India Income Tax Calculator
Enter your annual income, pick a regime and see your Indian income tax slab by slab, including the standard deduction, section 87A rebate, surcharge and 4% cess for FY 2025-26.
Switch the regime to compare the new and old structures on the same income before you declare.
Used only under the old regime. The new regime allows no such deductions.
Income tax for FY 2025-26
- Annual gross income
- ₹12,00,000.00
- Standard deduction
- ₹75,000.00
- Taxable income
- ₹11,25,000.00
- ₹0 – ₹4,00,000 at 0%
- ₹0.00
- ₹4,00,000 – ₹8,00,000 at 5%
- ₹20,000.00
- ₹8,00,000 – ₹12,00,000 at 10%
- ₹32,500.00
- Tax before rebate
- ₹52,500.00
- Rebate u/s 87A
- ₹52,500.00
- Health & education cess (4%)
- ₹0.00
- Total tax payable
- ₹0.00
- Average monthly TDS
- ₹0.00
- Income after tax
- ₹12,00,000.00
- Effective tax rate
- 0%
Your effective tax rate works out to 0% of gross income, that's about ₹0.00 withheld each month if this is salary income taxed under Section 192.
Smart next steps
Formula
Taxable income = Gross income − Standard deduction − Eligible deductions
Slab tax = Sum of (Income in each slab × Slab rate)
Total tax = (Slab tax − 87A rebate) + Surcharge + 4% cess
New regime slabs: nil up to ₹4,00,000, then 5% to ₹8,00,000, 10% to ₹12,00,000, 15% to ₹16,00,000, 20% to ₹20,00,000, 25% to ₹24,00,000 and 30% above that. The standard deduction is ₹75,000 for salary and pension income.
Old regime slabs: nil up to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above, with a ₹50,000 standard deduction and deductions such as 80C, 80D and HRA.
Worked example
A salaried person earning ₹15,00,000 under the new regime deducts ₹75,000 to reach ₹14,25,000 taxable income. The slabs give ₹20,000 at 5%, ₹40,000 at 10% and ₹33,750 at 15%: ₹93,750 of tax, plus 4% cess, for a total of about ₹97,500, or roughly ₹8,125 of TDS a month.
The same ₹15,00,000 under the old regime, with only the ₹50,000 standard deduction and no other 80C, 80D or HRA claims, reaches ₹14,50,000 taxable income. The slabs give ₹12,500 at 5% and ₹1,00,000 at 20%, then ₹1,35,000 at 30% on the balance above ₹10,00,000: ₹2,47,500 of tax, plus 4% cess, for a total of about ₹2,57,400. Without those deductions the old regime costs roughly ₹1,60,000 more on this income; claiming a full 80C, HRA and home loan interest would close or reverse that gap, which is why comparing both regimes on your actual deductions matters more than the headline slab rates.
How to use this calculator
- 1Enter your annual salary or business income, then pick new or old regime to see the tax slab by slab.
- 2Add 80C, 80D, HRA and home loan interest if you want the old regime figure: the new regime ignores these fields since it does not allow them.
- 3Read the tax after the section 87A rebate, surcharge and 4% cess, plus the equivalent monthly TDS.
- 4Switch the regime on the same income and compare both totals before you declare your choice to your employer.
When businesses use it
- Deciding which regime to declare to your employer at the start of the financial year, or after switching jobs mid-year.
- Checking a freelance or business income for advance tax before a quarterly payment is due.
- Confirming marginal relief brings your tax down when income sits just above ₹12,00,000 under the new regime.
How income tax is actually computed in India
Income tax in India is a slab tax, not a flat rate. Only the portion of income that falls inside a slab is taxed at that slab's rate, so a salary of ₹15 lakh is never taxed at 30% end to end. That is why the effective rate this calculator shows is always well below the highest slab you touch.
Two regimes now run side by side. The new regime, which is the default from FY 2023-24 onwards, offers wider slabs and lower rates but removes almost every deduction: no 80C, no 80D, no HRA exemption. The old regime keeps the narrower ₹2.5 lakh, ₹5 lakh and ₹10 lakh slabs with 5%, 20% and 30% rates, but lets you subtract provident fund and insurance premiums under 80C, health insurance under 80D, HRA exemption and home loan interest.
After the slab tax comes the section 87A rebate, which wipes out tax entirely for smaller incomes: up to ₹60,000 of rebate when taxable income is ₹12,00,000 or less under the new regime, and ₹12,500 when it is ₹5,00,000 or less under the old one. Surcharge applies above ₹50 lakh, and health and education cess at 4% is added on top of everything at the end.
For salaried employees this tax is not paid in one go: the employer divides the annual liability across twelve months as TDS based on the declaration you file in April. Declaring investments late means heavy deduction in the early months and waiting for a refund after filing.
Mistakes to avoid when estimating your tax
- Comparing regimes on slab rates alone instead of on the final tax after deductions and rebate.
- Claiming 80C or HRA under the new regime, where they are not allowed.
- Forgetting the 4% cess, which quietly adds to every rupee of tax.
- Assuming the ₹12 lakh threshold applies to gross salary rather than taxable income after the standard deduction.
- Declaring investments in January instead of April, which front-loads your TDS.
New vs old tax regime, side by side
The two regimes tax the same income differently: the new regime uses wider slabs and lower rates but disallows most deductions, while the old regime keeps higher rates and lets you claim 80C, 80D, HRA and home loan interest.
| Item | New regime | Old regime |
|---|---|---|
| Nil slab up to | ₹4,00,000 | ₹2,50,000 |
| Standard deduction | ₹75,000 | ₹50,000 |
| 87A rebate up to | ₹60,000 (income ≤ ₹12,00,000) | ₹12,500 (income ≤ ₹5,00,000) |
| 80C, 80D, HRA | Not allowed | Allowed |
| Top rate | 30% above ₹24,00,000 | 30% above ₹10,00,000 |
As a rule of thumb, if your total deductions and exemptions come to less than about ₹4–4.5 lakh, the new regime leaves more in hand. Above that, the old regime often still wins. Run your own numbers in both regimes above rather than relying on the rule. See new vs old tax regime explained for the full breakdown and a worked example.
Assumptions and limitations
- Built for resident individuals on FY 2025-26 (AY 2026-27) slabs.
- Covers salary and other slab-rate income only: capital gains and other special-rate income are taxed separately and are not included here.
- Health and education cess at 4% is always added on top of the tax after any rebate.
- Surcharge is applied above ₹50 lakh, ₹1 crore or ₹2 crore in the new regime, and above ₹5 crore in the old regime.
- This is a close estimate, not a filed return: confirm your final figure with a tax adviser, especially if you have capital gains or income taxed at a special rate.
- Freelancer or professional income taxed on a presumptive basis isn't a slab-rate salary figure by default: work out your taxable income first with Section 44ADA presumptive taxation explained, then enter that figure here.
- These slabs apply to individuals. If you run the business through an LLP or a private limited company instead, profit is taxed differently (a flat 30% for an LLP, or 22%/25%/30% for a company), see sole proprietorship vs LLP vs private limited company for how that comparison works.
- If this estimate shows tax of ₹10,000 or more for the year, you may owe it in instalments during the year rather than all at once when you file: see advance tax due dates and how much to pay.
Once you know the annual tax, check what actually reaches your bank account with the salary calculator or break a CTC letter down with the CTC calculator.
Sources & references
The rules behind this calculator, from the official source. Rates and thresholds change — confirm the current figure on the source itself before relying on it for a filing.
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