Income Tax Calculator India 2025-26 | Calculate Tax on Income

Income Tax Calculator

Gross Annual Salary (₹)

₹1L ₹50L

Your total annual income before deductions

Age Group

Age affects tax slabs in old regime only

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) - Old regime only

Section 80D - Health Insurance (₹)

₹0 ₹1L

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

Home Loan Interest (₹)

₹0 ₹2L

Section 24 - Max ₹2L for self-occupied property (Old regime)

NPS Contribution (₹)

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

HRA Received (Monthly ₹)

House Rent Allowance - exemption available in old regime only

Rent Paid (Monthly ₹)

Required for HRA exemption calculation

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 for FY 2025-26

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 with ₹60,000 rebate under Section 87A for new regime and updated standard deduction amounts for accurate calculations.

Compare Both Tax Regimes Instantly

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

Comprehensive Deduction Support

Calculate HRA exemption, Section 80C, 80D, home loan interest (Section 24), NPS contributions, 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 for both regimes.

Age-Based Tax Calculations

Different tax treatment for senior citizens (60+) and super senior citizens (80+) with appropriate exemption limits and higher thresholds under old regime.

Free & Always Updated

Use our calculator unlimited times for free with accurate calculations based on current Income Tax Act provisions, latest budget changes, and Union Budget 2025 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). The Union Budget 2025 made the new tax regime even more attractive with increased rebate under Section 87A to ₹60,000.

New Tax Regime vs Old Tax Regime for FY 2025-26

The government introduced the new tax regime as an optional alternative to the existing tax structure, which became the default regime from FY 2024-25. The key difference is that the new regime offers lower tax rates and higher standard deduction 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%	0%	0%
₹3,00,001 - ₹5,00,000	5%	5%	0%
₹5,00,001 - ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

Key Changes in FY 2025-26 Budget

Enhanced Section 87A Rebate: Increased from ₹25,000 to ₹60,000 for new regime, making income up to ₹12 lakh tax-free
Higher Standard Deduction: ₹75,000 for new regime vs ₹50,000 for old regime
Default Regime: New regime remains default but taxpayers can opt for old regime annually
Salaried Benefits: With standard deduction, effective tax-free income up to ₹12.75 lakh under new regime
Marginal Relief: Available on rebate for income slightly exceeding ₹12 lakh threshold

How to Choose Between Tax Regimes?

The choice depends on your total eligible deductions and income level. 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 or income up to ₹12 lakh, the new regime typically results in lower or zero tax liability due to the enhanced rebate.

Section 87A Rebate Explained

Section 87A provides rebate to resident individuals under both tax regimes. For FY 2025-26, new regime offers 100% rebate (up to ₹60,000) for income up to ₹12 lakh, while old regime provides rebate up to ₹12,500 for income up to ₹5 lakh. This makes new regime significantly attractive for middle-income taxpayers.

Frequently Asked Questions about Income Tax Calculator

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

Choose the new regime if your total deductions are below ₹2.5 lakh annually. The new regime offers zero tax liability up to ₹12 lakh income with ₹60,000 rebate under Section 87A. If you have higher deductions (80C, HRA, home loan interest), the old regime might be beneficial. Use our calculator to compare both regimes based on your specific situation.

What are the key changes in income tax for FY 2025-26?

Major changes include: Rebate under Section 87A increased to ₹60,000 (from ₹25,000) for new regime, standard deduction increased to ₹75,000 for new regime, and tax-free income up to ₹12 lakh under new regime. For salaried employees, with standard deduction, effective tax-free income becomes ₹12.75 lakh. The new regime remains the default choice but taxpayers can opt for old regime annually.

Can I switch between old and new tax regimes every year?

Yes, salaried individuals and those without business income can switch between tax regimes every financial year while filing ITR without any restrictions. However, individuals with business/professional income can switch from new to old regime only once in their lifetime by filing Form 10-IEA before the due date.

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 for FY 2025-26. This deduction is automatically available for salaried individuals and pensioners to account for employment-related expenses. It's deducted from gross salary before calculating taxable income.

How much income is tax-free under new regime for FY 2025-26?

Under the new regime, income up to ₹12 lakh is effectively tax-free due to the enhanced ₹60,000 rebate under Section 87A. For salaried employees, with ₹75,000 standard deduction, income up to ₹12.75 lakh becomes tax-free in practical terms. This makes the new regime highly attractive for middle-income earners.

What deductions are available in old vs new tax regime?

Old regime allows Section 80C (₹1.5L), 80D health insurance, HRA exemption, home loan interest (₹2L), LTA, NPS additional ₹50K, etc. New regime eliminates most deductions but offers lower tax rates and higher standard deduction of ₹75,000. Only specific deductions like NPS employer contribution and standard deduction remain in new regime.

How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities or 40% for non-metro cities, and (3) Actual rent paid minus 10% of basic salary. This exemption is only available under the old tax regime and can significantly reduce taxable income for those paying rent.

What are the tax slabs for senior citizens in FY 2025-26?

In old regime: Senior citizens (60-80 years) get exemption up to ₹3 lakh, super senior citizens (80+ years) up to ₹5 lakh. In new regime, tax slabs are same for all ages but higher rebate of ₹60,000 under Section 87A makes income up to ₹12 lakh tax-free for all age groups. Senior citizens should compare both regimes based on their total income and deductions.

Income Tax Tips for FY 2025-26

Compare both tax regimes annually before choosing one for optimal savings
New regime offers zero tax up to ₹12 lakh with enhanced rebate benefits
Invest in tax-saving instruments if opting for old regime for maximum deductions
Maintain all investment and expense receipts for claiming deductions
File ITR before due date to avoid penalties and interest charges
Consider HRA exemption if paying rent and choosing old regime
Plan tax-saving investments by March 31st for current financial year
Use Form 10-IEA if you have business income and want to switch regimes

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