Income Tax Calculator
(Estimate your income tax liability for the current tax year)
An income tax calculator is a free online tool designed to help you quickly calculate your income tax liability depending on your earnings and applicable tax slabs.... The old vs new tax regime calculator provides you with an accurate estimate of your tax dues, which will help you compare the old and new tax regimes to identify which option is more beneficial for your financial planning. To use the income tax calculator India, you just need to enter your income details such as salary, interest income, rental income, and other relevant details. It will then quickly calculate your income tax liability, helping you to prepare a better plan and avoid surprises during tax filing season. Use the income tax calculator tool for effective tax planning and ensure compliance with present tax laws. Read more
Knowing your approximate tax burden allows for better budget planning and strategic investments. Furthermore, this foresight can provide better financial peace of mind.
Budget Smarter NowWhat is the Income Tax Calculator?
An income tax calculator is a digital tool that helps individuals and organizations calculate their income tax liability based on income, deductions, and exemptions. It accounts for current tax slab rates, any tax-saving investments (like those under Section 80C and Section 80D), and exemptions like HRA (House Rent Allowance). With user-friendly interfaces, these calculators make tax planning simple and error-free.
It is an easy and convenient way to calculate your income tax as it eliminates the need for manual calculations, which can be time-consuming and prone to errors.
How to Use Income Tax Calculator for FY 2025-26 (AY 2026-27)?
Paying income tax is a crucial part of being a responsible citizen. However, it can be a daunting task to calculate your income tax liability, especially if you have multiple sources of income or various deductions and exemptions. Fortunately, the internet has made it easier than ever to calculate your tax liability using an income tax calculator.
Read ahead to go through a step-by-step guide on how to use an income tax calculator:
The first step will require you to collect and add your basic personal information like:
The next step is to input all your income sources and details, including:
The next step is to input your deductions as they play a crucial role in reducing your taxable income. For this, you need to add the following:
Once you have input all the required details, your total income tax will be calculated for you. The results will reflect:
How to Understand Income Tax Slabs?
Income tax is a direct tax imposed on the earnings of individuals and businesses by the government, calculated based on the income earned during a financial year. A key aspect of determining your tax liability is understanding income tax slabs. Notably, the basic exemption limit has been raised to ₹4 lakh under Budget 2025-26 from the erstwhile ₹3 lakh, and the rebate amount has been increased.
For better clarity, let us break down some important terms related to income tax slabs:
Income Tax Slabs
Gross Total Income
Taxable Income
Tax Liability
How to Calculate Income Tax?
All the information may make income tax calculation seem overwhelming, but it is straightforward when you break it down. Here is how to calculate income tax in India for individuals aged 60 to 80 years and those above 80 years, using examples to make it simple.
For individuals between the ages of 60 and 80 years, income tax is calculated as follows:
Let us assume the individual has a gross total income of ₹14,50,000 per annum. Then, the tax calculation is as follows:
| Details | Old Regime (FY 25-26) | New Regime (FY 25-26) |
|---|---|---|
| Gross Total Income | ₹14,50,000 | ₹14,50,000 |
| Total Deduction | ₹2,75,000* | ₹75,000* |
| Taxable Income | ₹11,75,000 | ₹13,75,000 |
| Tax on Total Income | ₹1,62,500 | ₹86,250 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess | ₹6,500 | ₹3,450 |
| Total Tax Payable | ₹1,69,000 | ₹89,700 |
For individuals above the age of 80 years, income tax is calculated as follows:
Here is how income tax is calculated for individuals above 80 years with the same gross total income of ₹14,50,000:
| Details | Old Regime (FY 25-26) | New Regime (FY 25-26) |
|---|---|---|
| Gross Total Income | ₹14,50,000 | ₹14,50,000 |
| Total Deduction | ₹2,75,000* | ₹75,000* |
| Taxable Income | ₹11,75,000 | ₹13,75,000 |
| Tax on Total Income | ₹1,52,500 | ₹86,250 |
| Surcharge | ₹0 | ₹0 |
| Health & Education Cess | ₹6,100 | ₹3,450 |
| Total Tax Payable | ₹1,58,600 | ₹89,700 |
Key Notes:
1.Deductions Considered Under Old Regime:
- Standard Deduction:₹50,000 (Section 16)
- Section 80C:₹1,50,000 (e.g., investments in PPF, ELSS, etc.)
