Income Tax Calculator (India)
An income tax calculator is a free online tool that computes your income tax liability for FY 2025-26 under both old and new regimes, showing which one saves you more money.
FY 2025-26 slabs. Includes 4% cess. Does not include surcharge (applies only above ₹50L income).
How to use Income Tax Calculator (India)
- Enter your income — Type your annual salary or total income in rupees.
- Add deductions — Enter 80C, 80D, HRA, and other deductions (for old regime).
- Compare regimes — See tax under both old and new regimes side-by-side.
- Choose the better one — The tool tells you which regime saves you more tax.
Key features
- Old vs new regime comparison
- FY 2025-26 slabs (latest)
- Deductions support (80C, 80D, HRA)
- Cess and surcharge included
- Instant calculation
Income Tax in India — What You Need to Know
Income tax in India is levied by the Central Government on income earned during a financial year (April 1 to March 31). Every year, the Union Budget revises the tax slabs and exemptions. For FY 2025-26, the government has made the new regime more attractive with higher rebates and revised slabs, making tax planning more important than ever. This calculator helps you determine your exact tax liability under both regimes.
Old Regime vs New Regime — The Big Decision
The old regime allows deductions (80C for ₹1.5L, 80D for medical insurance, HRA exemption, home loan interest) but has higher tax rates. The new regime offers lower rates but almost no deductions. For someone earning ₹12L with no deductions, new regime saves tax. For someone earning ₹12L with ₹3L in deductions (80C + HRA + 80D), old regime often saves more. Our calculator compares both side-by-side to give you the answer in seconds.
Key Deductions Under Old Regime
Section 80C: Up to ₹1.5L (PPF, ELSS, LIC, principal repayment, children's tuition). Section 80D: Up to ₹25,000 for self/family health insurance, plus ₹50,000 for senior parents. Section 24(b): Up to ₹2L interest on home loan for self-occupied property. HRA: Exemption based on rent paid, basic salary, and city. Section 80CCD(1B): Additional ₹50,000 for NPS. Standard deduction: ₹50,000 for salaried.
How to Reduce Your Tax Legally
Plan investments in April, not March. Max out 80C early via ELSS or PPF. Take health insurance (80D) — protects your family and saves tax. If you have a home loan, claim the interest deduction (up to ₹2L). Contribute to NPS for extra ₹50,000 deduction. Choose the regime that fits your situation. Always consult a CA for personalised advice on complex cases.
Pro tips
- Salaried employees get a standard deduction of ₹50,000 (old) or ₹75,000 (new)
- Max 80C in April-May, not March — avoid last-minute panic
- Health insurance premium (80D) saves tax AND protects your family
- File ITR before July 31 to avoid penalties
Common use cases
- Annual tax planning for salaried employees
- Freelancers estimating advance tax
- Choosing between old and new regime
- Comparing job offers (CTC vs in-hand)
- Preparing for ITR filing
Frequently asked questions
Which tax regime is better in FY 2025-26?+
It depends on your income and deductions. If you claim more than ₹4-5 lakh in deductions (80C, HRA, home loan), old regime often wins. Otherwise, new regime is usually better.
What are the new regime tax slabs?+
New regime FY 2025-26: ₹0-3L = 0%, ₹3-7L = 5%, ₹7-10L = 10%, ₹10-12L = 15%, ₹12-15L = 20%, ₹15L+ = 30%. Rebate up to ₹7L income.
What is the standard deduction?+
₹50,000 for salaried employees under old regime, ₹75,000 under new regime (FY 2025-26).
Does this include cess?+
Yes — 4% health and education cess is added to the computed tax.
Is this calculator free?+
Yes, 100% free with unlimited calculations.
Need invoicing, billing & inventory?
Try ShopBill Pro — the full business software. Free plan available.