Income Tax Calculator India
FY 2025-26 (AY 2026-27)
Compare Old vs New Tax Regime instantly. Calculate tax with 80C, 80D, HRA, NPS, home loan deductions. Slab-wise breakdown, surcharge & cess — all in one free tool.
Tax Liability Comparison
Income Breakdown (New Regime)
📊 Slab-Wise Tax Calculation Breakdown
| Income Slab | Rate | Taxable (New) | Tax (New) | Taxable (Old) | Tax (Old) |
|---|
What is Income Tax in India?
Income tax is a direct tax levied by the Government of India on income earned by individuals, HUFs (Hindu Undivided Families), companies, and other entities during a financial year. It is governed by the Income Tax Act 2025 (which consolidated and replaced the Income Tax Act 1961, effective April 1, 2026) and administered by the Central Board of Direct Taxes (CBDT).
Every individual whose total income exceeds the basic exemption limit is required to file an Income Tax Return (ITR) and pay the applicable tax. India uses a progressive slab-based tax system — higher income is taxed at higher rates. Since FY 2020-21, India has had two parallel tax regimes — the New Tax Regime (default from FY 2023-24) and the optional Old Tax Regime.
The most significant development for FY 2025-26 (AY 2026-27) is that income up to ₹12 lakh is completely tax-free under the New Regime via the expanded Section 87A rebate of ₹60,000. For salaried individuals, after the ₹75,000 standard deduction, effective tax-free salary extends to ₹12.75 lakh — a historic milestone for Indian taxpayers.
Income Tax Slabs FY 2025-26 (AY 2026-27)
New Tax Regime Slabs — FY 2025-26 (Default)
The New Tax Regime (Section 115BAC) is the default regime for FY 2025-26. It offers lower rates with uniform slabs for all age groups:
| Annual Income Slab | Tax Rate | Tax on This Slab | Cumulative Tax |
|---|---|---|---|
| Up to ₹4,00,000 | NIL | ₹0 | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | Up to ₹20,000 | Up to ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | Up to ₹40,000 | Up to ₹60,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | Up to ₹60,000 | Up to ₹1,20,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | Up to ₹80,000 | Up to ₹2,00,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | Up to ₹1,00,000 | Up to ₹3,00,000 |
| Above ₹24,00,000 | 30% | 30% on excess | ₹3,00,000 + 30% on excess |
Section 87A Rebate (New): Full tax rebate up to ₹60,000 for taxable income ≤ ₹12,00,000 → Zero tax. Standard Deduction: ₹75,000 auto-applied for salaried/pensioners → Gross salary up to ₹12,75,000 = ZERO tax. Max Surcharge: Capped at 25% (no 37% bracket).
Old Tax Regime Slabs — FY 2025-26
The Old Regime allows 70+ deductions but has higher effective rates for most income levels:
| Annual Income Slab | Below 60 yrs | Senior (60–80 yrs) | Super Senior (80+) |
|---|---|---|---|
| Up to ₹2,50,000 | NIL | NIL | NIL |
| ₹2,50,001 – ₹3,00,000 | 5% | NIL | NIL |
| ₹3,00,001 – ₹5,00,000 | 5% | 5% | NIL |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Section 87A Rebate (Old): Up to ₹12,500 for taxable income ≤ ₹5,00,000 → Zero tax up to ₹5.5L (salaried). Standard Deduction: ₹50,000.
