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Income Tax Calculator

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  • Income
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  • Deductions
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See how the latest budget impacts your tax calculation. Updated as per latest budget on 23 July 2024

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Return to be filed for AY 2026-2027

FY 2025-2026
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Return to be filed for AY 2025-2026

FY 2024-2025

Age

< 60 years

61-80

> 80 years

Male

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Male
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Female
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Transgender
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It includes the amount received by an employee without any tax deductions.

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It includes income from other sources like freelancing, interest, gifts, etc.

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Profits from the sale of an asset such as shares of stock, business, land or artwork.

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It includes rental income from your let-out property.

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It includes income from cryptocurrency, NFTs, etc.

Basic Deduction - 80C

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It allows a maximum deduction of Rs 1.5 lakh

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It includes Life Insurance Premium.

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Amount invested in tax saver FD, PF(EPF + PPF) & tax saving mutual funds/ELSS.

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It includes other investments under 80C like NSC, school fees, home loan repayment, Sukanya Samriddhi Yojana, ULIP, etc.

Total deduction

₹0

80D

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It allows a maximum deduction of up to 1 Lakh

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It includes Health Insurance Premium of You & Your Family. Upto ₹25000 (not Sr. Citizen)

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It includes Health Insurance Premium of Your Parents. Upto ₹25000 (not Sr. Citizen)

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It includes Health Check Up of You and Your Family Upto Rs 10000 within their existing limit of 80D.

Total deduction

₹0

Loan Interests

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It includes interest on higher education loan for self/ dependent relatives.

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It includes interest of EV car loan upto ₹150000.

Total deduction

₹0

80G

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Entire donation amount paid to NGO, Political Party or Scietific Research/Agriculture.

Total deduction

₹0

80DD

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It allows a maximum deduction of up to 2.25 Lakh

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Individuals can claim deduction upto ₹75000 for the expenses of a disabled dependent and upto ₹125000 if disability is more than 80%.

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Deduction allowed upto ₹40,000 and upto ₹1,00,000 for senior citizens.

Total deduction

₹0

80TTA

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It allows a maximum deduction of 10 Thousand

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Amount of interest gain on savings account by individuals, upto a maximum of ₹10000.

Total deduction

₹0

Section 24

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A 30% standard deduction on total rental income from own rental property.

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Deduction allowed upto ₹2 lakhs.

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No limit on deduction amount.

Total deduction

₹0

NPS

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It allows a maximum deduction of up to 50 Thousand

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Deduction of up to ₹50,000 on own contribution.

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Maximum contribution for both private and government sector employees is 14% of their salary (basic+DA)

Total deduction

₹0

HRA Exemption

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This is the amount paid to the employee without any additions or allowances

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Cost of living adjustment allowance paid to Government employees and pensioners. Please enter "0" if you do not receive dearness allowance.

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Component of the salary given by a company to its employee to meet house renting expenses

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Total rent paid by the employee in a year

Do you live in metros like Delhi, Mumbai, Kolkata or Chennai? *

Old Tax Regime

New Tax Regime

Total Income

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Total Investment

0

Standard Deduction

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HRA Exemption

0

Taxable Income

0

Total Deduction

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Income Tax

0

Health and Education Cess(4%)

0

Surcharge

0

Total Tax Payable

0

Total Income

0

Standard Deduction

0

Taxable Income

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Income Tax

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Health and Education Cess(4%)

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Surcharge

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Total Tax Payable

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Income Tax Calculator for FY 2025-26 (AY 2026-27): Calculate Tax as per New & Old Regime Online

What is an Income Tax Calculator?

income tax calculator

What is an Income Tax Calculator?

An income tax calculator is an online tool of precision that lets you calculate tax liability based on your data. It is free, easy to use, and provides an error-free result. However, any incorrect data can impact your calculation. Therefore, you should know the details discussed here before using them.

Income Tax Slabs Under Old Tax Regime

In order to understand the income tax calculation process, you first need to know the rates applicable for different income limits under the new and the old regime.

