What is the Income Tax Calculator?
An Income Tax Calculator is an online tool that helps evaluate taxes based on a person's income, respective tax slab and tax liability. Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax. One can choose between the old and new tax regimes, each having different tax rates and deductions.
Last Updated: 10 January 2026
How to Pay Zero Tax on ₹12.75 Lakh Income in FY 2025-26
Under the New Tax Regime for FY 2025-26, you can pay zero tax on income up to ₹12.75 lakh with the 87A Rebate. Here's how: With Standard Deduction of ₹75,000 and Section 87A Rebate of ₹60,000, your effective zero-tax limit is ₹12.75 lakh. This means if your total income is ₹12.75 lakh or less, you pay no tax under the New Regime.
An Income Tax Calculator is an online tool that helps evaluate taxes based on a person's income, respective tax slab and tax liability. Individuals falling under the taxable income bracket are liable to pay a specific portion of their net annual income as tax. One can choose between the old and new tax regimes, each having different tax rates and deductions.
Income tax can be paid as tax deducted at source (TDS) during the monthly salary disbursement or through the income tax returns portal managed by the Central Board of Direct Taxes (CBDT). The provision for online payment of taxes ensures that individuals pay their stipulated dues based on any earnings generated from other sources.
The Income Tax Calculator on this page is aligned with the updates announced in the Union Budget for FY 2025-26 and AY 2026-27. It enables you to compare your tax liability between the old and new tax regimes, making choosing the more beneficial option easier. Once you calculate your income tax, you can download your tax calculation summary as a PDF for your records. It's especially useful if you do not understand the section, provisions and technical aspects of the government's income tax filing portal.
Budget 2025 Updates on Income Tax - Standard Deduction ₹75,000
The Union Budget 2025 introduced several significant changes in the income tax regime. Here are the key highlights:
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The income tax rebate was hiked to ₹60,000 from the previous rebate limit of ₹25,000. Meaning, no tax liability on income up to ₹12 lakh under the new tax regime.
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The TDS limit on rent has been increased to ₹50,000 per month for FY 2025-26.
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The limit on tax deduction on interest for senior citizens has been increased from ₹50,000 to ₹1,00,000.
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In the case of Tax Collected at Source (TCS) on remittances under the Reserve Bank of India's (RBI) Liberalized Remittance Scheme, the threshold has been increased to ₹10 Lakhs from the earlier limit of ₹7 Lakhs.
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Furthermore, TCS has been removed for education loans acquired to specified financial institutions.
Key Features
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Compare Tax Regimes
Easily compare your tax liability under both Old and New tax regimes to determine which option saves you more money.
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Accurate Calculations
Get precise tax calculations based on the latest tax slabs, deductions, and exemptions updated for FY 2025-26.
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Download PDF Report
Once you calculate your income tax, download your complete tax calculation summary as a PDF for your records and future reference.
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Comprehensive Income Sources
Calculate tax on all income sources including salary, house property, capital gains, and other sources.
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Tax Planning Made Easy
Plan your investments and deductions effectively to minimize your tax liability and maximize savings.
Income Tax Slab Rates for FY 2025-26
The income tax rates vary based on the tax regime you choose. Below are the detailed tax slabs for both regimes:
New Tax Regime Slabs 2025-26 - Tax-Free Limit ₹12.75 Lakh
| Income Range | Tax Rate |
|---|
| Up to ₹4 lakh | NIL |
| ₹4 lakh - ₹8 lakh | 5% |
| ₹8 lakh - ₹12 lakh | 10% |
| ₹12 lakh - ₹16 lakh | 15% |
| ₹16 lakh - ₹20 lakh | 20% |
| ₹20 lakh - ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Note: No income tax for income up to ₹12 Lakhs. This is because of a rebate applicable to the new regime, which is ₹60,000. But rebates are not applicable for special tax income.
Old Tax Regime Slabs
Individuals Below 60 Years
| Income Range | Tax Rate |
|---|
| Up to ₹2.5 lakh | NIL |
| ₹2.5 lakh - ₹5 lakh | 5% |
| ₹5 lakh - ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Senior Citizens (60-80 Years)
| Income Range | Tax Rate |
|---|
| Up to ₹3 lakh | NIL |
| ₹3 lakh - ₹5 lakh | 5% |
| ₹5 lakh - ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Super Senior Citizens (Above 80 Years)
| Income Range | Tax Rate |
|---|
| Up to ₹5 lakh | NIL |
| ₹5 lakh - ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Surcharge and Education Cess
If your income exceeds a certain threshold, you will incur additional taxes on top of the existing rates. This additional tax specifically targets high-income earners.