Old vs New Tax Regime — Complete Comparison
Choosing the right regime is the most impactful tax decision you'll make. 72% of salaried taxpayers chose the New Regime for AY 2024-25 (CBDT data), but the Old Regime still wins for high-deduction profiles:
🆕 New Tax Regime (Default)
- Zero tax up to ₹12L (₹12.75L salaried)
- Lower slab rates across all income levels
- Standard Deduction: ₹75,000
- Employer NPS 80CCD(2) allowed
- Uniform slabs — no age-based differentiation
- Max surcharge: 25% (capped)
- Simpler compliance — fewer documents
- Default regime — auto-selected by employer
📘 Old Tax Regime (Optional)
- 70+ deductions and exemptions available
- Section 80C up to ₹1,50,000
- HRA exemption under Section 10(13A)
- Home Loan Interest Sec 24(b) up to ₹2L
- 80D health insurance, 80E education loan
- NPS 80CCD(1B) additional ₹50,000
- Higher basic exemption for senior citizens
- Surcharge up to 37% for highest incomes
Side-by-Side Tax Comparison at Key Income Levels
| Annual Income | New Regime Tax | Old Regime Tax* | Savings (New) | Who Benefits from Old? |
|---|---|---|---|---|
| ₹8 LPA | ₹0 (87A rebate) | ₹0 (87A rebate) | — | Doesn't matter at this level |
| ₹10 LPA | ₹54,600 | ₹0* (with deductions) | Old wins | Those with 80C + 80D + HRA claims |
| ₹12 LPA | ₹0 (87A rebate) | ₹1,04,000 | ₹1,04,000 | New Regime usually better |
| ₹15 LPA | ₹1,04,000 | ₹1,87,200* | ₹83,200 | Old only if deductions > ₹4.25L |
| ₹20 LPA | ₹2,57,400 | ₹3,27,600* | ₹70,200 | Old only if deductions > ₹5.75L |
| ₹30 LPA | ₹5,57,400 | ₹6,39,000* | ₹81,600 | Old regime rarely wins here |
| ₹50 LPA | ₹11,57,400 + surcharge | ₹13,89,000* + surcharge | New wins significantly | Very rarely |
*Old regime figures assume basic deductions only (80C ₹1.5L + 80D ₹25K + standard deduction ₹50K). Including HRA + home loan interest can change results significantly. Use the calculator above for your exact numbers.
When Does the Old Regime Win?
- You pay significant rent in a metro city and receive HRA — HRA exemption can be ₹1.5L–₹3L+
- You have an active home loan with ₹2L interest on self-occupied property (Section 24b)
- You maximise 80C (₹1.5L) + NPS 80CCD(1B) (₹50K) + 80D (₹50K) = ₹2.5L in deductions
- Total deductions exceed the breakeven threshold: ~₹4.25L at ₹15L income, ~₹5.75L at ₹20L income
- You are a senior citizen with high interest income (80TTB ₹1L deduction in Old Regime)
How to Calculate Income Tax — Step by Step
Follow these 6 steps to manually calculate your income tax liability:
Calculate Gross Total Income
Sum all income sources: Salary + House Property income (rent − 30% standard deduction − municipal tax) + Business/Profession + Capital Gains + Other Sources (FD interest, dividends, etc.).
Subtract Standard Deduction
New Regime: ₹75,000 auto-deducted for salaried/pensioners. Old Regime: ₹50,000. This reduces gross salary to "Net Salary Income" before other deductions.
Subtract HRA & Other Exemptions (Old Regime Only)
Calculate HRA exemption (lowest of: actual HRA, 50%/40% of basic, rent paid − 10% of basic). Subtract from salary. Add other Section 10 exemptions (LTA, etc.).
Subtract Chapter VI-A Deductions (Old Regime Only)
Subtract: 80C (max ₹1.5L) + 80CCD(1B) NPS (max ₹50K) + 80D (max ₹25K–₹1L) + 24(b) home loan interest (max ₹2L) + 80E + 80G + 80TTA (max ₹10K). This gives Net Taxable Income.
Apply Tax Slabs & Check Section 87A Rebate
Apply the progressive tax slabs to Net Taxable Income. Check if Section 87A rebate applies: New Regime — full rebate (≤₹12L taxable); Old Regime — ₹12,500 rebate (≤₹5L taxable). Net Tax = Slab Tax − 87A Rebate.
Add Surcharge + 4% Cess
If income > ₹50L, add surcharge on tax (10%/15%/25%). Add marginal relief if applicable. Then add 4% Health & Education Cess on (Tax + Surcharge). Final Tax = Tax + Surcharge + Cess.
Complete List of Income Tax Deductions (FY 2025-26)
Old Regime — Major Deductions
Section 80C
Old OnlyPPF, ELSS, EPF (employee), NSC, Life Insurance premium, SCSS, Sukanya Samriddhi, 5-yr bank FD, children's tuition fees, home loan principal repayment
Section 80D
Old OnlyHealth insurance premium: Self/family ₹25,000 (₹50,000 if 60+); Parents ₹25,000 (₹50,000 if senior parents); Preventive health check-up ₹5,000
Section 80CCD(1B) — NPS
Old OnlyAdditional NPS contribution above the 80C limit. Available for both salaried and self-employed. Over and above the ₹1.5L 80C bucket.
Section 24(b) — Home Loan
Old OnlyInterest paid on home loan for self-occupied property. For let-out property, full interest deductible against rental income (with set-off limits).
HRA Exemption 10(13A)
Old OnlyHouse Rent Allowance exemption = Lowest of: Actual HRA received; 50% basic (metro)/40% (non-metro); Rent paid − 10% of basic.
