Income Tax Calculator (FY 2025-26)
Advanced computation engine with HRA, strict deduction caps, and Budget 2025 rules.
💰 Income Sources
Do not subtract standard deduction, we do it automatically.
Max capped at ₹2,00,000.
🏠 HRA Exemption Engine
Required only if you receive HRA as part of your salary.
🛡️ Deductions (Chapter VI-A)
EPF, PPF, ELSS, LIC. Max ₹1.5L cap.
Max ₹50,000 cap.
Crucial: Allowed in BOTH regimes.
Cap auto-applies based on age.
Enter actual PT deducted from your salary slip (Max ₹2,500). Note: Not applicable in all states (e.g., Delhi, UP, Haryana).
*Disclaimer: This calculator assumes eligible donations under Section 80G. Actual deduction may vary based on the type of charity and applicable 100%/50% adjusted limits.
Tax Summary
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Online Income Tax Calculator (FY 2025-26 / AY 2026-27)
Calculating your income tax liability manually across different regimes can be highly complex. Our Income Tax Calculator is an advanced online utility designed to estimate your exact tax obligations based on your salary, investments, and the latest Union Budget 2025 announcements.
By inputting your financials, this tool instantly compares your tax liability under both the Old Tax Regime and the New Tax Regime, allowing you to make an informed, data-driven decision on which structure saves you more money.
Key Income Tax Updates (Budget 2025)
The Union Budget 2025 introduced several major overhauls to the New Tax Regime to provide significant relief to taxpayers:
- Enhanced Section 87A Rebate: The tax rebate limit has been increased to ₹60,000. This effectively means that resident individuals with a taxable income of up to ₹12 Lakhs will have zero tax liability under the New Regime.
- Higher Standard Deduction: Salaried employees are now eligible for a standard deduction of ₹75,000 under the New Regime (up from ₹50,000). For salaried individuals, this pushes the tax-free threshold to ₹12.75 Lakhs.
- Senior Citizen Relief: The limit on tax deduction for interest income for senior citizens has been increased from ₹50,000 to ₹1,00,000.
Revised Slabs Under the New Tax Regime (FY 2025-26)
The default tax structure has been heavily revised. If you opt for the New Tax Regime, your income will be taxed according to the following slabs:
- Up to ₹4 Lakhs: Nil
- ₹4 Lakhs to ₹8 Lakhs: 5%
- ₹8 Lakhs to ₹12 Lakhs: 10%
- ₹12 Lakhs to ₹16 Lakhs: 15%
- ₹16 Lakhs to ₹20 Lakhs: 20%
- ₹20 Lakhs to ₹24 Lakhs: 25%
- Above ₹24 Lakhs: 30%
(Note: A 4% Health and Education Cess is added to the total calculated tax).
Old Tax Regime vs. New Tax Regime: Which is Better?
The right choice depends entirely on your investment habits.
The Old Regime is generally more beneficial if you claim heavy deductions, such as Section 80C (PPF, ELSS, Life Insurance up to ₹1.5 Lakhs), Section 80D (Health Insurance), House Rent Allowance (HRA), and Section 24(b) (Home Loan Interest).
The New Regime offers lower baseline tax rates and a massive ₹12 Lakh tax-free threshold, but it forces you to forgo almost all major exemptions (except the Standard Deduction and Section 80CCD(1B) employer NPS contributions).
How to Use This Calculator
- Select Assessment Year: Ensure FY 2025-26 (AY 2026-27) is selected to apply the latest budget rules.
- Enter Income: Input your Gross Annual Salary and any income from other sources (like rental yield or savings interest).
- Declare Deductions: Input your planned tax-saving investments (80C, 80D, etc.) and HRA details.
- Compare: The calculator will process the math instantly and display your final tax liability under both regimes side-by-side.
Frequently Asked Questions (FAQs)
Do I still get the ₹1.5 Lakh 80C deduction in the New Regime?
No. The New Tax Regime removes the Section 80C deduction, HRA exemption, and LTA. It compensates for this by offering lower overall tax rates and a higher basic exemption limit.
Does this calculator compute TDS?
No, this tool calculates your total annual income tax liability. Tax Deducted at Source (TDS) is the mechanism by which your employer or bank deducts a portion of this liability throughout the year.
Who needs to file an ITR?
Filing an Income Tax Return (ITR) is mandatory if your gross total income exceeds the basic exemption limit (₹4 Lakhs under the new regime, or ₹2.5 Lakhs under the old regime for individuals below 60). You must also file an ITR to claim the Section 87A tax rebate or to receive a refund for excess TDS deducted.
Disclaimer: The calculations generated by this tool are estimates provided for educational and informational purposes only. They are based on the standard rules outlined in the Union Budget 2025 for FY 2025-26. This calculator does not account for complex surcharges, marginal relief, or special tax rates on capital gains. This tool does not constitute professional tax, legal, or financial advice. Please consult a certified Chartered Accountant (CA) or tax professional before finalizing your tax filings or investment strategies.