Income Tax Calculator

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Old vs new regime side by side for FY 2025-26 with standard deduction, 80C/80D, rebate and cess.

Inputs

Gross annual income (₹)

Section 80C investments (₹)

PPF, ELSS, EPF, life insurance — max ₹1,50,000

Section 80D health insurance (₹)

HRA / other old-regime exemptions (₹)

NPS 80CCD(1B) (₹)

Age group

How to use this calculator: Income Tax Calculator

Old vs new regime side by side for FY 2025-26 with standard deduction, 80C/80D, rebate and cess. The example below is calculated by this page's real engine from the displayed inputs.

1Enter your estimated annual taxable income using the inputs available in the calculator.
2Enter only deductions or exemptions that apply to your circumstances and are supported by current tax rules.
3Check estimated taxable income, slab-based tax and total liability shown by the calculator.
4Use this result for planning only. Confirm current rules, forms, deductions, surcharge and filing requirements before submitting a tax return.

Input guide and example values

Use values from the same measurement basis and time period. Conditional fields appear only when the related option is selected.

Input	Example value	Why it matters
Gross annual income	1500000 ₹	Measured or known gross annual income used by the calculation engine.
Section 80C investments	150000 ₹	PPF, ELSS, EPF, life insurance — max ₹1,50,000
Section 80D health insurance	25000 ₹	Measured or known section 80d health insurance used by the calculation engine.
HRA / other old-regime exemptions	0 ₹	Optional input; leave the supplied default only when it matches your case.
NPS 80CCD(1B)	0 ₹	Optional input; leave the supplied default only when it matches your case.
Age group	Below 60	Select the option that matches the real installation or scenario.

Formula, derivation and worked example

India runs two parallel personal tax systems. The new regime (default since FY 2023-24) has wider, lower slabs but disallows almost every deduction except the ₹75,000 standard deduction and employer NPS. The old regime keeps 80C, 80D, HRA and home-loan interest but taxes at steeper rates from ₹5 lakh. This calculator computes both and reports which one costs less for your exact deduction profile — the crossover usually sits near ₹3.75–4 lakh of total deductions.

New regime: Taxable = Gross − ₹75,000 standard deduction

Old regime: Taxable = Gross − ₹50,000 − 80C − 80D − 80CCD(1B) − HRA

Tax = Σ (slab band × slab rate)

Rebate u/s 87A: new ₹60,000 up to ₹12,00,000 · old ₹12,500 up to ₹5,00,000

Total payable = (Tax − rebate) × 1.04 (4% health & education cess)

Substitution steps

1. New regime taxable income
1,500,000 − 75,000
= ₹1,425,000
2. New regime slab tax
400,000 @ 5% = 20,000 + 400,000 @ 10% = 40,000 + 225,000 @ 15% = 33,750
= ₹93,750
3. Rebate u/s 87A (new)
not eligible
= ₹0
4. Old regime taxable income
1,500,000 − 50,000 − 175,000
= ₹1,275,000
5. Old regime slab tax
250,000 @ 5% = 12,500 + 500,000 @ 20% = 100,000 + 275,000 @ 30% = 82,500
= ₹195,000
6. Health & education cess
tax × 4%
= ₹3,750

Computed example results

Recommended: New regime: ₹97,500; Saves ₹105,300 versus the other regime
New regime tax (incl. 4% cess): ₹97,500; Taxable ₹1,425,000
Old regime tax (incl. 4% cess): ₹202,800; Taxable ₹1,275,000
Total deductions used (old): ₹225,000
Effective tax rate: 6.50%
Monthly TDS (approx.): ₹8,125

Understanding the result

Read the main result together with supporting checks, assumptions, limits and intermediate values.

For a manual check, repeat the first equation, confirm the units and change one input at a time.

Common mistakes when using Income Tax Calculator

Do not mix units for Gross annual income (₹), Section 80C investments (₹), Section 80D health insurance (₹). A unit mismatch changes the input magnitude even when the typed number looks reasonable.
Do not leave Age group on the default choice unless that choice matches the real scenario; the selected option can change the calculation path or factor.
Do not replace the displayed New regime: Taxable = Gross − ₹75,000 standard deduction relationship with a different convention without also changing the underlying assumptions; compare like-for-like methods when checking the result.
Do not treat Recommended: New regime = ₹97,500 from the worked example as a universal answer. It belongs to the displayed example inputs and must be recalculated for the actual case.

