What are the new income tax slabs for FY 2025-26?

Under the new regime (Budget 2026): 0% up to ₹4L, 5% from ₹4L-8L, 10% from ₹8L-12L, 15% from ₹12L-16L, 20% from ₹16L-20L, 25% from ₹20L-24L, and 30% above ₹24L. With the Section 87A rebate, there is effectively zero tax for income up to ₹12 lakh.

Should I choose new regime or old regime in FY 2025-26?

The new regime is generally better unless you have significant deductions. You would need deductions exceeding roughly ₹3.75L (for someone earning ₹15L) to make the old regime beneficial. Use this calculator to compare both for your specific income and deductions.

What is Section 87A rebate?

Section 87A provides a full tax rebate. Under the new regime, if your net taxable income is ₹12 lakh or less, you pay zero income tax. Under the old regime, the rebate applies if taxable income is ₹5 lakh or less.

What deductions can I claim under the old regime?

Under the old regime you can claim: Standard deduction ₹50,000, Section 80C up to ₹1,50,000 (PPF, ELSS, LIC, EPF), Section 80D health insurance up to ₹25,000 (₹50,000 for senior citizens), HRA exemption, Home loan interest under Section 24b up to ₹2,00,000, NPS under 80CCD(1B) up to ₹50,000, and more.

How is surcharge calculated on income tax in India?

Surcharge is levied on the income tax amount (not income): 10% for income ₹50L-1Cr, 15% for ₹1Cr-2Cr, 25% for ₹2Cr-5Cr. Above ₹5Cr: 25% under new regime, 37% under old regime. Then 4% Health & Education Cess is applied on (tax + surcharge).

What is the income tax exemption limit for senior citizens?

Under the old regime: Senior citizens (60-80 years) have a basic exemption of ₹3,00,000. Super senior citizens (80+ years) have an exemption of ₹5,00,000. Under the new regime, the same slabs apply for all ages but senior citizens still benefit from higher deductions under 80D.

All Tools

📊

Income Tax Calculator India FY 2025-26

Free to Use

Calculate income tax for FY 2025-26 (AY 2026-27). Compare new vs old tax regime. Includes capital gains, rental income, 87A rebate, surcharge, cess, advance tax schedule. Budget 2024 & 2025 rates.

Country

Tax Regime

New Regime (Budget 2025): Standard deduction ₹75,000 • 87A rebate up to ₹12L • No HRA/80C exemptions allowed

Age Group

Income Details

Annual Gross Salary (₹)

CTC / gross before deductions. Standard deduction applied automatically.

Rental Income (₹)

Added to total income and taxed at slab rates

FD / Savings Bank Interest (₹)

Taxed at slab rates. Use 80TTA/80TTB deduction (old regime) to offset.

Short-Term Capital Gains — STCG (₹)20% flat

Equity / MF held < 1 yr. Taxed @ 20% (Budget 2024, effective 23 Jul 2024). Old regime: taxed at 30% slab.

Long-Term Capital Gains — LTCG on Equity (₹)12.5% above ₹1.25L

Equity / equity MF held > 1 yr. First ₹1,25,000 exempt. Balance @ 12.5% (Budget 2024).

TDS Already Deducted (₹)by employer / bank

Deducted at source. Shows "Tax Still Payable" in results.

Deductions (Old Regime)

Old Regime only

Section 80C (₹)max ₹1,50,000

PPF, ELSS, LIC, EPF, NSC, etc.

Section 80D — Self & Family (₹)max ₹25,000

Health insurance premium for self, spouse, children

Section 80D — Parents (₹)max ₹25,000

Total 80D (self + parents) can be up to ₹1,00,000

HRA Exemption (₹)

Use Hand Salary Calculator to compute HRA exemption

Home Loan Interest — Section 24b (₹)max ₹2,00,000

NPS — Section 80CCD(1B) (₹)max ₹50,000

80TTA – Savings Bank Interest (₹)max ₹10,000

80TTA: deduction on savings account interest only (max ₹10K)

Other Deductions (₹)

80G donations, 80E education loan interest, etc.

✓ New Regime is better for you

Save ₹1,01,400/year by choosing the New Regime

Save ₹1,01,400

New Regime

Better

Total Income₹12,00,000

Standard Deduction−₹75,000

Taxable (Regular)₹11,25,000

Base Tax (slabs)₹0

Surcharge₹0

Cess (4%)₹0

Total Tax Payable₹0

Monthly TDS₹0

Effective Rate0.00%

87A rebate: zero slab tax (income ≤ ₹12L)

Old Regime

Total Income₹12,00,000

Total Deductions−₹2,75,000

Taxable (Regular)₹9,25,000

Base Tax (slabs)₹97,500

Surcharge₹0

Cess (4%)₹3,900

Total Tax Payable₹1,01,400

Monthly TDS₹8,450

Effective Rate8.45%

Income Breakdown — New Regime

Take-Home (Net Income)₹12,00,000 (100.0%)

