Income Tax Calculator

Gross Annual Salary (₹)

₹1L ₹50L

Your total annual income before deductions

Age Group

Other Income (₹)

Interest from FD, savings account, rental income etc.

Section 80C Deductions (₹)

₹0 ₹1.5L

PPF, ELSS, LIC, EPF, etc. (Max: ₹1,50,000)

Section 80D - Health Insurance (₹)

₹0 ₹1L

Health insurance premium (Self: ₹25K, Parents: ₹50K)

Home Loan Interest (₹)

₹0 ₹2L

Section 24 - Max ₹2L for self-occupied property

NPS Contribution (₹)

Section 80CCD(1B) - Additional ₹50K over 80C

HRA Received (Monthly ₹)

Rent Paid (Monthly ₹)

Tax Calculation Results

Old Tax Regime

₹23,400

Total Tax Payable

New Tax Regime

₹18,750

Total Tax Payable

💡 Recommended: New Tax Regime

You save ₹4,650 by choosing the new tax regime

Detailed Tax Breakdown

Old Tax Regime

Component	Amount
Gross Income	₹8,00,000
Standard Deduction	₹50,000
80C Deductions	₹1,00,000
Other Deductions	₹25,000
Taxable Income	₹6,25,000
Income Tax	₹22,500
Health & Education Cess	₹900
Total Tax	₹23,400

New Tax Regime

Component	Amount
Gross Income	₹8,00,000
Standard Deduction	₹75,000
80C Deductions	₹0
Other Deductions	₹0
Taxable Income	₹7,25,000
Income Tax	₹18,000
Health & Education Cess	₹750
Total Tax	₹18,750

Advantages of Using Our Income Tax Calculator

Updated Tax Slabs for FY 2025-26

Calculate taxes using the latest tax slabs announced in Union Budget 2025, including updated standard deduction amounts for both regimes.

Compare Both Tax Regimes

Instantly compare old and new tax regimes side-by-side to determine which option saves you more money based on your income and investments.

Comprehensive Deduction Support

Calculate HRA exemption, Section 80C, 80D, home loan interest, and other major deductions to get accurate tax liability estimates.

Detailed Tax Breakdown

Get component-wise breakdown showing exactly how your tax is calculated, including income tax, cess, surcharge, and rebates under Section 87A.

Age-Based Tax Calculations

Different tax treatment for senior citizens (60+) and super senior citizens (80+) with appropriate exemption limits and deductions.

Free & Accurate

Use our calculator unlimited times for free with accurate calculations based on current Income Tax Act provisions and latest amendments.

Understanding Income Tax in India (FY 2025-26)

Income tax is a direct tax levied by the Government of India on individuals, businesses, and entities based on their annual income. For FY 2025-26, taxpayers can choose between the old tax regime (with deductions) and the new tax regime (with lower rates but limited deductions).

New Tax Regime vs Old Tax Regime

The government introduced the new tax regime as an optional alternative to the existing tax structure. The key difference is that the new regime offers lower tax rates but restricts most deductions and exemptions available under the old regime.

Tax Slabs for FY 2025-26 (New Tax Regime)

Income Slab	Tax Rate
Up to ₹4,00,000	0%
₹4,00,001 - ₹8,00,000	5%
₹8,00,001 - ₹12,00,000	10%
₹12,00,001 - ₹16,00,000	15%
₹16,00,001 - ₹20,00,000	20%
₹20,00,001 - ₹24,00,000	25%
Above ₹24,00,000	30%

Tax Slabs for FY 2025-26 (Old Tax Regime)

Income Slab	Below 60 years	60-80 years	Above 80 years
Up to ₹2,50,000	0%	0%	0%
₹2,50,001 - ₹3,00,000	5%	5%	0%
₹3,00,001 - ₹5,00,000	5%	5%	5%
₹5,00,001 - ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

Key Changes in FY 2025-26

Standard Deduction: ₹75,000 for new regime, ₹50,000 for old regime
Section 87A Rebate: Up to ₹12 lakh income in new regime, ₹5 lakh in old regime
Higher Basic Exemption: ₹4 lakh in new regime vs ₹2.5 lakh in old regime
Lower Tax Rates: New regime offers lower rates but limited deductions

How to Choose Between Tax Regimes?

The choice depends on your total eligible deductions. If your annual deductions (80C, 80D, HRA, home loan interest, etc.) exceed ₹2-3 lakh, the old regime might be beneficial. For those with minimal deductions, the new regime typically results in lower tax liability.

Frequently Asked Questions about Income Tax

Which tax regime should I choose for FY 2025-26?

Choose the new regime if your total deductions are below ₹2.5 lakh. If you have higher deductions (80C, HRA, home loan), the old regime might be better. Use our calculator to compare.

Can I switch between tax regimes every year?

Yes, salaried individuals can switch between regimes every financial year. However, those with business income can switch only once during their lifetime.

What is the standard deduction for FY 2025-26?

Standard deduction is ₹75,000 for new tax regime and ₹50,000 for old tax regime. This is automatically allowed for salaried individuals.

What is Section 87A rebate?

Section 87A provides rebate up to ₹25,000 for income up to ₹12 lakh in new regime and ₹5 lakh in old regime, effectively making tax liability zero for these income levels.

How is HRA exemption calculated?

HRA exemption is the minimum of: actual HRA received, 50% of basic salary (metro) or 40% (non-metro), and actual rent paid minus 10% of basic salary.

What is Health and Education Cess?

Health and Education Cess is 4% of the total income tax and surcharge. It's applicable on all taxpayers regardless of income level and helps fund education and healthcare initiatives.

Income Tax Calculator 2025-26 (AY 2026-27)