Calculate Indian Income Tax

Income tax calculator for India

Use this income tax calculator to estimate your liability for Financial Year (FY) 2025-26, which is assessed in Assessment Year (AY) 2026-27. You may have your Form 16 open while your Annual Information Statement (AIS) shows bank interest that was not included in your employer’s calculation.

Enter income from every source, compare both tax regimes, and check whether any amount remains payable after Tax Deducted at Source (TDS).

The income tax calculator India comparison is designed for an individual with ordinary slab-rate income. It provides an estimate, not a filing determination.

Capital gains, lottery winnings, virtual digital assets, unexplained income and certain other amounts can attract special rates that require a separate calculation.

Step 1: Choose the calculation period

Financial Year: FY 2025-26

Assessment Year: AY 2026-27

Taxpayer type: Individual

Age on 31 March 2026: Under 60 / 60 to 79 / 80 or older

Residential status: Resident / Non-resident

FY 2025-26 is the year in which the income is earned. AY 2026-27 is the year in which that income is assessed and the Income Tax Return (ITR) is normally filed.

Selecting a different year can change the slabs, rebate, claim limits and tax-regime comparison.

Step 2: Enter income

Enter gross salary before the standard deduction. For the old tax regime, enter only an exemption that you can support, such as an eligible House Rent Allowance (HRA) exemption or Leave Travel Allowance exemption.

Do not subtract Employee Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) or National Pension System (NPS) contributions from pay. Enter eligible deductions in the next calculator step.

Bank interest is income even when the bank did not deduct TDS. Match savings-account interest, fixed-deposit interest and bond income against the AIS, Form 26AS and relevant financial statements.

TDS is a credit against liability. It does not make the underlying income exempt.

For house property, enter the amount computed under that income head, not the rent received before adjustments. Home-loan interest treatment differs between a self-occupied and let-out house.

The selected tax regime can also restrict a loss or claim. Verify a complex house-property calculation in the applicable ITR utility.

Step 3: Enter old-regime deductions

Use verified deductions rather than planned investments. Section 80C can include qualifying EPF, PPF, ELSS, life-insurance premiums, tuition fees and eligible housing-loan principal.

These items share a combined limit of ₹1,50,000 for FY 2025-26. An investment does not create a deduction merely because it has a financial purpose.

The additional NPS deduction under Section 80CCD(1B) has a separate limit of ₹50,000 for FY 2025-26 when its conditions are satisfied. Employer NPS contributions require separate treatment and can remain relevant in the new regime within the applicable statutory conditions and limits.

Do not enter the same NPS contribution in two fields.

Step 4: Enter amounts already paid

Enter credits only after matching them with Form 16, TDS certificates, Form 26AS and the AIS. A payslip can show employment TDS.

Form 26AS is the practical record for checking whether the deductor reported the amount against your Permanent Account Number (PAN).

Step 5: Compare the estimated result

The lower estimate is not automatically the correct filing choice. The comparison depends on whether each income amount, HRA exemption, house-property figure and deduction is available under that regime and supported by records.

Business or professional income can also affect how and when the taxpayer may switch regimes.

Remember: compare both tax regimes using the same complete income and only the deductions or exemptions you can substantiate.

The next step is to understand what each calculator output means before relying on the estimate.

What does the calculator result mean?

The calculator result shows estimated taxable income, slab liability, rebate, cess and the balance after available credits. It does not show a confirmed refund merely because TDS exceeds the estimated liability.

A refund becomes part of the filing outcome after the return is submitted and processed by the Income Tax Department.

Gross total income

Gross total income combines amounts computed under the applicable income heads before Chapter VI-A deductions. These heads cover salary, house property, profits and gains from business or profession, capital gains, and other sources such as interest or dividends.

A compensation package or cost-to-company figure is not always the same as taxable salary. Employer contributions, reimbursements, perquisites and exemptions require separate treatment.

Use the taxable employment schedule in Form 16 as a starting point. Then reconcile it with your payslips and any information missing from the employer’s calculation.

Taxable income

Taxable income is the amount remaining after the exemptions and deductions permitted under the selected tax regime. The calculator rounds this amount where the applicable computation rules require it.

The resulting figure is divided across slabs; the highest rate does not apply to the entire income.

Example

Suppose taxable income under the new regime is ₹13 lakh for FY 2025-26. The first ₹4 lakh falls within the nil slab.