Section 80E
Old OnlyInterest paid on education loan for higher education of self, spouse, children, or student under legal guardianship. No maximum limit — 100% of interest deductible.
Section 80G — Donations
Old OnlyDonations to approved funds, charitable institutions, relief funds. 50% or 100% of donation amount deductible depending on the institution type.
Section 80TTA / 80TTB
Old Only80TTA: Savings bank interest for non-seniors up to ₹10,000. 80TTB: All interest (bank, post office) for senior citizens (60+) up to ₹1,00,000.
Deductions Available in BOTH Regimes
Standard Deduction
Both RegimesAuto-applied for all salaried employees and pensioners. No documentation required. New Regime: ₹75,000 | Old Regime: ₹50,000.
Employer NPS 80CCD(2)
Both RegimesEmployer's contribution to NPS Tier-I is deductible under 80CCD(2). Private sector: up to 10% of basic salary. Government employees: up to 14% of basic salary.
Section 80JJAA
Both Regimes30% of additional wages paid to new employees for 3 consecutive years. Available for businesses with formal bookkeeping. Subject to specific conditions.
Surcharge & Health Education Cess (FY 2025-26)
In addition to the slab tax, high-income taxpayers pay a surcharge, and all taxpayers pay a 4% cess:
| Total Income | Surcharge Rate (New Regime) | Surcharge Rate (Old Regime) | Notes |
|---|---|---|---|
| Up to ₹50 Lakh | NIL | NIL | No surcharge |
| ₹50L – ₹1 Crore | 10% | 10% | Marginal relief applies |
| ₹1 Crore – ₹2 Crore | 15% | 15% | Marginal relief applies |
| ₹2 Crore – ₹5 Crore | 25% | 25% | — |
| Above ₹5 Crore | 25% (Capped) | 37% | New Regime capped at 25% — major saving for ultra-HNI |
| + 4% Health & Education Cess on (Tax + Surcharge) in both regimes for all taxpayers | |||
Section 87A Rebate — Explained
Section 87A is the most impactful provision for middle-income taxpayers — it completely eliminates tax liability for eligible individuals:
| Parameter | New Tax Regime | Old Tax Regime |
|---|---|---|
| Maximum Rebate | ₹60,000 | ₹12,500 |
| Eligible up to Taxable Income of | ₹12,00,000 | ₹5,00,000 |
| Effective Tax-Free Income (Salaried) | ₹12,75,000 (after ₹75K std.ded.) | ₹5,50,000 (after ₹50K std.ded.) |
| Applies to Special Rate Income? | ❌ No (LTCG, STCG, lottery excluded) | ❌ No |
| Applies to NRI? | ❌ Not available for NRIs | ❌ Not available for NRIs |
Important: If your taxable income is ₹12,00,001 under the New Regime — just ₹1 above the threshold — you lose the entire ₹60,000 rebate and pay full tax on ₹12,00,001. This "marginal relief" cliff means careful tax planning near the ₹12L boundary is critical.
Income Tax Quick Reference Table — FY 2025-26
Pre-calculated tax at common salary levels for quick reference (New Regime, salaried individual, after ₹75,000 standard deduction, including 4% cess):
| Gross Salary | Taxable Income | New Regime Tax | Effective Rate | Old Regime (Basic Ded.)* | Savings (New vs Old) |
|---|---|---|---|---|---|
| ₹5 LPA | ₹4.25L | ₹0 | 0% | ₹0 | — |
| ₹8 LPA | ₹7.25L | ₹0 | 0% | ₹52,000 | +₹52,000 |
| ₹10 LPA | ₹9.25L | ₹0 | 0% | ₹1,04,000 | +₹1,04,000 |
| ₹12 LPA | ₹11.25L | ₹0 | 0% | ₹1,56,000 | +₹1,56,000 |
| ₹12.76 LPA | ₹12.01L | ₹54,600 | 4.28% | ₹1,60,160 | +₹1,05,560 |
| ₹15 LPA | ₹14.25L | ₹1,04,000 | 6.93% | ₹1,87,200 | +₹83,200 |
| ₹20 LPA | ₹19.25L | ₹2,57,400 | 12.87% | ₹3,27,600 | +₹70,200 |
| ₹25 LPA | ₹24.25L | ₹3,90,000 | 15.60% | ₹4,67,400 | +₹77,400 |
| ₹30 LPA | ₹29.25L | ₹5,57,400 | 18.58% | ₹6,39,000 | +₹81,600 |
| ₹40 LPA | ₹39.25L | ₹8,57,400 | 21.44% | ₹10,14,600 | +₹1,57,200 |
| ₹50 LPA | ₹49.25L | ₹11,57,400 | 23.15% | ₹13,89,000 | +₹2,31,600 |
*Old Regime: Standard deduction ₹50K + 80C ₹1.5L only. Including HRA, 80D, home loan changes these figures significantly. Includes 4% cess. Excludes surcharge.
