Income Tax Calculator India — FY 2025-26
Calculate your income tax for FY 2025-26 (AY 2026-27) with 3 modes — New Regime (Budget 2025 slabs, ₹12 lakh tax-free), Old Regime (full 80C/80D/HRA/home loan deductions), and instant side-by-side Regime Comparison. Includes slab-by-slab breakdown, surcharge, 4% cess, Section 87A rebate, and monthly TDS.
What Is an Income Tax Calculator?
An income tax calculator is a tool that helps you estimate your total tax liability for a given financial year based on your income, deductions, and applicable tax slabs. In India, the Income Tax Act, 1961 governs direct taxation, administered by the Central Board of Direct Taxes (CBDT) under the Ministry of Finance.
For FY 2025-26 (Assessment Year 2026-27), Budget 2025 introduced significant changes to the new tax regime — making income up to ₹12 lakh tax-free (₹12.75 lakh for salaried individuals). Our calculator covers both regimes with slab-by-slab breakdowns, surcharge, cess, and Section 87A rebate.
Income Tax Slabs — New Regime FY 2025-26 (Budget 2025)
The new tax regime under Section 115BAC is the default regime for all taxpayers. It features lower rates but restricts most deductions:
| Annual Income | Tax Rate | Tax on Slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | Varies |
Income Tax Slabs — Old Regime FY 2025-26
The old regime offers higher tax rates but allows all deductions (80C, 80D, HRA, home loan, etc.). Slabs vary by age:
Individuals Below 60 Years
| Annual Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior Citizens (60–80 Years)
| Annual Income | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Super Senior Citizens (80+ Years)
| Annual Income | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
New Regime vs Old Regime — Which Should You Choose?
| Parameter | New Regime | Old Regime |
|---|---|---|
| Default? | ✅ Yes (opt-out required for old) | Must opt in |
| Basic Exemption | ₹4,00,000 | ₹2.5L / ₹3L / ₹5L (age-based) |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C (₹1.5L) | ❌ Not available | ✅ Available |
| Section 80D (Health) | ❌ Not available | ✅ Available |
| 80CCD(1B) — NPS ₹50K | ❌ Not available | ✅ Available |
| 80CCD(2) — Employer NPS | ✅ Available | ✅ Available |
| HRA Exemption | ❌ Not available | ✅ Available |
| Home Loan Interest (₹2L) | ❌ Not available | ✅ Available |
| LTA | ❌ Not available | ✅ Available |
| 87A Rebate | ₹60,000 (up to ₹12L income) | ₹12,500 (up to ₹5L income) |
| Tax-free Income | Up to ₹12.75L (salaried) | Up to ₹5L |
| Can Switch? | Every year (salaried) | Every year (salaried) |
All Tax Deductions & Exemptions — Complete Guide
| Section | Description | Limit | New Regime? |
|---|---|---|---|
| 80C | PPF, ELSS, EPF, LIC, NSC, SSY, FD, home loan principal | ₹1,50,000 | ❌ |
| 80CCC | Pension fund contributions | Within 80C limit | ❌ |
| 80CCD(1) | Employee NPS contribution | Within 80C limit | ❌ |
| 80CCD(1B) | Additional NPS (exclusive) | ₹50,000 | ❌ |
| 80CCD(2) | Employer NPS contribution | 10% of salary (14% for govt) | ✅ |
| 80D | Health insurance premium | ₹25K–₹1L (age-based) | ❌ |
| 80DD | Disabled dependent | ₹75K / ₹1.25L | ❌ |
| 80E | Education loan interest | No limit (interest only) | ❌ |
| 80G | Donations to charity | 50%–100% of donation | ❌ |
| 80GG | Rent paid (no HRA from employer) | ₹60,000/yr | ❌ |
| 80TTA | Savings account interest | ₹10,000 | ❌ |
| 80TTB | Interest income (seniors only) | ₹50,000 | ❌ |
| Section 24(b) | Home loan interest | ₹2,00,000 (self-occupied) | ❌ |
| HRA | House Rent Allowance | Formula-based | ❌ |
| LTA | Leave Travel Allowance | Actual travel cost | ❌ |
| Std. Deduction | Flat deduction for salaried | ₹50K (old) / ₹75K (new) | ✅ |
How to Calculate Income Tax — Worked Example
Example: ₹15 Lakh Salary (FY 2025-26)
| Step | New Regime | Old Regime (with deductions) |
|---|---|---|
| Gross Salary | ₹15,00,000 | ₹15,00,000 |
| Standard Deduction | −₹75,000 | −₹50,000 |
| 80C (EPF+PPF+ELSS) | — | −₹1,50,000 |
| 80D (Health Ins.) | — | −₹25,000 |
| 80CCD(1B) NPS | — | −₹50,000 |
| HRA Exemption | — | −₹1,80,000 |
| Taxable Income | ₹14,25,000 | ₹10,45,000 |
| Tax on slabs | ₹93,750 | ₹1,09,000 |
| 87A Rebate | ₹0 (income > ₹12L) | ₹0 (income > ₹5L) |
| Cess (4%) | ₹3,750 | ₹4,360 |
| Total Tax | ₹97,500 | ₹1,13,360 |
| Savings | New regime saves ₹15,860 | |
Surcharge Rates on Income Tax
| Total Income | New Regime Surcharge | Old Regime Surcharge |
|---|---|---|
| Up to ₹50 Lakh | Nil | Nil |
| ₹50L – ₹1 Crore | 10% | 10% |
| ₹1Cr – ₹2 Crore | 15% | 15% |
| ₹2Cr – ₹5 Crore | 25% (capped) | 25% |
| Above ₹5 Crore | 25% (capped) | 37% |
Marginal Relief: If your income slightly exceeds a surcharge threshold, the total tax+surcharge is limited so that it doesn’t exceed the tax you’d pay at the threshold plus the excess income. This prevents a ₹1 increase in income causing a disproportionate tax jump.
