Income Tax Calculator

It depends on your deductions. If your total deductions (80C, 80D, HRA, home loan interest, etc.) exceed approximately Rs 3 to 4 lakhs, the Old Regime often saves more tax. If you have fewer deductions, the New Regime is usually better due to lower slab rates, a higher standard deduction of Rs 75,000, and a rebate under Section 87A up to Rs 12 lakh taxable income. Use this calculator to compare both regimes side by side for your specific situation.

For FY 2025-26, the standard deduction under the New Regime is Rs 75,000, increased from Rs 50,000 in the previous year. Under the Old Regime, it remains Rs 50,000. This deduction is available to all salaried employees and pensioners automatically without requiring any investment proof or documentation.

Under the New Regime for FY 2025-26, taxpayers with taxable income up to Rs 12,00,000 can claim a rebate under Section 87A of up to Rs 60,000. This effectively makes the tax liability zero for income up to Rs 12 lakh. Under the Old Regime, the rebate limit is Rs 12,500 for taxable income up to Rs 5,00,000.

Surcharge is an additional tax on income tax itself. The rates are: 10% for income between Rs 50 lakh and Rs 1 crore, 15% for Rs 1 crore to Rs 2 crore, 25% for Rs 2 crore to Rs 5 crore, and 37% above Rs 5 crore. Under the New Regime, the maximum surcharge is capped at 25%. Marginal relief ensures the additional tax does not exceed the additional income.

Health and Education Cess is a levy of 4% charged on the total of income tax plus surcharge. This cess funds healthcare and educational initiatives across India and applies to all taxpayers regardless of income level. It is calculated after applying the rebate and surcharge.

Key deductions under the Old Regime include Section 80C (up to Rs 1.5 lakh for PPF, ELSS, EPF, LIC, home loan principal, children tuition), Section 80D (Rs 25,000 to Rs 1 lakh for health insurance), HRA exemption, Section 80E (education loan interest, no limit), Section 80G (donations to eligible institutions), Section 80TTA (Rs 10,000 on savings interest), and NPS contribution under Section 80CCD(1B) (additional Rs 50,000).

Yes, salaried employees can switch between Old and New regime every financial year when filing their return. However, individuals with business or professional income who choose the Old Regime can switch back to the New Regime only once, after which the choice becomes permanent.

Step 1: Calculate your Gross Total Income from all sources. Step 2: Subtract eligible deductions to arrive at Taxable Income. Step 3: Apply the relevant slab rates to calculate base tax. Step 4: Subtract Section 87A rebate if you are eligible. Step 5: Add surcharge if income exceeds Rs 50 lakh. Step 6: Add 4% Health and Education Cess on tax plus surcharge. The final result is your total tax payable for the year.

For FY 2025-26 (AY 2026-27), the New Regime slabs are: Up to Rs 4 lakh at nil, Rs 4 lakh to Rs 8 lakh at 5%, Rs 8 lakh to Rs 12 lakh at 10%, Rs 12 lakh to Rs 16 lakh at 15%, Rs 16 lakh to Rs 20 lakh at 20%, Rs 20 lakh to Rs 24 lakh at 25%, and above Rs 24 lakh at 30%.

Under the Old Regime for FY 2025-26, the slabs are: Up to Rs 2.5 lakh at nil, Rs 2.5 lakh to Rs 5 lakh at 5%, Rs 5 lakh to Rs 10 lakh at 20%, and above Rs 10 lakh at 30%. Senior citizens (60 to 80 years) get an exemption up to Rs 3 lakh, and super senior citizens (above 80) up to Rs 5 lakh.

The basic slab calculation applies to NRIs. However, NRIs have different rules regarding residential status determination, which affects exemptions and Double Taxation Avoidance Agreement (DTAA) benefits. NRIs cannot claim certain deductions like HRA. This calculator gives a general estimate but NRIs should consult a tax professional.

Under the New Regime (FY 2025-26), a gross salary of Rs 10 lakh with standard deduction of Rs 75,000 gives taxable income of Rs 9,25,000. Tax = Rs 20,000 (5% on Rs 4L to 8L) + Rs 12,500 (10% on Rs 8L to 9.25L) = Rs 32,500. After 87A rebate: Rs 0 (since taxable income is below Rs 12L). Under the Old Regime without deductions, tax would be Rs 1,17,000 + cess.

Financial year (FY) is the year in which you earn income (April to March). Assessment year (AY) is the year following the financial year, in which you file the return and the income is assessed. For example, income earned in FY 2025-26 (April 2025 to March 2026) is assessed in AY 2026-27.

The New Regime offers limited deduction options. You can claim: standard deduction of Rs 75,000, employer NPS contribution (Section 80CCD(2)) up to 14% of salary, interest on home loan for let-out property, and family pension deduction under Section 57. For most salaried individuals, the lower slab rates and higher 87A rebate offset the lost deductions.

Late filing attracts a penalty of Rs 5,000 under Section 234F (Rs 1,000 if income is below Rs 5 lakh). You also lose the ability to carry forward certain losses. Interest under Section 234A is charged at 1% per month on the unpaid tax from the due date. The due date for salaried individuals is typically July 31.

Yes, you can file a revised return under Section 139(5) before the end of the relevant assessment year or before the assessment is completed, whichever is earlier. There is no limit on the number of revisions. Make sure to correct all errors before the deadline to avoid interest and penalties.

