Income Tax Calculator – FY 2025-2026: 2025 updates:
- No income tax for income upto Rs. 12 Lakhs. This is because of rebate applicable to new regime, which is Rs. 60,000
- Modified slab rates for new regime are as follows for FY 2025-2026 (AY 2026-2027)
| Income Tax Slabs | Tax Rate |
| Upto Rs. 4,00,000 | NIL |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
What is the Income Tax Calculator?
The Income tax calculator is an easy-to-use online tool that helps you calculate your tax liability based on your income details. It also gives you a comparison of tax liability between the old and new tax regimes to help you decide which is more beneficial for you. We have updated our tool in line with the income tax changes proposed in the Union Budget 2025 to help you estimate your tax liability for better financial planning.
How to Use the Income Tax Calculator for FY 2024-25 (AY 2025-26) and FY 2025-26 (AY 2026-27)?
Following are the steps to use the tax calculator:
Step 1: Choose the financial year for which you want your taxes to be calculated.
Step 2: Select your age accordingly. Tax liability under the old regime differs based on the age groups.
Step 3: Click on ‘Continue’
Step 4: Enter your salary, i.e. salary before deducting various exemptions such as HRA and so on. If LTA deduction is applicable to you, reduce it from salary and enter the net figure. There is a field available for exempt allowances. Enter the particulars if it applies to your case.
Step 5: Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property.
Step 6: For Income from Digital Assets, enter the net income (Sale consideration (-) Cost of Acquisition).
Step 7: Click on ‘Continue’ again.
Step 8: You can also enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA, if applicable to your case.
Step 9: Click on ‘Calculate’ to calculate your tax liability. You will be able to compare the old and new tax regimes.
How to Calculate Income Tax on Salary with Example
To calculate Income tax, include income from all sources. Include:
- Income from Salary
- Income from House Property
- Income from Capital Gains
- Income from Business/Profession
- Income from Other Sources
Income tax calculation for the Salaried
Income from salary = Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance.
Some components of your salary are exempt from tax, such as telephone bill reimbursement and leave travel allowance. If you receive HRA and live on rent, you can claim an exemption on HRA. Calculate the exempt portion of HRA using this HRA Calculator.
On top of these exemptions, a standard deduction of 50,000 is available in both old and Rs.75,000 new regime respectively.
Let’s understand income tax calculation under both old and new tax regimes by way of an example:
Neha receives a Basic Salary of Rs 1,00,000 per month. HRA of Rs 50,000. Special Allowance of Rs 21,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 40,000 and lives in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable Income (Old regime) | Taxable Income (New regime) |
| Basic Salary | 12,00,000 | – | 12,00,000 | 12,00,000 |
| HRA | 6,00,000 | 3,60,000 | 2,40,000 | 6,00,000 |
| Special Allowance | 2,52,000 | – | 2,52,000 | 2,52,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 | 20,000 |
| Standard Deduction | – | 50,000 | 50,000 | 75,000 |
| Gross Total Income from Salary | 16,50,000 | 19,97,000 |
Neha has income from interest from a savings account of Rs 8,000 and a fixed deposit interest income of Rs 12,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim under the old tax regime.
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed by Neha |
| Section 80C | Rs.1,50,000 | PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer (Neha’s contribution) = Rs 1,00,000 *12% *12 = 1,44,000 | Rs 1,50,000 |
| Section 80D | Rs 25,000 for selfRs 50,000 for parents | Medical insurance premium Rs 12,000 | Rs 12,000 |
| Section 80TTA | Rs.10,000 | Savings account interest 8,000 | Rs. 8,000 |
Calculation of gross taxable income and tax liability in India (Old regime):
| Nature | Amount | Total |
| Income from Salary | 16,50,000 | |
| Less: Std Deduction | 50,000 | |
| Income from Other Sources | 20,000 | |
| Gross Total Income | 16,70,000 | |
| Deductions | ||
| 80C | 1,50,000 | |
| 80D | 12,000 | – |
| 80TTA | 8,000 | 1,70,000 |
| Gross Taxable Income | 15,00,000 | |
| Total tax on above (including cess) | 2,73,000 |
Calculation of gross taxable income and tax liability in India (New regime):
| Nature | Amount | Total |
| Income from Salary | 19,97,000 | |
| Less: Std Deduction | 75,000 | |
| Income from Other Sources | 20,000 | |
| Gross Total Income | 19,42,000 | |
| Total tax on above (including cess) | 2,83,504 |
Illustration for Tax Calculation for Slab Rates updated as on the Budget 2025:
Mr A has a salary income of Rs. 10,75,000 for FY 2025-2026. Income from other sources is Rs. 2,00,000. The income tax calculation for Mr A for the FY 2025-2026 under new regime is as follows:
| Particulars | Amount |
| Salary | 10,75,000 |
| Less – Standard deduction | (75,000) |
| 10,00,000 | |
| Income from Other Sources | 2,00,000 |
| Gross total Income | 12,00,000 |
| Income tax: | 60,000 |
| Less – Rebate : | (60,000) |
| Tax Payable | 0 |
Note:
- It is to be noted that marginal relief on rebate is still available for the slab rates proposed on budget 2025. Please refer to article for better understanding.
- Also, this rebate of Rs. 60,000 is not applicable for income taxed under special rates.