The next ₹4 lakh is taxed at 5%, the following ₹4 lakh at 10%, and only the final ₹1 lakh at 15%. This progressive structure is why multiplying the entire income by the highest applicable rate produces the wrong estimate.

Remember: each slab rate applies only to the part of taxable income within that slab.

Check the taxable-income line and slab calculation in the Income Tax Department’s calculator or the applicable ITR utility.

Liability before and after rebate

The amount before rebate is calculated using the applicable slabs and any special rates. A rebate reduces the calculated tax liability.

It is different from a deduction, which reduces taxable income, and an exemption, which keeps an eligible receipt or allowance outside taxable income.

For AY 2026-27, a resident individual using the new tax regime can receive a Section 87A rebate of up to ₹60,000 when total income does not exceed ₹12 lakh, subject to the statutory conditions. The rebate does not convert the first ₹12 lakh into a nil-rate slab.

It offsets eligible tax liability after the slab calculation.

Salary income of up to ₹12,75,000 can result in no tax liability under the new regime where the ₹75,000 standard deduction applies and no special-rate income changes the result. The ₹12.75 lakh figure is therefore a salary-specific consequence of the standard deduction, not the general rebate threshold.

Under the old tax regime, an eligible resident individual with total income of up to ₹5 lakh can receive a Section 87A rebate of up to ₹12,500 for AY 2026-27. Age-based slab limits do not change the ₹5 lakh rebate threshold.

Special-rate income can change the availability or practical effect of the rebate. Do not assume that total income below ₹12 lakh produces no liability when it includes taxable capital gains, lottery income or another amount subject to a special rate.

Remember: a rebate reduces eligible tax liability after taxable income has been calculated; it is not a deduction or exemption.

Verify rebate eligibility against the relevant schedule in the applicable ITR utility or the guidance issued by the Income Tax Department.

Cess and surcharge

Health and Education Cess is added at 4% of income tax plus surcharge for FY 2025-26 after applying any eligible rebate. The calculator should show this component separately so that you can check the estimate.

Surcharge applies when total income crosses specified high-income thresholds. Its rate and marginal-relief calculation depend on the selected regime and the composition of income.

A basic calculator may not fully reproduce surcharge, marginal relief or special-rate interactions. High-income estimates therefore require verification in the applicable ITR utility.

Amount payable, excess paid and refund

An estimated amount payable means the calculated liability is higher than the TDS, TCS, advance tax and self-assessment tax entered. Interest can also apply when advance-tax or return-filing obligations were not met.

The amount due in the ITR utility can therefore be higher than a basic calculator estimate.

An estimated excess payment means the entered credits exceed the calculated liability. It is not an approved refund.

First check that each credit belongs to you, appears in Form 26AS and has not been entered twice. The Income Tax Department determines the refund when it processes the filed return.

The estimate can be grouped into three practical ranges: a nil or small balance that calls for reconciliation, a medium balance that may require a planned payment, or a large balance that warrants checking omitted income, advance-tax interest and special rates before filing. These are practical decision ranges, not statutory bands.

Remember: excess tax paid is an estimate until the Income Tax Department processes the return and determines the refund.

Match the credits with Form 26AS and the AIS before entering them in the applicable ITR utility.

Effective and marginal rates

The effective tax rate is the total estimated liability divided by the relevant income base. The marginal tax rate is the rate that applies to the next rupee within a slab, subject to cess, surcharge and special provisions.

These rates answer different financial questions.

A taxpayer in a 20% slab does not pay 20% on the entire income. The lower portions remain taxed at their applicable lower slab rates.

Read the calculator result line by line and check how each component was calculated.

How is income tax calculated under each regime?

Income tax is calculated by reducing the permitted amounts from income, applying the selected regime’s slabs, subtracting an eligible rebate, and adding cess and surcharge. The calculator follows this sequence separately for each regime because the available exemptions, deductions and slabs differ.

New tax regime slabs for FY 2025-26

The new tax regime under Section 115BAC is the default regime for AY 2026-27. Its slab structure for ordinary income is:

The new tax regime permits a standard deduction of ₹75,000 from salary and eligible pension income for FY 2025-26. It generally does not allow common claims such as the HRA exemption, Leave Travel Allowance exemption, the individual’s Section 80C deduction and many other Chapter VI-A deductions.

