Income Tax Calculator India

It entirely depends on your eligible deductions. If you claim heavy deductions under Section 80C, 80D, HRA, and home loan interest, the Old Regime may still save you money. However, if your deductions are low, the New Regime’s wider slabs and massive ₹12 lakh rebate (for FY 2025-26) will usually result in lower tax. Use this calculator to compare both side-by-side.

For salaried individuals, a gross salary of approximately ₹12,75,000 results in zero tax under the New Regime for FY 2025-26, because after the ₹75,000 standard deduction, taxable income becomes ₹12,00,000, which qualifies for the full 87A rebate of ₹60,000.

The New Regime slabs were significantly widened. The nil bracket increased from ₹3 lakh to ₹4 lakh, and the 87A rebate was enhanced so that taxable income up to ₹12 lakh pays zero tax. A new 25% bracket was also added for income between ₹20-24 lakh.

Section 87A provides a tax rebate that can reduce your income tax liability to zero if your taxable income is within the specified limit.
For FY 2025–26:
• Old Tax Regime: Rebate available if taxable income is up to ₹5 lakh (maximum rebate ₹12,500).
• New Tax Regime: Rebate available if taxable income is up to ₹12 lakh (maximum rebate ₹60,000).
However, this benefit is available only to Resident Individuals. Non-Resident Indians (NRIs) and RNOR (Resident but Not Ordinarily Resident) individuals are not eligible for the Section 87A rebate and must pay tax according to the applicable slab rates, even if their income falls within these limits.

Age only affects your tax slabs if you opt for the Old Regime. Under the Old Regime, Senior citizens (60-79 years) get a higher basic exemption limit of ₹3,00,000, and Super Senior citizens (80+ years) get an exemption of ₹5,00,000. Under the New Regime, the tax slabs are identical for all age groups.

The Income Tax Act, 2025 is a completely new tax code that replaces the old Income Tax Act of 1961. It is designed to simplify tax language and compliance, and it comes into effect on 1st April 2026 (applicable for FY 2026-27). The tax slabs and rates remain practically the same as FY 2025-26, but the legal framework has been modernized.

Salaried individuals (having no business income) have the flexibility to choose between the Old and New regime every financial year when filing their returns. However, self-employed individuals and those with business income generally only get one chance in their lifetime to switch back to the Old Regime once they opt for the New Regime. Consult a Chartered Accountant for specific guidance.

Yes. This calculator applies the appropriate surcharge for high earners with taxable incomes above ₹50 lakhs. It also implements marginal relief on the Section 87A rebate (for incomes just above ₹5L, ₹7L, or ₹12L) and basic marginal relief on surcharges.

The tax on capital gains from equity is a separate calculation and generally applies regardless of whether you choose the Old or New Regime.
• Short-Term Capital Gains (STCG): If you sell stocks or equity mutual funds within one year of buying, the profit is taxed at a flat rate of 15%.
• Long-Term Capital Gains (LTCG): If you sell after one year, profits up to ₹1,00,000 are tax-free. Any profit above this limit is taxed at a flat rate of 10%.
This calculator focuses on salary and other income, but it’s important to be aware of these taxes when filing your final return.

This is the most critical trade-off. By opting for the New Regime, you get lower tax rates but must forgo most of the popular deductions available under the Old Regime. The most significant ones you’ll lose are:
• Section 80C: Investments in PPF, ELSS, Life Insurance Premiums, etc. (up to ₹1.5 lakh).
• Section 80D: Health insurance premiums.
• HRA Exemption: House Rent Allowance.
• Home Loan Interest: Deduction under Section 24(b).
• Section 80TTA/80TTB: Deduction on savings account interest.
• Leave Travel Allowance (LTA).

HRA exemption is a major benefit available only under the Old Tax Regime. The amount of exemption is the lowest of the following three:
1. The actual HRA received from your employer.
2. Actual rent paid minus 10% of your basic salary (+ Dearness Allowance, if any).
3. 50% of your basic salary if you live in a metro city (Delhi, Mumbai, Chennai, Kolkata) or 40% for any other city.
Any HRA amount received over and above this exemption is added to your taxable income.

TDS stands for Tax Deducted at Source. It’s an advance tax that your employer (on salary) or a bank (on FD interest) deducts and pays to the government on your behalf.
TDS is not your final tax. It’s simply a prepayment. You can check all the TDS deducted against your PAN in your Form 26AS or Annual Information Statement (AIS). When you use this calculator, it computes your total tax liability for the year. Your final tax payable (or refund) will be:
Final Tax Due = Total Tax Liability (from calculator) – Total TDS already paid.

Not necessarily, thanks to marginal relief. If your taxable income under the New Regime is slightly above ₹12 lakh, the rules ensure your extra tax burden isn’t more than your extra income.
For example, if your taxable income is ₹12,01,000, your tax would normally be ₹60,150. However, because you earned only ₹1,000 above the rebate limit, your extra tax is capped at ₹1,000. So, you would only pay a total tax of ₹61,000 (your tax on ₹12L, which is ₹60,000, plus the extra income of ₹1,000). Our calculator automatically applies this relief.

In this calculator, the rebate (as applicable for eligible residents) can reduce only the tax on normal slab-rate income. If you have special-rate income such as capital gains (STCG/LTCG), VDA (crypto/NFT), or winnings/online game net winnings, those taxes are calculated separately and added on top. So your normal tax can become ₹0, but you may still have tax payable due to special-rate components (plus 4% cess).