- Section 80CCD(1B):₹50,000 (for contributions to NPS)
- Section 80D: ₹25,000 (for Mediclaim premium)
2. Deductions Under New Regime: Standard deduction of ₹75,000
3. Other Possible Deductions (Old Regime):
- HRA (House Rent Allowance)exemptions
- Section 80G for charitable donations
- Section 80E for education loan interest
By using these tables and examples, you can calculate income tax quickly and compare the benefits of the old and new tax regimes to make an informed decision!
How to Calculate Income Tax on Salary for Salaried Employees?
For salaried employees, income tax can be calculated by evaluating their total income, considering exemptions and deductions, and applying the correct tax slab rates. It may seem complicated, but let us take a look at it step by step so you can figure it out easily.
Read ahead to go through a step-by-step guide on how to use an income tax calculator:
Calculate Gross Income
- Basic salary
- Allowances
- Bonuses and incentives
- Income from other sources, such as interest from savings accounts or rental income
Also, some allowances, like HRA and LTA (Leave Travel Allowance), may be partially or fully exempt from tax. Here is how you can calculate HRA exemption:
- Take the actual HRA received by your employer.
- If you live in a metro city, consider 50% of your basic salary.
- If you live in non-metro cities, consider 40% of your basic salary.
- Then, calculate rent paid minus 10% of your basic salary + DA (Dearness Allowance).
The lowest of these three amounts will be considered exempt from tax. Moreover, you can deduct a Standard Deduction of ₹50,000 (old regime) or ₹75,000 (new regime) from your gross salary. Once you have subtracted these exemptions, what remains is your adjusted gross income.
Calculate Net Taxable Income
After determining your gross income, your net taxable income can be derived by further deducting eligible investments and expenses under sections of the Income Tax Act 1961. Some common tax-saving instruments arelife insurance, ULIPs (Unit Linked Insurance Plans, mutual funds, etc. Let us take a look at these deductions in depth:
Section 80C:Allows deductions of up to ₹1.5 lakh on investments in instruments like PPF (Public Provident Fund), life insurance premiums, EPF (Employee Provident Fund), ELSS mutual funds, and home loan principal repayment.
Section 80CCD (1):Contributions to the NPS (National Pension System) are eligible for deductions up to 10% of your salary, subject to the ₹1.5 lakh limit under Section 80C.
Section 80CCD (1B)Allows an additional deduction of ₹50,000 if you contribute to the NPS or NPS Vatsalya schemes over and above the ₹1.5 lakh limit.
Section 80DDeduction for health insurance premiums, up to ₹25,000 for self, spouse, and children, and an additional ₹25,000 (or ₹50,000 for senior citizen parents).
Section 80EAllows deduction on interest paid for education loans.
After considering all these deductions, what you are left with is your net taxable income. It is advisable to use an online tax calculator to enter your deductions and simplify this entire process.
Tax Slab Based on Net Taxable Income
- Your total taxable income
- Whether you opt for the old or new tax regime
Calculate Taxes
Consolidate Net Taxes
Income Tax Slab Rates Under New and Old Regime
The Government of India offers two tax regimes for individuals: the New Tax Regime and the Old Tax Regime. The tax rates for AY 2026-27 for individuals (residents as well as non-residents) under the age of 60 for both the regimes are as follows:
| Old Regime | |
|---|---|
| Income Tax Slab | Income Tax Rate |
| Up to ₹ 2,50,000 | Nil |
| ₹2,50,001 - ₹5,00,000 | 5% above ₹2,50,000 |
| ₹5,00,001 - ₹10,00,000 | ₹12,500 + 20% above ₹5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% above ₹10,00,000 |
| New Regime | |
|---|---|
| Income Tax Slab | Income Tax Rate |
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 - 8,00,000 | 5% above ₹4,00,000 |
| ₹8,00,001 - ₹12,00,000 | ₹20,000 + 10% above ₹8,00,000 |
| ₹12,00,001 - ₹16,00,000 | ₹60,000 + 15% above ₹12,00,000 |
| ₹16,00,001 - ₹20,00,000 | ₹1,20,000 + 20% above ₹16,00,000 |
| ₹20,00,001 - ₹24,00,000 | ₹2,00,000+ 25% above ₹20,00,000 |
| Above ₹24,00,000 | ₹3,00,000 + 30% above ₹24,00,000 |
Old vs New Tax Regime Calculator
The Government of India provides an official income tax calculator that can help you compare your tax liability under both the old and new tax regimes. This old vs new tax regime calculator allows you to enter your details and automatically computes the tax payable based on your selected regime.