2025 updates:
- No income tax for income upto Rs. 12 Lakhs. This is because of rebate applicable to new regime, which is Rs. 60,000
- Modified slab rates for new regime are as follows for FY 2025-2026 (AY 2026-2027)
| Income Tax Slabs | Tax Rate |
| Upto Rs. 4,00,000 | NIL |
| Rs. 4,00,001 – Rs. 8,00,000 | 5% |
| Rs. 8,00,001 – Rs. 12,00,000 | 10% |
| Rs. 12,00,001 – Rs. 16,00,000 | 15% |
| Rs. 16,00,001 – Rs. 20,00,000 | 20% |
| Rs. 20,00,001 – Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
What is the Income Tax Calculator?
The Income tax calculator is an easy-to-use online tool that helps you calculate your tax liability based on your income details. It also gives you a comparison of tax liability between the old and new tax regimes to help you decide which is more beneficial for you. We have updated our tool in line with the income tax changes proposed in the Union Budget 2025 to help you estimate your tax liability for better financial planning.
How to Use the Income Tax Calculator for FY 2024-25 (AY 2025-26) and FY 2025-26 (AY 2026-27)?
Following are the steps to use the tax calculator:
Step 1: Choose the financial year for which you want your taxes to be calculated.
Step 2: Select your age accordingly. Tax liability under the old regime differs based on the age groups.
Step 3: Click on ‘Continue’
Step 4: Enter your salary, i.e. salary before deducting various exemptions such as HRA and so on. If LTA deduction is applicable to you, reduce it from salary and enter the net figure. There is a field available for exempt allowances. Enter the particulars if it applies to your case.
Step 5: Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property.
Step 6: For Income from Digital Assets, enter the net income (Sale consideration (-) Cost of Acquisition).
Step 7: Click on ‘Continue’ again.
Step 8: You can also enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA, if applicable to your case.
Step 9: Click on ‘Calculate’ to calculate your tax liability. You will be able to compare the old and new tax regimes.
How to Calculate Income Tax on Salary with Example
To calculate Income tax, include income from all sources. Include:
- Income from Salary
- Income from House Property
- Income from Capital Gains
- Income from Business/Profession
- Income from Other Sources
Income tax calculation for the Salaried
Income from salary = Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance.
Some components of your salary are exempt from tax, such as telephone bill reimbursement and leave travel allowance. If you receive HRA and live on rent, you can claim an exemption on HRA. Calculate the exempt portion of HRA using this HRA Calculator.
On top of these exemptions, a standard deduction of 50,000 is available in both old and Rs.75,000 new regime respectively.
Let’s understand income tax calculation under both old and new tax regimes by way of an example:
Neha receives a Basic Salary of Rs 1,00,000 per month. HRA of Rs 50,000. Special Allowance of Rs 21,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 40,000 and lives in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable Income (Old regime) | Taxable Income (New regime) |
| Basic Salary | 12,00,000 | – | 12,00,000 | 12,00,000 |
| HRA | 6,00,000 | 3,60,000 | 2,40,000 | 6,00,000 |
| Special Allowance | 2,52,000 | – | 2,52,000 | 2,52,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 | 20,000 |
| Standard Deduction | – | 50,000 | 50,000 | 75,000 |
| Gross Total Income from Salary | 16,50,000 | 19,97,000 |
Neha has income from interest from a savings account of Rs 8,000 and a fixed deposit interest income of Rs 12,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim under the old tax regime.
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed by Neha |
| Section 80C | Rs.1,50,000 | PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer (Neha’s contribution) = Rs 1,00,000 *12% *12 = 1,44,000 | Rs 1,50,000 |
| Section 80D | Rs 25,000 for selfRs 50,000 for parents | Medical insurance premium Rs 12,000 | Rs 12,000 |
| Section 80TTA | Rs.10,000 | Savings account interest 8,000 | Rs. 8,000 |
Calculation of gross taxable income and tax liability in India (Old regime):
| Nature | Amount | Total |
| Income from Salary | 16,50,000 | |
| Less: Std Deduction | 50,000 | |
| Income from Other Sources | 20,000 | |
| Gross Total Income | 16,70,000 | |
| Deductions | ||
| 80C | 1,50,000 | |
| 80D | 12,000 | – |
| 80TTA | 8,000 | 1,70,000 |
| Gross Taxable Income | 15,00,000 | |
| Total tax on above (including cess) | 2,73,000 |
Calculation of gross taxable income and tax liability in India (New regime):
| Nature | Amount | Total |
| Income from Salary | 19,97,000 | |
| Less: Std Deduction | 75,000 | |
| Income from Other Sources | 20,000 | |
| Gross Total Income | 19,42,000 | |
| Total tax on above (including cess) | 2,83,504 |
Illustration for Tax Calculation for Slab Rates updated as on the Budget 2025:
Mr A has a salary income of Rs. 10,75,000 for FY 2025-2026. Income from other sources is Rs. 2,00,000. The income tax calculation for Mr A for the FY 2025-2026 under new regime is as follows:
| Particulars | Amount |
| Salary | 10,75,000 |
| Less – Standard deduction | (75,000) |
| 10,00,000 | |
| Income from Other Sources | 2,00,000 |
| Gross total Income | 12,00,000 |
| Income tax: | 60,000 |
| Less – Rebate : | (60,000) |
| Tax Payable | 0 |
Note:
- It is to be noted that marginal relief on rebate is still available for the slab rates proposed on budget 2025. Please refer to article for better understanding.
- Also, this rebate of Rs. 60,000 is not applicable for income taxed under special rates.
Income tax Calculator As amended upto Finance (No.2) Act 2024
Tax comparison under new tax regime as per Finance Bill 2025- As proposed by Finance Bill 2025