Slab-wise Tax Breakdown — New Regime

Income Slab	Rate	Tax on Slab
₹0 – ₹4,00,000	0%	₹0
₹4,00,000 – ₹8,00,000	5%	₹20,000
₹8,00,000 – ₹12,00,000	10%	₹32,500
Base Tax Subtotal		₹0
+ Surcharge		₹0
+ Health & Education Cess (4%)		₹0
Total Tax Payable		₹0

FY 2025-26 Tax Slabs Reference

New Regime (Budget 2025)

₹0 – ₹4,00,000	0%
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

87A rebate: zero tax if taxable income ≤ ₹12L

Old Regime

₹0 – ₹2,50,000 (₹3L/₹5L for seniors)	0%
Up to ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Senior (60+): ₹3L exempt • Super senior (80+): ₹5L exempt
87A rebate: zero tax if taxable income ≤ ₹5L (below 60 only)

Capital Gains (all regimes)

STCG equity/MF (held < 1yr)20%

LTCG equity/MF (held > 1yr)12.5% (above ₹1.25L)

Budget 2024 rates effective 23 Jul 2024

Frequently Asked Questions

Is this income tax calculator free to use?›

Yes, completely free. No sign-up, no download, and no hidden charges. You can calculate your income tax for FY 2025-26 as many times as you need.

Which country's tax rules does this calculator follow?›

This calculator is built for India (FY 2025-26 / AY 2026-27). It uses the latest Union Budget 2025 slabs for both the New Regime (87A rebate up to ₹12L, standard deduction ₹75,000) and the Old Regime (standard deduction ₹50,000, HRA, 80C, 80D, NPS etc.).

How do I use the income tax calculator?›

Enter your annual gross salary, select your age group and preferred tax regime. Optionally add other income sources like rental income, FD interest, or capital gains. For the Old Regime, fill in your deductions (80C, 80D, HRA exemption, home loan interest, NPS). The calculator instantly shows your total tax, slab-wise breakdown, effective tax rate, and which regime saves you more money.

What does this calculator compute?›

It calculates total income tax payable (base slab tax + surcharge + 4% cess), compares New vs Old tax regime side by side, computes STCG (20%) and LTCG (12.5% above ₹1.25L) tax separately, shows advance tax schedule (Jun/Sep/Dec/Mar instalments), displays monthly TDS estimate, and highlights the 87A rebate if applicable.

How accurate are the results? Should I use them for filing?›

The calculator uses official FY 2025-26 tax slabs and Budget 2025 rules and is very accurate for standard salary income. However, it is for estimation purposes only. For complex situations (multiple employers, foreign income, business income, property transactions) or for actual ITR filing, please consult a Chartered Accountant.

What Is Income Tax Calculator India?

The Formly income tax calculator for India computes your tax liability for FY 2025-26 under both the New Tax Regime and Old Tax Regime, letting you compare which is better for your situation. Enter your gross salary, allowances (HRA, LTA, food coupons), investments under 80C (PPF, ELSS, LIC), 80D (health insurance), home loan interest (24B), and NPS (80CCD), and the calculator instantly shows your taxable income, total tax, and net take-home under each regime. Updated for Budget 2025 changes including the revised new regime slabs and the ₹75,000 standard deduction.

Why Formly's Income Tax Calculator India Is the Best Free Option

✓Both regimes calculated simultaneously — instantly see which regime saves you more tax.
✓Budget 2025 updated — revised new regime slabs, ₹75,000 standard deduction, and rebate u/s 87A.
✓All major deductions supported: 80C, 80D, 80CCD(1B), HRA exemption, 24(b) home loan interest.
✓Monthly and annual breakdowns — see monthly TDS impact on your take-home pay.
✓Free and instant — no signup, no data collection, all calculations happen in your browser.
✓Surcharge and cess calculated correctly — including 4% Health & Education Cess.

Free Alternative to ClearTax tax calculator, ET Money tax calculator, Groww tax calculator, HR Block India

→ClearTax tax calculator: ClearTax requires signup and pushes you to their filing services. Formly is anonymous and instant.

→ET Money tax calculator: ET Money's calculator is limited in deduction options. Formly covers all major sections.

→Groww tax calculator: Groww's calculator focuses on investments. Formly covers full salary tax computation.

→HR Block India: Requires account creation. Formly is instant with no signup.

Who Uses Income Tax Calculator India?

Salaried employees

Decide between old and new tax regime at the start of FY to optimize TDS and take-home pay.

HR & payroll teams

Compute employee TDS for the year and verify Form 16 calculations.

Chartered accountants

Quickly calculate client tax liability under both regimes during ITR planning.

Freshers joining first jobs

Understand how much tax will be deducted from their salary and which investments to make.

Self-employed professionals

Estimate advance tax liability under both regimes before quarterly payment deadlines.

Popular searches: income tax calculator India 2025-26, new vs old tax regime calculator, salary tax calculator India, TDS calculator India, income tax calculation FY 2025-26, ClearTax alternative free.

Looking for a detailed guide? Read our in-depth tutorial on using Income Tax Calculator India for professional results.

Read Guide →

Free & unlimited — no account needed. Sign up to save history · Go Pro for advanced features