To compare your tax liability under both regimes, you need to fill in the assessment year, taxpayer type, category (Age), residential status, income from salary and other sources. Once you have entered your basic details, the calculator will ask for specific deductions and exemptions depending on the tax regime you choose.
If you choose the old tax regime, you need to enter all applicable deductions and exemptions, such as:
- Section 80C (Investments in PPF, EPF, life insurance, etc.)
- Section 80D (Health insurance premiums)
- HRA (House Rent Allowance), LTA (Leave Travel Allowance)
- Interest on home loan under Section 24(b)
The calculator will subtract these deductions from your gross total income to compute your net taxable income under the old regime.
But, if you choose the new tax regime, most deductions are not allowed under this regime, so you do not need to enter them. However, the government still allows a few deductions/exemptions under the new tax regime, such as:
- Employer’s NPS contribution (Section 80CCD(2))
- Standard deduction of ₹75,000 (FY 2025-26)
The calculator will apply the lower tax slab rates under the new regime and compute your tax liability accordingly.
After filling in the necessary information, the calculator will display:
- Total Income after deductions for both regimes
- Income Tax after relief under Section 87A (if applicable)
- Surcharge (if applicable for high-income earners)
- Health and Education Cess (4%)
- Final tax liability under both regimes
It will also show how much tax you save (if any) under the new tax regime compared to the old one. By entering your income details and deductions correctly, you can use the new tax regime calculator to decide if you want to stick with the old regime (if you have high deductions) or shift to the new regime (if you prefer lower tax rates without exemptions).
How to Calculate the Total Income Tax Liability Using the Income Tax Calculator for New Regime and Old Regime?
Understanding the basics of how income tax works can help make the process a little easier. Take these steps to calculate your total income tax liability.
Determine Your Taxable Income
The first step in calculating your income tax liability is to determine your taxable income. This is the amount of income that is subject to taxation. Your taxable income is calculated by subtracting all allowable deductions from your gross income. Allowable deductions may include expenses such as mortgage interest, charitable contributions, and certain business expenses.
Calculate Your Tax Liability
Once you have determined your taxable income and tax bracket, you can calculate your tax liability. This is the amount of tax you owe based on your taxable income and tax bracket. The tax liability is calculated by multiplying your taxable income by the tax rate for your tax bracket.
Deduct Any Tax Credits
Tax credits are deductions that are subtracted directly from your tax liability. They can reduce your tax liability or increase your tax refund. Some common tax credits include credits for childcare expenses, education expenses, and renewable energy investments. Deduct any tax credits you may be eligible for from your tax liability.
Calculate Your Total Income Tax Liability
Your total income tax liability is the amount of tax you owe after deducting any tax credits from your tax liability. This is the final amount of tax you will owe for the tax year. If you have already paid some tax during the year through paycheck withholding or estimated tax payments, subtract that amount from your total tax liability to determine how much you still owe or how much refund you may expect.
Benefits of Using Income Tax Calculator
A calculator to calculate your income tax is not just a handy tool; it is a game-changer for managing your taxes efficiently. Whether you are someone who is filing taxes for the first time or someone who struggles to understand tax calculations, here are some ways in which an income tax calculator can help you:
Accuracy
We all know how tricky manual calculations can be, and even a small mistake can mess up your entire tax filing process. With an income tax calculator, you get accurate results every time. These calculators are specially designed with advanced algorithms that minimise the chances of errors. Hence, you can confidently rely on them to calculate your taxes without worrying about missing a step or entering a wrong figure.
Speed and Convenience
The days when you had to spend hours with a pen and calculator to figure out your taxes were way in the past. Online calculators save you time and effort since they are quick and hassle-free. You can calculate taxes anytime, anywhere, whether you are at home or on the go. It is a time-saver that simplifies a process that most people dread.