Advance Tax Due Dates — FY 2025-26
If your total tax liability (after TDS) exceeds ₹10,000, you must pay advance tax:
| Due Date | Cumulative % | Instalment |
|---|---|---|
| 15 June 2025 | 15% | First instalment |
| 15 September 2025 | 45% | Second instalment |
| 15 December 2025 | 75% | Third instalment |
| 15 March 2026 | 100% | Final instalment |
Penalty: Interest under Section 234B (1% per month for non-payment) and Section 234C (1% per month for deferment) applies on shortfall. Senior citizens (60+) without business income are exempt from advance tax.
ITR Forms Guide — Which Form to Use
| ITR Form | Who Should Use | Income Limit |
|---|---|---|
| ITR-1 (Sahaj) | Salaried, one house property, other sources, agriculture ≤ ₹5K | Up to ₹50 Lakh |
| ITR-2 | Individuals with capital gains, multiple properties, foreign income | No limit |
| ITR-3 | Individuals with business/profession income | No limit |
| ITR-4 (Sugam) | Presumptive income (44AD/44ADA/44AE) | Up to ₹50 Lakh |
Due Date: 31 July (non-audit), 31 October (audit cases). Belated return can be filed until 31 December with a penalty of ₹5,000 (₹1,000 if income ≤ ₹5L).
Tax on Special Incomes
| Income Type | Tax Rate | Section |
|---|---|---|
| STCG (Equity/MF) | 20% | Section 111A |
| LTCG (Equity/MF) | 12.5% (above ₹1.25L exemption) | Section 112A |
| LTCG (Other assets) | 12.5% | Section 112 |
| FD Interest | Slab rate (added to income) | Included in “other sources” |
| Dividend Income | Slab rate | Included in “other sources” |
| Digital Assets (Crypto) | 30% flat (no deductions) | Section 115BBH |
| Lottery/Winnings | 30% flat | Section 115BB |
Tax-Saving Investment Comparison
If you choose the old regime, these investments help reduce tax under Section 80C (₹1.5L limit):
| Investment | Returns | Lock-in | Risk | Tax on Returns |
|---|---|---|---|---|
| ELSS (Equity Mutual Fund) | 12–15% (historical) | 3 years (shortest) | High | LTCG > ₹1.25L at 12.5% |
| PPF | 7.1% (govt-set) | 15 years | Zero | Tax-free (EEE) |
| NPS via 80CCD(1B) | 8–14% (market-linked) | Until 60 | Moderate | 60% lump sum tax-free; annuity taxable |
| Sukanya Samriddhi (SSY) | 8.2% | Until girl child turns 21 | Zero | Tax-free (EEE) |
| Tax-Saving FD | 6.5–7.5% | 5 years | Zero | Interest taxable at slab |
| NSC | 7.7% | 5 years | Zero | Interest taxable (reinvested qualifies under 80C) |
Common Mistakes in Income Tax Filing
- Not comparing regimes — Many default to the new regime without checking if old regime saves more. Use our Compare Regimes mode above.
- Forgetting to claim 80CCD(1B) — The extra ₹50,000 NPS deduction is OVER AND ABOVE 80C. Saves ₹15,600 at 30% slab. See our Pension Calculator.
- Missing advance tax — Interest under 234B/234C applies on shortfall. Pay by due dates (June/Sept/Dec/March).
- Not verifying Form 26AS / AIS — Mismatch between TDS declared and AIS data triggers scrutiny. Always reconcile before filing.
- Wrong ITR form — Using ITR-1 when you have capital gains leads to defective return notice.
- Ignoring HRA calculation — HRA exemption requires rent receipts and landlord PAN (if rent > ₹1L/yr). Claim properly in old regime.
- Not claiming employer NPS — 80CCD(2) is available in BOTH regimes. Many new-regime taxpayers miss this free deduction.
Section 80D — Health Insurance Deduction Limits
| Category | Below 60 Years | Senior Citizen (60+) |
|---|---|---|
| Self, Spouse & Children | ₹25,000 | ₹50,000 |
| Parents | ₹25,000 | ₹50,000 |
| Max Total | ₹50,000 | ₹1,00,000 |
| Preventive Health Check-up | ₹5,000 (included within above limits) | |
HRA Exemption Formula
House Rent Allowance exemption under the old regime is the minimum of:
- Actual HRA received from employer
- 50% of basic salary (metro cities: Delhi, Mumbai, Chennai, Kolkata) or 40% (non-metro)
- Rent paid minus 10% of basic salary
(1) Actual HRA = ₹3,00,000
(2) 40% of basic = ₹2,40,000
(3) Rent − 10% basic = ₹1,80,000 − ₹60,000 = ₹1,20,000
HRA Exemption = ₹1,20,000 (minimum of the three)