How to Use PDFTeq's Income Tax Calculator
Select Financial Year & Personal Details
Choose FY 2025-26 (AY 2026-27) or FY 2026-27 (AY 2027-28). Select your age category — it affects Old Regime exemption limits (Below 60 / Senior 60–80 / Super Senior 80+).
Enter Income in the "Income" Tab
Enter your annual gross salary (before any deductions), rental income (gross), FD/savings interest, and any other income. Standard deduction is auto-applied.
Calculate HRA Exemption (if any)
Go to the "HRA" tab. Enter monthly basic, HRA received, rent paid, and city type. The exempt HRA is auto-calculated using the 3-limit formula and fed into your Old Regime calculation.
Enter Deductions in the "Deductions" Tab
Enter 80C investments, 80D health insurance premium, NPS contribution, home loan interest (24b), education loan interest (80E), donations (80G), and other deductions. These apply only to Old Regime calculation.
Click "Calculate Tax & Compare Regimes"
Instantly get: tax under both regimes, which saves more and by how much, slab-wise breakdown, surcharge, cess, effective tax rate, and take-home salary estimate. Download as a PDF report for your records.
Legal Tax Saving Strategies for FY 2025-26
Under Old Regime — Maximise These
- Section 80C (₹1.5L): ELSS mutual funds (best returns + shortest 3-yr lock-in), PPF (safe + tax-free maturity), EPF contribution, NSC, LIC premium, home loan principal, children's tuition
- NPS 80CCD(1B) (₹50K extra): Contribute to NPS Tier-I for an additional ₹50,000 deduction beyond the 80C limit — saves ₹15,600 at 30% slab + cess
- 80D Health Insurance (₹25K–₹1L): Buy health insurance for self/family and parents — saves ₹7,800–₹31,200 in tax + provides real coverage
- HRA (Unlimited within limits): If you pay rent, ensure HRA is structured in your salary and claim full exemption — can save ₹1.5L–₹3L+ in metro cities
- Home Loan Interest 24(b) (₹2L): Interest on self-occupied property — saves up to ₹62,400 at 30% slab
- 80E Education Loan: Interest on education loan — unlimited deduction for 8 years
Under New Regime — Strategies
- Maximise Employer NPS 80CCD(2): Ask HR to restructure CTC to include employer NPS contribution (10–14% of basic) — deductible in New Regime
- Food Coupons (₹2,200/month = ₹26,400/year tax-free): Include meal vouchers in CTC structure
- Voluntary PF over-contribution: While not a deduction in New Regime, the interest and maturity remain tax-free
- Tax-free allowances: Phone/internet reimbursement, leave travel allowance (LTA), uniform allowance — ensure these are structured in your offer letter
- LTCG planning: Long-term equity gains up to ₹1.25L per year are tax-free. Harvest gains below this threshold annually to reset cost basis
ITR Filing — Which Form, When & How
| ITR Form | Who Should File | Key Income Types | AY 2026-27 Deadline |
|---|---|---|---|
| ITR-1 (Sahaj) | Salaried, pensioners, one house property | Salary + Other + one HP | 31st July 2026 |
| ITR-2 | Capital gains, 2+ properties, foreign income | All ITR-1 + LTCG/STCG | 31st July 2026 |
| ITR-3 | Business or profession income (non-presumptive) | Business + salary + CG | 31st October 2026 (if audit) |
| ITR-4 (Sugam) | Presumptive income: 44AD, 44ADA (freelancers) | Freelance 44ADA + salary | 31st July 2026 |
Key ITR Filing Dates AY 2026-27
- 31st July 2026: Original ITR deadline for non-audit cases (ITR-1, 2, 4)
- 31st October 2026: Audit cases (ITR-3, ITR-5, 6) and companies
- 31st December 2026: Belated ITR (with penalty of ₹5,000 or ₹1,000 if income ≤ ₹5L)
- 31st March 2027: Updated ITR (ITR-U) with additional tax of 25–50%