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Standards, source trail and limitations

References show the method used. Check the current local edition, amendments and project specification before a regulated decision.

How income-tax estimates work

An income-tax estimate starts with annual income, applies eligible deductions and then calculates tax based on applicable slab rates.

The final payable amount can depend on factors such as income type, deductions, rebates, capital gains, employer benefits, surcharge and current tax regulations.

Use tax calculators for planning, not filing

A calculator helps estimate tax and compare scenarios, such as changing salary, deductions or investment amounts.

Before filing, verify every figure using official guidance and documents such as Form 16, interest certificates, investment proofs and transaction statements.

Formula

New regime: Taxable = Gross − ₹75,000 standard deduction
Old regime: Taxable = Gross − ₹50,000 − 80C − 80D − 80CCD(1B) − HRA
Tax = Σ (slab band × slab rate)
Rebate u/s 87A: new ₹60,000 up to ₹12,00,000 · old ₹12,500 up to ₹5,00,000
Total payable = (Tax − rebate) × 1.04 (4% health & education cess)

Engineering notes

Tax rules can change between financial years.
This calculator is not legal, financial or tax advice.
Consult a qualified tax professional for complex income, business income, capital gains or foreign-income matters.

Formulas explained

Tax payable = slab-wise tax on taxable income + applicable charges

Income tax is generally calculated by applying the relevant rate to each portion of taxable income that falls within a tax slab.

Gross income: Income before eligible deductions and adjustments
Taxable income: Income remaining after eligible deductions under applicable rules
Tax slab: Rate that applies to a portion of taxable income

Tax law, slabs, deductions, cess, surcharge and filing rules can change. This tool is an estimate, not tax advice.

Assumptions

Slabs are FY 2025-26 (AY 2026-27).
Surcharge on income above ₹50 lakh is not applied.
Senior-citizen basic exemption applies only in the old regime (₹3 lakh / ₹5 lakh).
Salaried standard deduction: ₹75,000 new regime, ₹50,000 old regime.

Tips

If your deductions exceed roughly ₹4,00,000, the old regime usually wins — check the comparison below.
80CCD(1B) gives an extra ₹50,000 on top of 80C, but only under the old regime.
The regime can be switched each year by salaried taxpayers.

Warnings

This is a planning estimate. Capital gains, surcharge, relief u/s 89 and business income need a full computation.
Verify the current year's slabs before filing — they change with each Finance Act.

Standards & references

Income Tax Act 1961
Finance Act — FY 2025-26 slabs
Section 87A rebate
Section 115BAC (new regime)

Frequently asked questions

Is this income-tax result final?

No. It is an estimate for planning. Final tax liability depends on current law, deductions, income type, documents and your complete financial situation.

Does the calculator include all deductions?

Use only the deductions and assumptions supported by the calculator, then verify eligibility under current official tax rules.

Should I use this result to file my tax return?

Use it as a planning estimate. Verify all details through official sources or a qualified tax professional before filing.

What inputs does the Income Tax Calculator use?

It uses Gross annual income, Section 80C investments, Section 80D health insurance, HRA / other old-regime exemptions, NPS 80CCD(1B), and Age group. Follow the unit printed for each field and choose any selectable option to match the real scenario.

What does the Income Tax Calculator calculate?

It calculates Recommended: New regime, New regime tax (incl. 4% cess), Old regime tax (incl. 4% cess), Total deductions used (old), Effective tax rate, and Monthly TDS (approx.). With the displayed default inputs, Recommended: New regime is ₹97,500.

Which formula does the Income Tax Calculator use?

The primary relationship is New regime: Taxable = Gross − ₹75,000 standard deduction. The page also shows substituted values and calculation steps so the result can be checked independently.

How can I verify a Income Tax Calculator result?

First verify the units for Gross annual income, Section 80C investments, and Section 80D health insurance. Then compare the substituted formula steps with Recommended: New regime and its displayed precision.

What are the limitations of the Income Tax Calculator?

Income Tax Calculator: This is an estimate, not a lender offer. Verify fees, taxes, rate changes, eligibility and repayment terms in the official product documents.

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