Income Tax Calculator India (FY 2025-26)
Calculate your Indian income tax for FY 2025-26 under new and old regimes with all major deductions.
Income Tax Calculator India
FY 2025-26 (AY 2026-27) · New vs Old Regime comparison with all major deductions.
| Particulars | New Regime | Old Regime |
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Income Tax Calculator India (FY 2025-26): Compare Budget 2025 Tax Slabs
Union Budget 2025 rewrote Indian personal tax math for Financial Year 2025-26 (Assessment Year 2026-27). By widening New Tax Regime brackets all the way to ₹24,00,000 and lifting the Section 87A tax rebate to ₹60,000, salaried Indians earning up to ₹12,75,000 now pay zero income tax — while someone earning ₹25,00,000 saves ₹1,14,400 compared to earlier New Regime slabs! Yet taxpayers with hefty HRA exemptions and home loan interest can still come out ahead under the Old Regime. This FY 2025-26 Income Tax Calculator runs both regimes simultaneously across every deduction, age category, surcharge tier, and 4% cess.
What Is an Income Tax Calculator for India?
An Indian Income Tax Calculator computes your exact statutory tax obligation under the Income Tax Act, 1961 across both parallel tax systems currently in force: the Default New Tax Regime u/s 115BAC (lower progressive tax rates across seven slabs plus a ₹75,000 salaried standard deduction, with almost all Chapter VI-A deductions removed) and the Optional Old Tax Regime (steeper four-slab rates offset by Section 80C, 80D, 80CCD(1B), HRA Calculator exemptions, and Section 24(b) home loan interest).
Take Siddharth, a 34-year-old cloud architect in Mumbai earning ₹19,50,000 Gross Salary plus ₹50,000 FD interest (₹20,00,000 Gross Total Income) in FY 2025-26. For years, Siddharth loyally stayed in the Old Regime because he maxes out ₹1,50,000 in 80C, ₹50,000 in Tier-1 NPS, ₹50,000 in Section 80D health insurance (self + senior parents), and ₹2,00,000 in home loan interest — a massive ₹5,00,000 in total deductions including the ₹50,000 Old Regime standard deduction! Running his numbers in our calculator delivers a wake-up call: under FY 2025-26 slabs, the New Regime taxes him ₹1,92,400 whereas the Old Regime still bills him ₹2,73,000 — switching to the New Regime puts ₹80,600 cash straight back in Siddharth’s pocket.
How the FY 2025-26 Income Tax Formula Works (With Worked Example)
Unlike a flat percentage, India uses a progressive marginal slab system where each slice of your net taxable income is taxed only at that bracket’s rate, followed by Section 87A rebate, surcharge (above ₹50L), and 4% Health & Education Cess on the tax amount:
Let’s verify Siddharth’s exact rupee-for-rupee computation on ₹20,00,000 Gross Income under both regimes for FY 2025-26 (AY 2026-27):
- Path A — Default New Tax Regime (FY 2025-26):
- Net Taxable Income:
₹20,00,000 − ₹75,000 (Std Deduction)= ₹19,25,000 - ₹0 – ₹4,00,000 @ 0% = ₹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 – ₹19,25,000 (₹3,25,000 slice) @ 20% = ₹65,000
- Base Tax =
₹20,000 + ₹40,000 + ₹60,000 + ₹65,000= ₹1,85,000; plus 4% Cess (₹7,400) = ₹1,92,400 Total Tax (₹16,033/month TDS).
- Net Taxable Income:
- Path B — Optional Old Tax Regime (with ₹5,00,000 Deductions):
- Net Taxable Income:
₹20,00,000 − (₹50k Std + ₹1.5L 80C + ₹50k NPS + ₹50k 80D + ₹2L 24b)= ₹15,00,000 - ₹0 – ₹2,50,000 @ 0% = ₹0 | ₹2.5L – ₹5L @ 5% = ₹12,500 | ₹5L – ₹10L @ 20% = ₹1,00,000 | ₹10L – ₹15L @ 30% = ₹1,50,000
- Base Tax = ₹2,62,500; plus 4% Cess (₹10,500) = ₹2,73,000 Total Tax (₹22,750/month TDS).
- Net Taxable Income:
For incomes above ₹24,75,000, Siddharth would need more than ₹8,00,000 in total Old Regime deductions (including the ₹50k standard deduction) just to break even against the New Regime! Test your own exact breakeven threshold in our dedicated Old vs New Tax Regime Calculator.