The surcharge rates are as follows:
- •10% of Income tax if total income > ₹50 lakh and < ₹1 crore,
- •15% of Income tax if total income > ₹1 crore and < ₹2 crore,
- •25% of Income tax if total income > ₹2 crore and < ₹5 crore,
- •37% of Income tax if total income > ₹5 crore
Note: The highest surcharge rate of 37% has been reduced to 25% under the new tax regime.
| Total Income Range | Surcharge Rate (Old Regime) | Surcharge Rate (New Regime) |
|---|
| ₹50 lakh - ₹1 crore | 10% | 10% |
| ₹1 crore - ₹2 crore | 15% | 15% |
| ₹2 crore - ₹5 crore | 25% | 25% |
| Above ₹5 crore | 37% | 25% |
Additional Health and Education cess at the rate of 4% will be added to the income tax liability.
There are certain deductions/exemptions which are not available under the New regime.
Rebate Under Section 87A
Taxpayers with taxable income within specified limits can claim a rebate, which can reduce their tax liability to zero:
| Tax Regime | Rebate Amount | Maximum Taxable Income for Zero Tax |
|---|
| Old Regime | ₹12,500 | Up to ₹5 lakh |
| New Regime | ₹60,000 | Up to ₹12 lakh |
Note: *From FY 2025-26, rebate is not applicable for income charged under special rates. At any financial year, rebate is not applicable on long term capital gains under section 112A.
Standard Deduction
Salaried employees are eligible for a standard deduction on their salary income:
| Tax Regime | Standard Deduction Amount |
|---|
| Old Regime | ₹50,000 |
| New Regime | ₹75,000 |
The standard deduction is automatically applied by our calculator if you have salary income, eliminating the need for manual calculation.
Calculation of Income Tax on Salary
To calculate Income tax, include income from all sources. Include:
- •Income from Salary
- •Income from House Property
- •Income from Capital Gains
- •Income from Business/Profession
- •Income from Other Sources
Income Tax Calculation for Salaried Employees
Here's a simplified overview of calculating your income tax on salary:
- Calculate your gross salary, which includes basic salary, allowance, bonus and other taxable components.
- Subtract exemptions from your gross salary. Common components that are exempted from income tax include - House Rent Allowance (HRA), Leave Travel Allowance (LTA) and Standard Deduction. Please note that these exemptions are only available under the Old Tax Regime.
- Claim deductions under different sections of the Income Tax Act. For example - Section 80C (for Provident Fund, PPF or life insurance), Section 80D (for health insurance premiums) and Section 24b (for home loan interest). All these deductions are applicable under the Old Tax Regime.
- Calculate your taxable income by subtracting these deductions and exemptions from your gross salary.
- Apply tax rates by calculating the applicable tax rate for each slab based on your taxable income.
- Now, calculate and add the tax liability for each slab to get your total tax.
- Consider if there is any rebate and surcharge under Section 87A, if applicable, based on your circumstances.
- Add the health and education cess, currently 4%, to your total tax liability.
Considering these factors, you can finally determine your total tax liability for a particular financial year. Please note that most deductions/exemptions mentioned above are applicable only in the Old Tax Regime.
Income from salary = Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance.
Some components of your salary are exempt from tax, such as telephone bill reimbursement and leave travel allowance. If you receive HRA and live on rent, you can claim an exemption on HRA. Calculate the exempt portion of HRA using this HRA Calculator.
On top of these exemptions, a standard deduction of ₹50,000 is available under the old regime, and ₹75,000 under the new regime.