This regime can produce a lower estimate when eligible exemptions and deductions are limited. The result depends on the taxpayer’s figures.

An employee with substantial eligible HRA, Section 80C, health-insurance and home-loan deductions can receive a different comparison.

Old tax regime slabs for an individual under 60

For an individual under 60, the ordinary slabs under the old tax regime for FY 2025-26 and AY 2026-27 are:

The old tax regime permits a standard deduction of ₹50,000 from salary and eligible pension income for FY 2025-26. It can also permit the HRA exemption, Leave Travel Allowance exemption, house-property treatment and Chapter VI-A deductions when their individual conditions are met.

Resident senior citizens aged 60 to 79 have a basic exemption limit of ₹3 lakh under this regime for AY 2026-27. Resident super senior citizens aged 80 or older have a basic exemption limit of ₹5 lakh.

The ₹4 lakh nil slab under the new tax regime does not change by age for AY 2026-27.

Core formula

For each tax regime, the calculator applies this broad formula:

Gross total income − permitted exemptions − permitted deductions = total taxable income

Slab-rate liability + special-rate liability = income tax before rebate

Income tax − eligible rebate + surcharge + 4% cess = total liability

Total liability − TDS − TCS − advance tax − self-assessment tax = balance

A deduction reduces income before the rates are applied. An exemption removes an eligible receipt or allowance from the taxable computation.

The rebate is applied after the slab calculation. A TDS credit reduces the unpaid balance.

A refund is the amount the Income Tax Department determines as repayable after processing the return.

Remember: deductions and exemptions change taxable income, a rebate changes calculated tax, and credits change the balance payable.

Check each item against its separate field or schedule in the applicable ITR utility.

HRA and employment exemptions

House Rent Allowance is not automatically exempt under the old tax regime. The exempt HRA amount is generally the lowest of eligible HRA received, rent paid minus 10% of salary for the HRA formula, and 50% of that salary for specified metropolitan cities or 40% elsewhere.

The relevant salary definition and supporting conditions affect the result.

The new tax regime generally does not allow the HRA exemption. In an illustrative case where gross salary is ₹15 lakh and the eligible HRA exemption is ₹2 lakh, the two regime calculations begin with different employment income.

The old regime then applies its ₹50,000 standard deduction and any other permitted deductions. The new regime applies its ₹75,000 standard deduction for FY 2025-26.

Remember: rent paid is an input to the HRA formula, not the amount of the exemption.

Check the HRA working against Form 16, payslips, rent receipts and the applicable ITR salary schedule.

Common old-regime deductions

Section 80C provides a combined deduction limit of ₹1,50,000 for eligible payments and investments for FY 2025-26. EPF, PPF, ELSS, qualifying life-insurance premiums, eligible tuition fees and qualifying housing-loan principal can fall within this section, subject to their conditions.

Section 80D can allow health-insurance deductions. The limit depends on who is insured, age, payment type and the statutory conditions.

Section 80E applies to eligible interest on a higher-education loan. Section 80TTA or Section 80TTB can apply to specified deposit interest, depending on the taxpayer category and type of account.

The NPS can involve deductions under Section 80CCD. The employee’s or individual’s contribution, the additional deduction under Section 80CCD(1B), and the employer contribution under Section 80CCD(2) must be classified separately.

Their limits and availability can differ between the two tax regimes.

Special-rate income

Capital gains do not always use ordinary income tax slabs. The treatment depends on the asset, transaction date, holding period and statutory provision.

Lottery winnings, certain virtual digital asset income and other specified amounts also require special-rate treatment.

A calculator limited to ordinary slab income can understate or overstate liability if special-rate amounts are entered as salary or deposit income. Use the relevant capital-gains or special-income schedule in the applicable ITR utility.

Verify the rate under the law that applies to the transaction date.

Remember: classify special-rate income separately before relying on a slab-based estimate.

Check the transaction date, asset type and holding period against the relevant ITR schedule and guidance from the Income Tax Department.

Data sources, update date and assumptions

This methodology was updated on 10 August 2026 for FY 2025-26 and AY 2026-27. The principal sources are the Income Tax Department’s salaried-individual guidance for AY 2026-27, its income tax calculator, and its calculator user manual.

