Income Tax Calculator

Income tax in India is calculated based on progressive tax slabs. Under the New Regime (FY 2025-26), income up to ₹4 lakh is exempt, 5% for ₹4-8 lakh, 10% for ₹8-12 lakh, 15% for ₹12-16 lakh, 20% for ₹16-20 lakh, and 30% above ₹20 lakh. The Old Regime has different slabs with higher exemptions.

The New Regime (with lower rates but fewer deductions) is generally better if you have limited investments. The Old Regime (higher rates but more deductions) is better if you claim significant deductions under 80C, 80D, HRA, etc. Use our calculator to compare both regimes.

Under the New Regime (FY 2025-26), taxable income of ₹12 lakh has zero tax due to the rebate under Section 87A. Under the Old Regime, with standard deduction and 80C deductions, tax may vary from ₹50,000 to ₹1,00,000 depending on your investments.

Section 87A provides a tax rebate of up to ₹25,000 (or the total tax amount, whichever is lower) for individuals with taxable income up to ₹12 lakh under the New Regime (FY 2025-26). For the Old Regime, the rebate is available for income up to ₹5 lakh.

Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, EPF, ELSS mutual funds, life insurance premiums, NSC, tax-saving FDs, Sukanya Samriddhi Yojana, and home loan principal repayment.

Under the New Regime FY 2025-26, on ₹15 lakh salary (after standard deduction of ₹75,000), taxable income is ₹14,25,000. Tax = ₹1,23,750 + 4% cess = ₹1,28,700. Under Old Regime with maximum deductions, it could be lower.

Standard deduction of ₹75,000 is available for salaried individuals under both New and Old tax regimes for FY 2025-26. This is a flat deduction from gross salary.

HRA exemption is the minimum of: (1) Actual HRA received, (2) Rent paid minus 10% of salary, (3) 50% of salary for metro cities (40% for non-metros). HRA can only be claimed under the Old Tax Regime.

Short-term capital gains (holding < 12 months for listed shares) are taxed at 15%. Long-term capital gains (holding > 12 months) above ₹1 lakh are taxed at 10%. For other assets, LTCG is taxed at 20% with indexation benefit.

Income tax return filing is mandatory if your gross income exceeds ₹2.5 lakh (₹3 lakh for senior citizens, ₹5 lakh for super senior citizens). However, filing a nil return is recommended even if income is below the taxable limit to maintain a clean tax record.

Income tax calculator for Assessment Year 2025-26 (Financial Year 2024-25) helps compute tax liability for the previous fiscal year. It uses the applicable tax slabs and rates for AY 2025-26 under both New and Old Regimes.

For a ₹15 lakh salary (FY 2025-26): gross ₹15L, standard deduction ₹75,000, taxable ₹14.25L. New Regime: ₹4L nil, ₹4-8L at 5% = ₹20,000, ₹8-12L at 10% = ₹40,000, ₹12-14.25L at 15% = ₹33,750. Total tax = ₹93,750 + 4% cess = ₹97,500.

The income tax calculator for FY 2025-26 (AY 2026-27) uses the latest tax slabs: up to ₹4L nil, ₹4-8L 5%, ₹8-12L 10%, ₹12-16L 15%, ₹16-20L 20%, ₹20-24L 25%, above ₹24L 30%. Section 87A rebate up to ₹25,000 for income up to ₹12L.

Yes, downloadable income tax calculator Excel sheets are available for FY 2025-26. They include automatic tax computation for both regimes, 80C/80D deduction calculators, and HRA exemption calculators. Use our online calculator for instant web-based results without downloads.

The New Tax Regime calculator uses FY 2025-26 slab rates with lower taxes but minimal deductions. Key features: no HRA exemption, no 80C/80D deductions, standard deduction of ₹75,000, and 87A rebate up to ₹25,000 for income up to ₹12 lakh.