Free Online Income Tax Calculator
Use this advanced income tax calculator to compare tax liability under both old and new tax regimes. Easily calculate and understand your total tax payable with accurate results using this online income tax calculator.
₹75k
New Std Deduction
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Tax Calculator
Tax Calculation
Your tax breakdown will appear here
Enter your income details to see the computation
* Calculations are based on Budget 2025 proposals for FY 2026-27. Standard deduction of ₹75k (New) / ₹50k (Old) is applied.
Understanding Income Tax in India
Income tax is a direct tax that the government levies on the income of individuals and entities. In India, the income tax system is progressive, meaning higher income earners pay a higher percentage of their income as tax.
New Tax Regime
Lower tax rates but fewer deductions. Default regime from FY 2023-24. Standard deduction increased to ₹75,000 in Budget 2025.
Old Tax Regime
Higher tax rates but allows various deductions like 80C, 80D, HRA, etc. Standard deduction is ₹50,000.
How is Income Tax Calculated?
Step-by-Step Calculation
- Calculate Gross Total Income from all sources (Salary, House Property, etc.)
- Subtract Standard Deduction (₹75,000 for New, ₹50,000 for Old)
- Subtract other applicable deductions (Only for Old Regime)
- Apply tax slab rates on the remaining Net Taxable Income
- Apply Rebate u/s 87A if applicable (Tax-free up to ₹12L in New Regime)
- Add Health & Education Cess (4% of tax amount)
New Tax Regime Slabs (FY 2025-26)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - ₹8,00,000 | 5% |
| ₹8,00,001 - ₹12,00,000 | 10% |
| ₹12,00,001 - ₹16,00,000 | 15% |
| ₹16,00,001 - ₹24,00,000 | 20% |
| Above ₹24,00,000 | 30% |
Up to ₹4,00,000
₹4,00,001 - ₹8,00,000
₹8,00,001 - ₹12,00,000
₹12,00,001 - ₹16,00,000
₹16,00,001 - ₹24,00,000
Above ₹24,00,000
* Note: Full tax rebate up to ₹12 Lakhs taxable income under Section 87A in New Regime.
Common Tax Deductions (Old Regime)
Section 80C
Deduction up to ₹1.5 Lakh for investments in PPF, ELSS, LIC, EPF, etc.
Section 80D
Deduction for health insurance premiums for self, family, and parents.
Section 24(b)
Interest paid on home loan for self-occupied property up to ₹2 Lakh.
HRA Exemption
Exemption for house rent paid by salaried individuals.
How to Save Income Tax
If you opt for the old regime, or if you are deciding between the two, here are the most effective tax-saving strategies available to salaried individuals and self-employed professionals.
Utilise Section 80C Deductions
PPF, ELSS mutual funds, tax-saving FDs, life insurance premiums, EPF, and children's tuition fees all count toward this deduction.
Claim Deductions under Section 80D
Premiums for health insurance for yourself, your family, and your parents qualify for deduction. Senior citizen parents get a higher limit.
Take Advantage of Section 24(b)
Interest paid on home loan is deductible for self-occupied property. The principal repayment also falls under 80C.
National Pension System (NPS)
Contributions to NPS give you an additional ₹50,000 deduction under Section 80CCD(1B), over and above the Section 80C limit.
House Rent Allowance (HRA)
If you live in a rented house, you can claim HRA exemption. This is calculated based on salary, rent paid, and city of residence.
Education Loan Interest (80E)
Interest paid on loans taken for higher education for self, spouse, or children is fully deductible for up to 8 years.
Donations to Charity (80G)
Donations made to specified charitable institutions and relief funds can be claimed as deductions (50% or 100%).
Savings Account Interest (80TTA)
Interest earned on savings accounts is deductible up to ₹10,000 for individuals below 60 years.
Standard Deduction
A flat deduction available to all salaried employees and pensioners, regardless of actual expenses or investments.
Advance Tax Deadlines
If your total tax liability for the year is ₹10,000 or more, you are required to pay tax in installments throughout the year.
Frequently Asked Questions
Which tax regime is better for me?
What is the standard deduction for FY 2025-26?
Is there any tax rebate under the New Regime?
Can I switch between regimes every year?
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