The estimate assumes that the taxpayer has correctly classified income, eligibility, age, residential status, exemptions, deductions and credits. It also assumes ordinary slab treatment unless a special-rate amount is identified.

Figures should be rounded only at the stages required by the applicable rules.

Calculator limitations

The income tax calculator does not replace the return schedules for capital gains, foreign income, foreign assets, business depreciation, loss set-off, clubbing, agricultural-income rate integration, Alternate Minimum Tax or treaty relief. It also does not determine whether you must file an ITR or which ITR form applies.

Interest under Sections 234A, 234B and 234C depends on filing dates, advance-tax payments and the liability outstanding at prescribed points. A basic calculator cannot estimate these charges accurately without the relevant dates and payment history.

The calculator does not choose a tax regime for you. Taxpayers with business or professional income should verify the option procedure and switching restrictions before acting.

The Income Tax Department’s calculator and the applicable ITR utility provide the next methodology check.

Worked example: ₹15 lakh salary with interest

Example

This example calculates the liability on a salary of ₹15 lakh and bank interest of ₹50,000 under both tax regimes for FY 2025-26. It assumes a resident individual aged 35, no special-rate income, no surcharge, and valid old-regime deductions supported by records.

Example inputs

These inputs assume that the ₹15 lakh salary includes taxable allowances before the HRA exemption and standard deduction. The bank interest appears in the AIS and is added as income from other sources.

New-regime calculation

The new tax regime does not allow the assumed HRA exemption, Section 80C deduction, Section 80D deduction or individual NPS deduction in this example. It allows the ₹75,000 standard deduction from salary for FY 2025-26.

The slab calculation is:

• Tax on the first ₹4,00,000: ₹0
• Tax on the next ₹4,00,000 at 5%: ₹20,000
• Tax on the next ₹4,00,000 at 10%: ₹40,000
• Tax on the remaining ₹2,75,000 at 15%: ₹41,250

Income tax before cess is ₹1,01,250. The Section 87A rebate is not available because total income exceeds ₹12 lakh.

Health and Education Cess at 4% is ₹4,050, producing an estimated total liability of ₹1,05,300.

Old-regime calculation

The old tax regime allows the assumed HRA exemption, ₹50,000 standard deduction and verified Chapter VI-A deductions in this example.

The slab calculation is:

• Tax on the first ₹2,50,000: ₹0
• Tax on the next ₹2,50,000 at 5%: ₹12,500
• Tax on the next ₹5,00,000 at 20%: ₹1,00,000
• Tax on the remaining ₹75,000 at 30%: ₹22,500

Income tax before cess is ₹1,35,000. No Section 87A rebate applies because total income exceeds ₹5 lakh.

Health and Education Cess at 4% is ₹5,400, producing an estimated total liability of ₹1,40,400.

Comparison and interpretation

The new tax regime estimate is lower by ₹35,100 under these exact assumptions. The old regime produces lower taxable income, but its slab structure results in higher liability in this example.

The conclusion changes if the employment income, HRA exemption, house-property treatment or deductions change.

For contrast, removing the ₹2 lakh HRA exemption would raise taxable income under the old regime to ₹12,75,000 and increase its estimated liability. A higher deduction cannot be assumed unless the payment is eligible and documented.

A planned investment made after the end of FY 2025-26 does not retrospectively create a deduction for that year.

The balance after TDS is calculated separately. If Form 16 and Form 26AS show total TDS of ₹90,000, the estimated balance under the new regime before filing-related interest would be ₹15,300.

If the verified credits were ₹1,20,000, the calculator would show an estimated excess payment of ₹14,700. Any refund remains subject to reconciliation and processing by the Income Tax Department.

Remember: the lower-tax regime in this example follows from the stated income and deductions; it is not a rule for every ₹15 lakh salary.

The final decision requires an accuracy, privacy and next-action check.

Income tax calculator FAQs

The following answers help you verify the calculator estimate and decide what to do next. Each answer applies to FY 2025-26 and AY 2026-27 unless another period is stated.

Is this income tax calculator accurate?

The income tax calculator can provide a useful estimate when the entered income, regime, age, residential status, deductions and credits are correct. Accuracy falls when the return includes special-rate income, loss adjustments, surcharge, marginal relief, foreign income, agricultural income or filing-related interest.

A salary-only case usually requires fewer calculations because it involves fewer income heads and schedules. A case involving salary, house property and deposit interest requires additional reconciliation.