User-friendly
To use an income tax calculator, you do not need to be an expert. This tool is made with simplicity in mind, so anyone can use it when needed. You just need to enter a few details, like your income, expenses, and deductions, and the calculator will handle the rest.
Better Financial Management and Tax Planning
Knowing your tax obligations in advance helps you plan your finances more effectively. With the calculator, you can figure out how much tax you need to pay and adjust your budget accordingly. When you calculate your taxes, you can assign funds for other important expenses and investments.
For example, if you realise you need to save more on taxes, you can plan investments in tax-saving options like Section 80C schemes, health insurance under Section 80D, and HRA (House Rent Allowance) benefits. This clarity not only keeps your finances in order but also ensures that you are making the most of available benefits.
Data Privacy
Who does not fear privacy breaches and sharing their financial details? But, using an income tax calculator is a safe way to handle sensitive data/information. Unlike paper-based methods that can easily fall into the wrong hands, online tools are built with strong data protection features. You can trust that your information stays private and secure with these calculators.
Understanding Tax Factors
Income tax calculators are not just tools as they also help you learn a lot. As you use the tool, you learn more about what goes into calculating your taxable income. You will start to understand how factors like your income, deductions, exemptions, tax slabs and investments impact your taxes. With time, this information makes it easier for you to plan your taxes smartly and maximize your savings.
Who is Eligible to File Income Tax Returns?
Filingincome tax returnsis mandatory for individuals whose taxable income crosses the maximum exemption limit set by the government. Simply put, if your income falls within the chattaxable slabs, you need to file your income tax.
| Exemption Limits Under Old and New Tax Regimes | |||
|---|---|---|---|
| Particulars | Old Tax Regime | New Tax Regime | |
| Same for FY 2024-25 and FY 2025-26 | FY (2024-25) [Return to be filed between April 1 - December 31 2025] |
FY (2025-26) [Return to be filed between April 1 - December 31 2026] |
|
| Individuals aged below 60 years | ₹2.5 lakh | ₹3 lakh | ₹4 lakh |
| Senior citizens aged between 60 and 80 years | ₹3 lakh | ₹3 lakh | ₹4 lakh |
| Super-senior citizens aged 80 years and above | ₹5 lakh | ₹3 lakh | ₹4 lakh |
This means that if your income exceeds these limits based on your age category, you are required to file your income tax returns. In case you are curious about calculating your taxes, tools like an online calculator can help you determine your tax payable. These calculators support calculations for the financial years 2025-26 and 2024-25, making tax planning simpler and more efficient.
Tax Filing Made Easy Using Income Tax Calculator
Now, you know that while filing your income tax may seem complicated, using an income tax calculator makes the process smooth and hassle-free. An income tax calculator helps you figure out your taxable income, deductions, and total tax liability quickly and accurately.
By simply entering details like your income, investments, and eligible deductions, the calculator does all the heavy lifting for you. It’s especially useful for comparing tax liability under the old vs. new tax regime, helping you choose the option that saves you more.
The online income tax calculator also helps you plan your finances better. You can see how investments in options like life insurance or deductions under Section 80C and Section 80D impact your tax savings.
Accessible from anywhere, these tools are designed to simplify tax filing so you can focus on making smarter financial decisions. If calculating taxes feels overwhelming, try an income tax calculator to make the process stress-free and accurate.
Wrapping Up
Income tax calculators are powerful tools that can help you estimate your tax liability. They allow for the easy input of income and expenses and quickly calculate the amount of taxes owed or refunded. These calculators are widely available and can be used to plan for tax payments and budget accordingly. However, it is important to note that old vs new tax regime calculators are not a substitute for professional tax advice.
Tax laws and regulations can be complex and subject to change, and a tax professional can provide valuable guidance and ensure that taxpayers are taking advantage of all available deductions and credits. Ultimately, income tax calculators are a useful resource, but you should ensure to use a calculator that is in line with the recent changes in the Union Budget 2024-25and 2025-26 to help you estimate your tax liability for better financial planning.
FAQs on Income Tax Calculator
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Disclaimers
You may avail of tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. Customer is advised to take an independent view from tax consultant.
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