Official Income Tax Slabs for FY 2025-26 (AY 2026-27)
The table below contrasts the seven revamped Budget 2025 New Tax Regime brackets against the unchanged Old Tax Regime brackets across taxpayer age groups:
| Income Slab (Net Taxable) | New Regime Rate (All Ages) | Old Regime (<60 Yrs) | Old Regime Senior (60–79) | Old Regime Super Sr (80+) |
|---|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | Nil | 5% | Nil | Nil |
| ₹3,00,001 – ₹4,00,000 | Nil | 5% | 5% | Nil |
| ₹4,00,001 – ₹5,00,000 | 5% (Zero via 87A ≤₹12L) | 5% (Zero via 87A ≤₹5L) | 5% (Zero via 87A ≤₹5L) | Nil |
| ₹5,00,001 – ₹8,00,000 | 5% (Zero via 87A ≤₹12L) | 20% | 20% | 20% |
| ₹8,00,001 – ₹10,00,000 | 10% (Zero via 87A ≤₹12L) | 20% | 20% | 20% |
| ₹10,00,001 – ₹12,00,000 | 10% (Zero via 87A ≤₹12L) | 30% | 30% | 30% |
| ₹12,00,001 – ₹16,00,000 | 15% | 30% | 30% | 30% |
| ₹16,00,001 – ₹20,00,000 | 20% | 30% | 30% | 30% |
| ₹20,00,001 – ₹24,00,000 | 25% | 30% | 30% | 30% |
| Above ₹24,00,000 | 30% | 30% | 30% | 30% |
Deductions Still Allowed in the New Regime & Advance Tax Rules
Contrary to popular belief, the New Tax Regime is not completely devoid of deductions beyond the ₹75,000 standard deduction (or ₹25,000 family pension deduction). Salaried employees can still claim Employer Contribution to Tier-1 NPS under Section 80CCD(2) up to 14% of Basic + DA — if your Basic Pay is ₹12,00,000/year, routing ₹1,68,000 via Corporate NPS Calculator slashes ₹52,416 off your New Regime tax bill! Additionally, employers’ EPF contributions (up to 12% of Basic within the ₹7.5L combined retiral cap), statutory gratuity/leave encashment exemptions, and let-out property home loan interest set-off against rental income (up to net zero house property income) remain valid.
Don’t overlook Advance Tax deadlines if you earn side freelance fees, rental income, or FD interest exceeding ₹10,000 in unpaid annual tax after TDS. Under Section 208, non-business taxpayers (excluding senior citizens aged 60+ without business income) must remit cumulative advance tax in four instalments: 15% by June 15, 45% by September 15, 75% by December 15, and 100% by March 15 to avoid 1% per month penal interest under Sections 234B and 234C.
Common Mistakes People Make With the Income Tax Calculator
- Missing the July 31 deadline when planning to file under the Old Regime: Because the New Regime is the statutory default, opting for the Old Regime is legally permitted only on an on-time return filed u/s 139(1) (generally July 31). Filing a belated return on August 5 automatically forces you into the New Regime and disqualifies your ₹6 lakh HRA + 80C deductions!
- Omitting savings account interest, FD accruals, and dividend credits shown in AIS: Even ₹18,000 of savings/FD interest auto-populated in your Annual Information Statement can push a ₹12,65,000 salary above ₹12,75,000 or trigger an automated Section 143(1)(a) demand notice if left out of “Other Income.”
- Buying low-return traditional insurance endowments in March just to save Old Regime tax: Locking ₹1,50,000/year into a 5% traditional insurance plan to save ₹46,800 under an Old Regime that already loses to Budget 2025’s New Regime destroys both current liquidity and 15-year wealth compounding.
Enter your gross salary, side income, and deductions in the calculator above to lock in the lower-tax regime and verify your exact monthly payroll TDS for FY 2025-26.
Related Calculators: Old vs New Tax Regime Calculator India 2025-26 · CTC to In-Hand Salary Calculator India · HRA Calculator India
How to Use This Calculator
Total Income Tax = [(Gross Total Income − Standard & Chapter VI-A Deductions) × Slab Rates − Sec 87A Rebate + Surcharge] × 1.04 (Cess)
- Enter your 'Gross Salary / Income (₹)' for FY 2025-26 (AY 2026-27), add any 'Other Income' (FD interest, dividends, net rental income), and select your 'Taxpayer Type' (Below 60, Senior 60–79, or Super Senior 80+) and 'Employment Type'.
- Under 'Old Regime Deductions', enter your actual tax-saving investments and exemptions: Section 80C (max ₹1,50,000), Section 80D health insurance (up to ₹75,000/₹1,00,000), HRA Exemption, and NPS 80CCD(1B) (max ₹50,000).
- Add 'Home Loan Interest 24(b)' (up to ₹2,00,000 for self-occupied property) and any 'Other Deductions' such as Section 80E education loan interest or Section 80G donations.
- Review the side-by-side 'New Regime Tax' vs 'Old Regime Tax' summary cards, exact rupee savings, and effective tax rates.
- Inspect the 'Detailed Comparison' table (showing Standard Deduction, Section 87A Rebate, Surcharge, 4% Cess, and Monthly TDS) and click 'New Regime Slab-wise Breakdown' to verify every slab tranche.