A case involving business income, capital gains or foreign assets requires further schedules and may require professional judgment.

Which tax regime should I choose?

Compare both tax regimes using the same complete income and only verified deductions, exemptions and other claims. The new regime can produce the lower estimate when available deductions and exemptions are limited.

The old regime can become more competitive when eligible HRA, house-property treatment and other deductions materially reduce taxable income.

A salaried taxpayer without business income can generally compare the regimes while filing, subject to the applicable return rules. A taxpayer with business or professional income should check the prescribed option procedure and switching restrictions before choosing.

Is the new tax regime the default?

Yes. The new tax regime under Section 115BAC is the default for eligible taxpayers for AY 2026-27.

Choosing the old tax regime requires compliance with the applicable option and filing conditions.

A declaration submitted to an employer controls the employer’s payroll TDS calculation. It does not always determine the final tax regime used in the ITR.

Recalculate the total liability after adding deposit interest and other income that the employer did not include.

Can I claim HRA in the new tax regime?

The usual HRA exemption is not available under the new tax regime. An eligible HRA exemption can be considered under the old tax regime after applying the statutory formula and satisfying the documentation conditions.

Rent paid is not itself the HRA exemption. Salary for the formula, HRA received, rent paid, location and occupancy facts determine the eligible amount.

Are Section 80C deductions allowed under the new tax regime?

The individual’s common Section 80C deductions are generally unavailable under the new tax regime. This includes otherwise eligible PPF, ELSS, EPF, insurance-premium and tuition-fee deductions.

These financial products can still serve savings, insurance or investment purposes. Their financial purpose is separate from whether the deduction is available under a particular tax regime.

Does the calculator include bank interest?

Yes. Bank interest should be included as income unless a specific provision excludes it.

Enter savings-account, fixed-deposit and recurring-deposit interest according to the relevant financial records.

A bank may deduct TDS only when the prescribed conditions are met. The interest can remain taxable when TDS is zero.

Check the AIS, Form 26AS and bank certificates rather than relying only on the amount credited to your account.

Why does Form 16 differ from the calculator?

Form 16 can differ because an employer calculates TDS using the information available to it. The calculator may include bank income, income from a second job, rent, dividends or deductions that were not provided to the employer.

Reconcile the difference in three parts: employment income and exemptions, income outside employment, and tax credits. Then compare the result with the pre-filled ITR data on the Income Tax Department portal.

Does zero tax mean I do not need to file an ITR?

No. A nil estimated liability does not by itself determine whether an ITR is required.

Filing obligations depend on total income and other statutory conditions, including specified transactions and circumstances.

Use the Income Tax Department’s return applicability guidance to check the filing obligation and applicable form. Tax liability and filing requirements are separate determinations.

Is TDS the same as final income tax?

No. TDS is tax collected in advance and credited against the final liability.

The final calculation includes total income, the selected tax regime, available deductions and exemptions, rebate, cess and other applicable provisions.

If TDS is lower than the final liability, you must pay the balance and any applicable interest. If TDS is higher, you can claim the excess in the return, subject to credit verification and processing by the Income Tax Department.

Does this calculator store personal or financial data?

Do not enter a PAN, bank account number, password, Aadhaar number or document upload into a calculator unless its privacy notice expressly requires that information and explains how it is handled. A basic income estimate needs amounts and relevant taxpayer attributes, not account credentials.

Keep detailed documents such as Form 16, the AIS and broker statements locally while entering only the required totals. Use the Income Tax Department portal directly for filing and account-specific actions.

What should I do after calculating tax?

First, match employment income with Form 16 and other income with the AIS, Form 26AS and bank certificates. Second, verify each exemption and deduction against its conditions and supporting evidence.

Third, compare both tax regimes using the Income Tax Department’s calculator or the applicable ITR utility.

Then review TDS, TCS, advance tax and self-assessment tax. If a balance remains, check whether statutory interest applies before paying it.

If an excess payment appears, confirm that each credit is reported against your PAN before claiming a refund.

India Tax is an independent tax reference and is not a government website. This income tax calculator content provides an estimate and general information, not personalised tax, legal, accounting or investment advice.

Use the calculator to compare the regimes, then use your documents and the Income Tax Department’s official tools to make the filing decision.

Before relying on the estimate, match each input to the current-year document that supports it.