For taxation under the New Tax Regime, let us consider an example where the salary income of an individual is ₹18,00,000 per annum. Here's how the income tax on the salary income is calculated:
| Category | Amount |
|---|
| Salary Income | ₹18,00,000 |
| Standard Deduction | ₹75,000 |
| Salary Income (-) Standard Deduction | ₹17,25,000 |
| Income from Other Sources | ₹35,000 |
| Total Taxable Income | ₹17,60,000 |
Applicable Tax Rate as per the New Regime
Here's how the taxable income will be taxed as per the new regime:
| Tax Slab | Applicable Tax Rate | Amount |
|---|
| Up to ₹4 Lakhs | Nil | ₹0 |
| More than ₹4 Lakhs and up to ₹8 Lakhs | 5% | ₹20,000 |
| More than ₹8 Lakhs and up to ₹12 Lakhs | 10% | ₹40,000 |
| More than ₹12 Lakhs and up to ₹16 Lakhs | 15% | ₹60,000 |
| More than ₹16 Lakhs and up to ₹20 Lakhs | 20% | ₹32,000 |
| Income Tax | - | ₹1,52,000 |
| Health & Education Cess | 4% of the tax amount | ₹6,080 |
| Total tax to be paid | - | ₹1,58,080 |
Let's understand income tax calculation under both old and new tax regimes by way of an example:
Neha receives a Basic Salary of ₹1 lakh per month. HRA of ₹50,000. Special Allowance of ₹21,000 per month. LTA of ₹20,000 annually. Neha pays a rent of ₹40,000 and lives in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable Income (Old regime) | Taxable Income (New regime) |
|---|
| Basic Salary | 12,00,000 | - | 12,00,000 | 12,00,000 |
| HRA | 6,00,000 | 3,60,000 | 2,40,000 | 6,00,000 |
| Special Allowance | 2,52,000 | - | 2,52,000 | 2,52,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 | 20,000 |
| Standard Deduction | - | 50,000 | 50,000 | 75,000 |
| Gross Total Income from Salary | - | - | 16,50,000 | 19,97,000 |
Neha has income from interest from a savings account of ₹8,000 and a fixed deposit interest income of ₹12,000 during the year. Neha has made some investments to save income tax. PPF investment of ₹50,000. ELSS purchase of ₹20,000 during the year. LIC premium of ₹8,000. Medical insurance paid of ₹12,000. Here are the deductions Neha can claim under the old tax regime.
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed by Neha |
|---|
| Section 80C | ₹1.5 lakh | PPF deposit ₹50,000, ELSS investment ₹20,000, LIC premium ₹8,000. EPF deducted by employer (Neha's contribution) = ₹1,00,000 *12% *12 = 1,44,000 | ₹1.5 lakh |
| Section 80D | ₹25,000 for self
₹50,000 for parents | Medical insurance premium ₹12,000 | ₹12,000 |
| Section 80TTA | ₹10,000 | Savings account interest 8,000 | ₹8,000 |
Calculation of gross taxable income and tax liability in India (Old regime):
| Nature | Amount | Total |
|---|
| Income from Salary | 16,50,000 | - |
| Income from Other Sources | 20,000 | - |
| Gross Total Income | - | 16,70,000 |
| Deductions | - | - |
| 80C | 1,50,000 | - |
| 80D | 12,000 | - |
| 80TTA | 8,000 | 1,70,000 |
| Gross Taxable Income | - | 15,00,000 |
| Total tax on above (including cess) | - | 2,73,000 |
Calculation of gross taxable income and tax liability in India (New regime):
| Nature | Amount | Total |
|---|
| Income from Salary | 19,97,000 | - |
| Income from Other Sources | 20,000 | - |
| Gross Total Income | - | 20,17,000 |
| Total tax on above (including cess) | - | 2,12,420 |
Benefits of Income Tax Calculator
Using an online income tax calculator offers you numerous benefits, which are as follows:
Accuracy
An online income tax calculator ensures accurate tax calculation, reducing the errors that come with the traditional method of calculating taxes manually.
Speed and Convenience
Calculate your taxes anytime, anywhere. An online calculator eliminates the need to set aside a specific time and place for calculations, making the process quick and convenient compared to conventional methods.
Easy to Use
It is a user-friendly tool that is free to use. You simply enter your financial and personal details to get an accurate estimate of your tax obligations.
Improves Management of Expenses
You have the opportunity to estimate your tax liability well in advance. This can help you allocate your funds efficiently.
Plan Your Finances in a Better Way
By learning about your tax liability beforehand, plan your finances better and invest in tax-saving instruments like mutual funds, fixed deposits, loans, ELSS, and PPF.
Data Privacy
Calculating your income tax on paper can expose your financial data to potential fraudsters. Online tax calculators ensure your financial information remains confidential, protecting it from unauthorised access.
Using an income tax calculator or new tax regime calculator simplifies your tax planning and helps you manage your finances more efficiently. This tool provides accuracy, convenience and valuable insights, making it an essential part of your financial toolkit.
Start using the income tax calculator today to understand your tax obligations better and optimise your tax savings!
