Income Tax Calculator

Income Tax Calculator India – Complete Guide for FY 2025-26

Income Tax is a direct tax imposed by the Government of India on individuals, professionals, and businesses. Every salaried employee, freelancer, or self-employed professional earning above the basic exemption limit must pay income tax as per slab rates announced in the Union Budget.

Our advanced Income Tax Calculator helps you instantly compare the Old Tax Regime and the New Tax Regime. It automatically applies latest slab rates, Section 87A rebate, standard deduction, and 4% health & education cess.

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What is Income Tax?

Income tax is charged based on income slabs. The higher your taxable income, the higher the percentage of tax applied on incremental income.

India currently offers two tax regimes:

• Old Tax Regime – Higher tax rates but allows deductions.
• New Tax Regime – Lower tax rates but fewer deductions.

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Income Tax Slabs FY 2025-26 (New Regime)

Income Range	Tax Rate
₹0 – ₹3,00,000	0%
₹3,00,001 – ₹7,00,000	5%
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

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Income Tax Slabs – Old Regime

• Up to ₹2.5L – 0%
• ₹2.5L to ₹5L – 5%
• ₹5L to ₹10L – 20%
• Above ₹10L – 30%

Senior citizens and super senior citizens receive higher exemption limits.

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Section 87A Rebate Explained

Under the New Tax Regime, individuals with taxable income up to ₹7 lakh can claim full rebate under Section 87A, making their tax liability zero.

Under the Old Regime, rebate applies up to ₹5 lakh taxable income.

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Standard Deduction

• Old Regime: ₹50,000
• New Regime (FY 2024-25 onward): ₹75,000

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Major Deductions in Old Regime

• Section 80C – Up to ₹1.5 lakh (PPF, ELSS, LIC, EPF)
• Section 80D – Health Insurance Premium
• Section 24 – Home Loan Interest (₹2 lakh)
• HRA Exemption
• NPS (80CCD)

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How to Calculate Income Tax?

1. Enter your gross annual income.
2. Choose your age category.
3. Enter eligible deductions.
4. Select financial year.
5. Click Calculate.
6. Compare old vs new regime instantly.

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Which Tax Regime is Better?

If you invest heavily in tax-saving instruments, Old Regime may reduce your tax more.

If you prefer simplicity and fewer investments, New Regime usually offers lower tax.

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Benefits of Using This Calculator

• ✔ Updated with latest Budget
• ✔ Accurate slab computation
• ✔ Senior citizen support
• ✔ Rebate auto-applied
• ✔ Cess included
• ✔ Detailed slab breakdown table
• ✔ PDF & Excel download option
• ✔ 100% Free

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Frequently Asked Questions (FAQ)

1. Is income up to ₹7 lakh tax free?

Yes. Under the New Regime, Section 87A rebate makes tax zero for income up to ₹7 lakh.

2. Can I switch between tax regimes every year?

Salaried individuals can switch every financial year. Business owners have restrictions.

3. Is HRA allowed in New Regime?

No. HRA deduction is only available under Old Regime.

4. Does this calculator include cess?

Yes. 4% health & education cess is included.

5. What is standard deduction in FY 2025-26?

₹75,000 under New Regime and ₹50,000 under Old Regime.

6. Is this calculator accurate?

Yes. It uses official slab rates announced in Union Budget.

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Final Words

Choosing the correct tax regime can help you save thousands of rupees every year. Use this Income Tax Calculator to compare both regimes and make informed financial decisions.

Always consult a Chartered Accountant for final filing and compliance.