The Income Tax Slab Rates for Individuals and HUF below 60 years of age as per the existing (old) income tax regime are as follows:

Income tax slabs Rate of Taxation
Up to ₹2,50,000  Nil 
Between ₹2,50,001 and ₹5,00,000  5% of your total income that exceeds ₹2,50,000 
Between ₹5,00,001 and ₹10,00,000  ₹12,500 + 20% of your total income that exceeds ₹5,00,000 
Above ₹10,00,000  ₹1,12,500 + 30% of your total income that exceeds ₹10,00,000

Income Tax Slabs Under New Tax Regime

The Union Budget of February 2025 has proposed changes in the income tax slabs of the New Tax Regime, which will be applicable for computing tax from April 1, 2025, onwards. Here are the new tax slabs:

Income Tax Slabs Rate of Taxation
Up to ₹4,00,000  Nil 
Between ₹4,00,001 and ₹8,00,000  5% of your total income that exceeds ₹4,00,000 
Between ₹8,00,001 and ₹12,00,000  ₹20,000 + 10% of your total income that exceeds ₹8,00,000 
Between ₹12,00,001 and ₹16,00,000  ₹60,000 + 15% of your total income that exceeds ₹12,00,000 
Between ₹16,00,001 and ₹20,00,000  ₹1,20,000 + 20% of your total income that exceeds ₹16,00,000 
Between ₹20,00,001 and ₹24,00,000  ₹2,00,000 + 25% of your total income that exceeds ₹20,00,000 
Above ₹24,00,000  ₹3,00,000 + 30% of your total income that exceeds ₹24,00,000 

Under this revised tax structure for FY 2025-26, individuals with earnings up to ₹12,00,000 will not have to pay any tax thanks to an increased rebate of ₹60,000.

[Source]

Your income tax liability will be calculated depending on the regime you choose.

Now that you are aware of the applicable rates for respective income slabs under both regimes, let’s have a look at the calculation formula.

Income Tax Calculation Formula for New and Old Regimes

How to Calculate Total Income Tax Liability?

Using an income tax calculator, you can calculate the tax liability based on the following points:

  • The annual income comes from salary and other profits.
  • Earning from other sources like savings, investments, rent, etc.
  • Components of income eligible for exemptions.
  • Transport allowance and house rent.
  • Tax has already been paid through TDS.

Note that you need to pay tax on your gross taxable income, as is evident from the mentioned formula. This is your total income minus all applicable exemptions and already paid taxes.

Let's look at an illustration to understand this.

The following are your salary components, and the respective exemptions apply to them.

Salary Components and Amounts (in ₹) Exemption Under Old Regime (in ₹) Exemption Under New Regime (in ₹)
Basic Salary - 12,00,000 
HRA - 6,00,000  3,60,000 
Special Allowance - 2,52,000 
Leave Travelling Allowance – 20,000  12,000 (on submitting bills) 
Standard Deduction  50,000  75,000 
Gross Taxable Income  16,50,000  19,97,000 

Since the exemptions and applicable rates under the old and new regimes are different, here are 2 examples to illustrate the respective calculation processes.

Income Tax Liability Under Old Tax Regime

 

Calculation of income tax liability with an income tax calculator under the old regime is shown below:

Components Amount (₹) Total (₹)
Salary  16,50,000 
Earning from Different Sources  20000 
Total Income  16,70,000 
Leave Travelling Allowance - 20000  12,000 (on submitting bills) 
Deductions 
Under Section 80C  1,50,000 
Under Section 80D  12,000 
Under Section 80TTA  8,000  1,70,000 
Taxable Income  15,00,000 
Total Tax (including 4% cess)  2,73,000 

Calculation of income tax on the taxable income:

Slabs Under Old Tax Regime (in ₹) Tax rate Tax amount in ₹
₹0 to ₹2,50,000  0% 
₹2,50,000 to ₹5,00,000  5%  12,500 
₹5,00,000 to ₹10,00,000  20%  1,00,000 
More than ₹10,00,000  30%  1,50,000 
Total  2,62,500 
Add. Cess  4%  10,500 
Total Tax Payable  2,73,000

Income Tax Liability Under New Tax Regime

 

Calculation of tax liability using new tax regime calculator is shown here:

Components Amount (₹) Total (₹)
Salary  19,97,000 
Earning from Different Sources  20,000  -
Total Income  20,17,000 
Total Tax (including 4% cess)  3,00,664 

Calculate the tax amount under the new tax regime on the taxable income of ₹19,97,000.

