Income Tax Calculator India
Calculate your income tax liability instantly under the Old and New Tax Regimes for FY 2025-26. Compare regimes and plan your tax-saving strategy.
Standard Deduction: ₹75,000 applied automatically
Tax Calculation Summary
Effective Rate
0.0%
Monthly Tax
₹0
Taxable Income
₹9.25 L
Cess (4%)
₹0
You save ₹70,200 with the New Regime
Tax Slab Breakdown
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4L | Nil | – |
| ₹4L – ₹8L | 5% | ₹20,000 |
| ₹8L – ₹12L | 10% | ₹12,500 |
| ₹12L – ₹16L | 15% | – |
| ₹16L – ₹20L | 20% | – |
| ₹20L – ₹24L | 25% | – |
| Above ₹24L | 30% | – |
| Total Tax | ₹32,500 | |
What is Income Tax?
Income Tax is a direct tax levied by the Government of India on the earnings of individuals, Hindu Undivided Families (HUFs), firms, and other entities during a financial year. It is governed by the Income Tax Act, 1961 and administered by the Central Board of Direct Taxes (CBDT).
Every person whose total income exceeds the basic exemption limit is required to file an Income Tax Return (ITR) and pay tax at the rates prescribed for the relevant assessment year. The tax is calculated on a slab basis — meaning different portions of your income are taxed at progressively higher rates.
Income tax revenues form a significant portion of the government's total revenue and are used to fund public infrastructure, defence, healthcare, education, and social welfare programmes. Understanding how income tax works empowers you to plan your finances better, claim legitimate deductions, and reduce your overall tax liability legally.
Old vs New Tax Regime Comparison
New Tax Regime
- ✓Lower tax rates across all income levels
- ✓Standard deduction of ₹75,000
- ✓No investment planning required
- ✓Rebate u/s 87A for income up to ₹12 lakh
- ✓Simpler filing, fewer documents
- ✗Most deductions and exemptions not available
- ✗No HRA, 80C, 80D, LTA exemptions
Old Tax Regime
- ✓Claim over 70 deductions and exemptions
- ✓Section 80C, 80D, 80E, 80G, 80TTA
- ✓HRA exemption for salaried employees
- ✓Home loan interest deduction (Sec 24b)
- ✓Leave Travel Allowance (LTA) benefit
- ✗Higher tax rates compared to new regime
- ✗Requires active tax planning and record-keeping
The New Regime is the default from FY 2023-24 onwards. You can opt for the Old Regime while filing your return if it benefits you.
Income Tax Slabs FY 2025-26
New Tax Regime
Applicable to all age groups
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Old Tax Regime
For individuals below 60 years
| Income Slab | 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): Nil up to ₹3L
Super Senior Citizens (80+): Nil up to ₹5L
Common Deductions Under Section 80C & 80D
Section 80C
Maximum deduction: ₹1,50,000
- EPF / VPF Contribution
- PPF (Public Provident Fund)
- ELSS Mutual Funds
- Life Insurance Premium
- NSC (National Savings Certificate)
- 5-Year Tax Saving FD
- Tuition Fees (max 2 children)
- Home Loan Principal Repayment
Section 80D
Health Insurance Premium
- Self & Family: Up to ₹25,000
- Parents (below 60): Up to ₹25,000
- Parents (above 60): Up to ₹50,000
- Preventive Health Check-up: ₹5,000
Maximum Deduction: ₹1,00,000 (if both self & parents are senior citizens)
Smart Tax Saving Strategies
Maximize 80C Investments
Invest ₹1.5 lakh in ELSS, PPF, or EPF to claim full Section 80C deduction under the Old Regime.
Health Insurance
Buy health insurance for self and parents. Claim up to ₹1 lakh under Section 80D.
Home Loan Benefits
Claim up to ₹2 lakh on home loan interest (Sec 24b) and principal under 80C.
NPS Contribution
Extra ₹50,000 deduction under Section 80CCD(1B) for NPS contributions, over and above 80C.
HRA Exemption
If salaried and paying rent, claim HRA exemption to significantly reduce taxable income.
Compare Regimes
Use this calculator to compare Old vs New regime every year. The better option depends on your deductions.
Frequently Asked Questions
What is the difference between Old and New Tax Regime?
Is the New Regime mandatory from FY 2025-26?
What is the rebate under Section 87A?
What is Health and Education Cess?
How is the Standard Deduction applied?
Can I claim HRA and 80C in the New Regime?
Who should choose the Old Regime?
Does this calculator include surcharge?
How accurate is this calculator?
When is the deadline to file Income Tax Returns?
Need Expert Tax Planning Assistance?
Our chartered accountants and tax consultants can help you choose the right tax regime, maximise deductions, and file your ITR hassle-free.
Talk to Our Tax Experts