All income sources are combined to calculate your gross total income. This includes salary, house property income (rental income minus deductions), business or professional income, capital gains (short-term and long-term taxed at different rates), and income from other sources (interest, dividends, etc.). Each source may have its own exemptions and deductions.

Fixed deposit interest is fully taxable under "Income from Other Sources" at your applicable slab rate. Banks deduct TDS at 10% if interest exceeds Rs 40,000 per year (Rs 50,000 for senior citizens). You can use our TDS calculator to compute TDS on your FD interest.

HRA exemption under the Old Regime is the lowest of: (1) actual HRA received, (2) 50% of salary for metro cities or 40% for non-metro, (3) rent paid minus 10% of salary. If you live in your own house or do not pay rent, no HRA exemption is available. HRA exemption is not available under the New Regime.

Agricultural income is exempt from income tax under Section 10(1). However, it is used for rate purposes if the non-agricultural income exceeds the basic exemption limit. This means agricultural income can push your other income into a higher slab rate, resulting in more tax on the non-agricultural portion.

Advance tax must be paid in quarterly installments if your estimated tax liability after TDS exceeds Rs 10,000 in a year. Most salaried individuals have adequate TDS deducted by their employer, so advance tax is typically relevant for freelancers, business owners, and those with significant non-salary income. Use our advance tax calculator to plan your installments.

Short-term capital gains (STCG) on equity shares and mutual funds are taxed at 20%. Long-term capital gains (LTCG) on equity above Rs 1.25 lakh are taxed at 12.5%. For debt mutual funds, gains are taxed at slab rates as per the amended rules. Property held for more than 2 years qualifies as long-term with 12.5% tax on gains above the exemption.

Under the New Regime, income up to Rs 4 lakh is tax-free (basic exemption). With the standard deduction of Rs 75,000 and Section 87A rebate, effectively income up to Rs 12,75,000 results in zero tax. Under the Old Regime, the basic exemption is Rs 2.5 lakh for individuals below 60 years.

Yes, under Section 80G of the Old Regime. Donations to certain funds like PM National Relief Fund qualify for 100% deduction, while donations to most registered charities get 50% deduction. The deduction is limited to 10% of adjusted gross total income for certain categories. Donations must be made through banking channels for amounts exceeding Rs 2,000.

Yes, pension received from a former employer is taxable as salary income and eligible for standard deduction. Family pension received by a dependent is taxable under "Income from Other Sources" with a deduction of Rs 15,000 or one-third of the pension, whichever is lower. Commuted pension may be partially or fully exempt depending on government or private employment.

Under the New Regime, senior citizens (aged 60 and above) get the same basic exemption of Rs 4 lakh as all other individuals. They lose the enhanced basic exemption limits available under the Old Regime (Rs 3 lakh for 60-80 and Rs 5 lakh for 80+). However, the lower slab rates may still make the New Regime beneficial if deductions are minimal.

The New Regime allows: standard deduction (Rs 75,000 for salaried), employer NPS contribution under 80CCD(2), interest on home loan for let-out property (Section 24), deduction for employment of new employees under Section 80JJAA, and family pension deduction. All other popular deductions like 80C, 80D, HRA, and LTA are not available.

Calculate your tax under both regimes using this calculator and compare. As a general rule: if your total deductions (80C + 80D + HRA + others) exceed Rs 3.75 lakh, the Old Regime may save more. If deductions are below this threshold, the New Regime with its lower rates and higher 87A rebate usually works out better.

Your employer deducts TDS from your monthly salary based on your estimated annual income and declared investments. This TDS is deposited with the government on your behalf and appears in Form 26AS. When you file your return, the total TDS is adjusted against your tax liability. If excess TDS was deducted, you get a refund. Use the TDS calculator to understand deductions.

Employer EPF contributions up to 12% of basic salary are exempt from tax but the total employer contribution to EPF, NPS, and superannuation combined is exempt up to Rs 7.5 lakh per year. Any excess is taxable. Employer NPS contribution under 80CCD(2) up to 14% of salary is deductible even under the New Regime.

Marginal relief applies to surcharge provisions. If your income slightly exceeds a surcharge threshold (like Rs 50 lakh), the additional tax including surcharge should not exceed the additional income above the threshold. This prevents a situation where earning Rs 1 more could result in disproportionately higher tax.

Rental income from let-out property is calculated as: Gross Annual Value (higher of actual rent or fair market value) minus municipal taxes paid = Net Annual Value. From this, a flat 30% standard deduction and interest paid on home loan (up to Rs 2 lakh for self-occupied, unlimited for let-out) are subtracted to get taxable income from house property.

Under the Old Regime, yes. Section 80C allows up to Rs 1.5 lakh for various investments including NPS. Additionally, Section 80CCD(1B) provides an extra Rs 50,000 deduction specifically for NPS contributions, over and above the 80C limit. So your total NPS deduction can be up to Rs 2 lakh if you also max out 80C through other investments.

Under the Old Regime, interest on a home loan for a self-occupied property gets deduction up to Rs 2 lakh under Section 24(b). Principal repayment qualifies under Section 80C (Rs 1.5 lakh limit). For first-time home buyers, Section 80EEA offered an additional Rs 1.5 lakh deduction on interest (applicable for loans sanctioned before March 2022). Consider registering your business if buying commercial property.

Yes. Equity mutual fund gains held over 1 year (LTCG) above Rs 1.25 lakh are taxed at 12.5%. Short-term gains (held less than 1 year) are taxed at 20%. Debt mutual fund gains are added to income and taxed at slab rates regardless of holding period as per current amended rules effective from April 2023.