One For All finance calculatorIndividuals have the option to file taxes under either the old or new tax regimes, with each offering different regulations and deductions. To accurately calculate your tax liabilities, you can use our income tax calculator, which is a cost-effective alternative to hiring a professional tax consultant. This tool not only helps you understand your tax obligations but also simplifies the process of comparing both regimes.
Explore how the tax calculator works, their benefits, and how they can streamline your tax planning for smarter financial decisions.
| Income Tax Slabs | Tax Rate |
|---|---|
| Upto Rs. 4,00,000 | NIL |
| Rs. 4,00,001 - Rs. 8,00,000 | 5% |
| Rs. 8,00,001 - Rs. 12,00,000 | 10% |
| Rs. 12,00,001 - Rs. 16,00,000 | 15% |
| Rs. 16,00,001 - Rs. 20,00,000 | 20% |
| Rs. 20,00,001 - Rs. 24,00,000 | 25% |
| Above Rs. 24,00,000 | 30% |
The Income tax calculator is an easy-to-use online tool that helps you calculate your tax liability based on your income details. It also gives you a comparison of tax liability between the old and new tax regimes to help you decide which is more beneficial for you. We have updated our tool in line with the income tax changes proposed in the Union Budget 2025 to help you estimate your tax liability for better financial planning.
To calculate Income tax, include income from all sources. Include:
Income tax calculation for the Salaried
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 in both old and Rs.75,000 new regime respectively.
Let's understand income tax calculation under both old and new tax regimes by way of an example:
| 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 Rs 8,000 and a fixed deposit interest income of Rs 12,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 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 | Rs.1,50,000 | PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer (Neha’s contribution) = Rs 1,00,000 *12% *12 = 1,44,000 | Rs 1,50,000 |
| Section 80D | Rs 25,000 for self Rs 50,000 for parents |
Medical insurance premium Rs 12,000 | Rs 12,000 |
| Section 80TTA | Rs.10,000 | Savings account interest 8,000 | Rs. 8,000 |
Calculation of gross taxable income and tax liability in India (Old regime):
| Nature | Amount | Total |
|---|---|---|
| Income from Salary | 16,50,000 | |
| Less: Std Deduction | 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 | |
| Less: Std Deduction | 75,000 | |
| Income from Other Sources | 20,000 | |
| Gross Total Income | 19,42,000 | |
| Total tax on above (including cess) | 2,83,504 |
Mr A has a salary income of Rs. 10,75,000 for FY 2025-2026. Income from other sources is Rs. 2,00,000. The income tax calculation for Mr A for the FY 2025-2026 under new regime is as follows:
| Particulars | Amount |
|---|---|
| Salary | 10,75,000 |
| Less - Standard deduction | (75,000) |
| 10,00,000 | |
| Income from Other Sources | 2,00,000 |
| Gross total Income | 12,00,000 |
| Income tax: | 60,000 |
| Less - Rebate : | (60,000) |
| Tax Payable | 0 |
Note:
It is to be noted that marginal relief on rebate is still available for the slab rates proposed on budget 2025. Please refer to article for better understanding.
Also, this rebate of Rs. 60,000 is not applicable for income taxed under special rates.
The slab rates are different under the new and old regimes. Under the old regime, the rates vary based on age: individuals under 60, those between 60 and 80, and those over 80. Under the new regime, the tax slabs are the same for all age groups.
The tax slabs under the old regime are as follows:
| Slabs (Rs.) | Individuals (Age < 60 years) | Resident Senior Citizens (>60 but <80 years) | Resident Super Senior Citizens (80 years and above) |
|---|---|---|---|
| Upto 2,50,000 | Nil | Nil | Nil |
| 2,50,001 - 3,00,000 | 5% | Nil | Nil |
| 3,00,001 - 5,00,000 | 5% | 5% | Nil |
| 5,00,000 - 10,00,000 | 20% | 20% | 20% |
| Above 10,00,000 | 30% | 30% | 30% |
The tax slabs under the new regime is as follows:
| Tax Slab for FY 2024-25 | Tax Rate |
|---|---|
| Upto 3,00,000 | Nil |
| 3,00,001 - 7,00,000 | 5% |
| 7,00,001 - 10,00,000 | 10% |
| 10,00,001 - 12,00,000 | 15% |
| 12,00,001 - 15,00,000 | 20% |
| Above 15,00,000 | 30% |
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:
Note: The highest surcharge rate of 37% has been reduced to 25% under the new tax regime.
Additional Health and Education cess at the rate of 4% will be added to the income tax liability.
Note: There are certain deductions/exemptions which are not available under the New regime. Click here to know about the exemptions/deductions that are not available under the New regime.
Using our online Income tax calculator offers several benefits such as: