under both regimes.
Compare Results
- Compare total tax liability under each regime to decide which is more beneficial based on your financial profile.
Income Tax Slabs—AY 2025-26 (FY 2024-25)
1. Old Tax Regime:
| Income Range | Tax Rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
- Senior Citizens (60–79 yrs): Basic exemption = ₹3 lakh
- Super Senior Citizens (80+ yrs): Basic exemption = ₹5 lakh
- Rebate under Section 87A: If total income is ≤ ₹5 lakh, tax liability becomes zero.
2. New Tax Regime (default from FY 2023-24)
| Taxable Income (₹) | Tax Rate |
|---|---|
| Up to ₹ 4,00,000 | 0% |
| ₹ 4,00,001–₹ 8,00,000 | 5% |
| ₹ 8,00,001–₹ 12,00,000 | 10% |
| ₹ 12,00,001–₹ 16,00,000 | 15% |
| ₹ 16,00,001–₹ 20,00,000 | 20% |
| ₹ 20,00,001–₹ 24,00,000 | 25% |
| Above ₹ 24,00,000 | 30% |
Regime Comparison
| Feature | Old Regime | New Regime (FY 25–26) |
|---|---|---|
| Tax slabs | Age-based slabs with ₹2.5 L basic exemption | Common slabs up to ₹24 L |
| Deductions | HRA, 80C, 80D, LTA, etc. | ₹75k standard + 80CCD(2) |
| Rebate | ₹5 L (87A) | ₹12 L (87A) |
| Best for | High deductions | Simple structure, moderate/no deductions |
Key Features & Changes
1. Standard Deduction Increased: Salaried and pensioners now get a ₹ 75,000 deduction under the new regime.
2. Enhanced Tax Rebate: Under Section 87A, full rebate extended up to ₹ 60,000 for taxable incomes ≤₹ 12 lakh, effectively making income up to ₹ 12.75 lakh tax-free (₹ 12 lakh + ₹ 75,000 deduction).
3. New Default Regime: The New regime is now the default choice, though you can still opt for the Old regime annually.
4. Reduced Surcharge: Highest surcharge capped at 25% for incomes above ₹ 2 crore (was 37%) in the new regime.
Why These Changes?
1. Stimulate Middle-Class Spending: By increasing the tax-free threshold and enhancing take-home pay, the government aims to stimulate consumer demand.
2. Simplify Taxation: Lower rates and fewer deductions eliminate complexity for many taxpayers, especially salaried earners
Comparison: Old vs. New Regime (FY 2025-26)
- Basic Exemption Limit: ₹ 4 Lakh vs. ₹ 2.5 Lakh (old regime).
- Standard Deduction: ₹ 75,000 vs. ₹ 50,000.
- Rebate (87A): ₹ 60,000 (up to ₹ 12 L income) vs. ₹ 12,500 (up to ₹ 5 L in old regime).
- Surcharge: Max 25% (new) vs. 37% (old).
- Deductions: New regime restricts deductions like 80C, 80D, HRA, etc.
Who Benefits Most?
- Income up to ₹ 12 Lakh
Zero tax payable under new regime due to rebate + standard deduction. - Middle-Income Brackets (₹ 12–24 Lakh)
Lower marginal rates than the old regime, especially for those without large deductions. - High Income (>₹ 24 Lakh)
Still benefits from broader slabs before reaching the 30%
Should You Switch?
1. The new regime is advantageous if:
- Your gross income is ≤₹ 12 L (zero tax payable).
- You don’t claim substantial exemptions under the old regime.
2. The old regime may suit those with:
- Large investment-linked deductions (80C, HRA, home loan interest).
- Income >₹ 24 L and deductions > ~₹ 8 L annually.
FAQs on Income Tax
1. What are the new income tax slabs under the New Tax Regime?
- Up to ₹ 4 lakh — 0%
- ₹ 4 lakh–₹ 8 lakh — 5%
- ₹ 8 lakh–₹ 12 lakh — 10%
- ₹ 12 lakh–₹ 16 lakh — 15%
- ₹ 16 lakh–₹ 20 lakh — 20%
- ₹ 20 lakh–₹ 24 lakh — 25%
- Above ₹ 24 lakh — 30%
2. What is the basic exemption limit now?
It’s ₹ 4 lakh, raised from ₹ 3 lakh in the previous year.
3. Is there a standard deduction?
Yes — ₹ 75,000 for salaried individuals and pensioners.
4. What about the tax rebate under Section 87A?
Tax rebate is up to ₹ 60,000 for taxable income ≤ ₹ 12 lakh, making incomes up to ₹ 12.75 lakh (after standard deduction) effectively tax-free.
5. How does ₹ 12.75 lakh become tax-free?
With ₹ 75,000 standard deduction, a ₹ 12.75 lakh income reduces to ₹ 12 lakh taxable, fully offset by the ₹ 60,000 rebate—bringing net tax liability to zero.
6. How does the surcharge apply?
Maximum surcharge is 25%, reduced from 37% in the previous regime, applied on incomes above ₹ 2 crore.
7. Are deductions allowed under the New Regime?
Only standard deduction of ₹ 75,000 and employer’s NPS contribution (14%) are permitted. All other regular deductions like 80C, 80D, HRA, etc., are not allowed.
8. Can I still opt for the Old Regime?
Yes—taxpayers (without business income) can choose either regime each financial year. However, the New Regime is set as the default for FY 2025–26.
9. Who benefits the most from this new regime?
- Middle-income earners (up to ₹ 12–13 lakh): zero tax
- Those with modest incomes and few deductions
- People seeking a simpler tax process.
10. How do I decide between Old vs New Regime?
- Choose New: if your income ≤ ₹ 12.75 lakh or if your deductions are limited
- Stick with Old: if you have significant investments/deductions (e.g., 80C, HRA, home loan interest) that reduce taxable income enough to outweigh the New Regime benefits.
11. Can you show a tax computation example?
Consider ₹ 12 lakh income:
- After ₹ 75k standard deduction → ₹ 11.25 lakh taxable
- Tax: ₹ 20,000 (5% on ₹ 4L) + ₹ 40,000 (10% on next ₹ 4L) + ₹ 18,750 (15% on ₹ 1.25L) = ₹ 78,750
- Section 87A rebate (₹ 60,000) → Net tax = ₹ 18,750 + cess
- But since income ≤ ₹ 12.75 lakh, the rebate fully cancels it → zero tax.
12. When did these changes come into force?
Effective April 1, 2025, for Financial Year 2025–26 (Assessment Year 2026–27) as per the Budget 2025.