Slab Range Rate Tax Amount (₹)
Up to ₹4,00,000  0% 
Between ₹4,00,001 and ₹8,00,000  5%  20,000 
Between ₹8,00,001 and ₹12,00,000  10%  40,000 
Between ₹12,00,001 and ₹16,00,000  15%  60,000 
Between ₹16,00,001 and ₹19,97,000 20%  79,400 
Total  1,99,400 
Add cess  4%  7,976 
Total Tax Payable  2,07,376 

How to Use Income Tax Calculator Online?

You can easily calculate salary and identify the amount you need to pay as income tax by using the old vs new tax regime calculator; just follow the simple steps given below:

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Step 1

Under the Basic Details section first select your gender from the given options: (Male/Female/Transgender) and also select your age group from the three given age range classifications.

Step 2

Now, insert your gross annual income and basic annual pay under the allotted section.

Step 3

Then select your city from the drop-down menu. If your city is not among the given options, then select the “other” option. Also enter the annual house rent allowance and click on the “Continue” button to proceed further.

Step 4

Now under the Investment Details section first enter your total invested amounts, professional tax amount and medical insurance premium amount, if any in the allotted tabs as per Income Tax Act 1961.

Step 5

Now, enter the interests paid towards home loan and education loan, if any. Also provide income from interests that are eligible for deduction under the Income Tax Act 1961.

Step 6

Finally under the investment details section you need to insert your employer’s contribution towards the National Pension Scheme (NPS) and your monthly home rent expense.

Step 7

Lastly, check all the details thoroughly and hit on calculate after entering your personal details. Also Check your income tax payable as per the old and new regimes.

Different Components Involved in Old & New Tax Regimes

Different components considered under the tax regime are necessary to know how to calculate income tax.

At first, you have to calculate income from all sources, including -

  1. Salary
  2. House property (rental income and interest paid for a home loan)
  3. Capital gains or income from the sale or purchase of the house or any share of it
  4. Business or any professional service
  5. Savings including fixed deposits, PPF, etc.

Next, you need to consider the following deductions according to your chosen regime-

Available Tax Exemptions/ Deductions Old Tax Regime New Tax Regime
Income tax rebate up to ₹5 lakhs  ₹12 lakhs 
Standard Deduction  ₹50,000 
  • ₹75,000 for salaried people
  • ₹25,000 for family pensioners 
Rebate u/s 87A  ₹12,500  ₹60,000 
HRA Exemption  Yes  No 
Leave Travel Allowance (LTA)  Yes  No 
Other allowances, including food allowance of Rs 50/meal, are subject to 2 meals a day Yes  No 
Entertainment Allowance and Professional Tax  Yes  No 
Perquisites for official purposes  Yes  Yes 
Interest on Home Loan u/s 24b for self-occupied or vacant property  Yes  No 
Interest on Home Loan u/s 24b for let-out property Yes Yes
Deductions u/s 80C Yes  No 
Employee's (own) contribution to NPS  Yes    
Employer's contribution to NPS Yes  Yes (14% for all sector employees) 
Medical insurance premium u/s 80D Yes  No 
Allowance for disabled individuals u/s 80U Yes  No 
Interest on education loan u/s 80E  Yes  No 
Interest on electric vehicle loan u/s 80EEB Yes  No 
Donation to political party/trust etc., u/s 80G Yes  No 
Savings bank interest u/s 80TTA and 80TTB Yes  No 
All contributions to Agniveer Corpus Fund - 80CCH  Yes  Yes 
Deduction to family pension income Yes  Yes 
Gifts up to ₹5,000 Yes  Yes 
Exemption on voluntary retirement 10(10C) Yes  Yes 
Exemption on gratuity u/s 10(10)  Yes  Yes 
Exemption on leave encashment u/s 10(10AA) Yes  Yes 
Daily allowance by employers Yes  Yes 
Conveyance allowance Yes  Yes 
Transport allowance for a specially-abled person Yes  Yes 
Other Chapter VI-A deductions Yes  No 

Benefits of Using an Income Tax Calculator Online

benefits of using income tax calculator

Benefits of Using an Income Tax Calculator Online

The benefits of an income tax calculator are as follows:

  • Planning your tax liability 
  • Precise, easy, and comprehensive
  • Saving time
  • Getting the right information
  • Free tool
  • No login or credentials are required
  • Shows details about the calculation
  • Can select any option between the new and old regimes

FAQs about Income Tax Calculator