Introduction
Income tax in India is calculated based on tax slabs that determine the rate applied to different income ranges. From FY 2024-25, the new tax regime is the default option with lower rates but no deductions, while the old regime allows Section 80C, HRA, and other exemptions.
Numverto Income Tax Calculator computes tax under both regimes with slab-wise breakdown, 4% cess, and monthly TDS estimate. Read our income tax slabs guide for detailed comparison.
Tax Calculation Method
Tax is computed slab-wise: each income range is taxed at its respective rate. Total tax = sum of slab taxes + 4% Health & Education Cess. Rebate u/s 87A applies if income ≤ ₹7L (new) or ₹5L (old).
Step-by-Step Examples
₹12,00,000 income (New Regime)
Tax: ₹0 (0-3L) + ₹20,000 (3-7L) + ₹30,000 (7-10L) + ₹30,000 (10-12L) = ₹80,000. Cess: ₹3,200. Total: ₹83,200.
₹8,00,000 income (New Regime)
Tax: ₹0 (0-3L) + ₹20,000 (3-7L) + ₹10,000 (7-8L) = ₹30,000. Cess: ₹1,200. Total: ₹31,200.
Real-Life Applications
- Salary tax estimation for salaried professionals
- Comparing new vs old regime for tax planning
- Advance tax calculation for freelancers and businesses
- Monthly TDS estimation for budgeting
- Financial planning and investment decisions based on post-tax income
Advantages of Using This Income Tax Calculator
- Both new and old regime calculation in one tool
- Slab-wise breakdown table for transparency
- Automatic Section 87A rebate application
- 4% cess calculation included
- Monthly TDS estimate for salary planning
Common Mistakes to Avoid
- Confusing Financial Year (FY) with Assessment Year (AY)
- Forgetting 4% cess on computed tax amount
- Not claiming rebate u/s 87A when eligible (income ≤ ₹7L new regime)
- Mixing old and new regime deductions — each has different rules
- Not considering surcharge for income above ₹50L (10%) and ₹1Cr (15%)
Learn More
Income Tax Calculator for India FY 2025-26
This income tax calculator helps you estimate your tax liability under both the New and Old tax regimes for Financial Year 2025-26 (Assessment Year 2026-27). It shows slab-wise breakdown, applicable rebate under Section 87A, 4% Health & Education Cess, and monthly TDS estimate, helping you plan salary structure, investments, and tax-saving decisions.
How to Use This Income Tax Calculator
- Enter your annual taxable income: this is your gross salary minus standard deduction (₹75,000). For business income, enter net profit after expenses.
- Select your tax regime: New Regime (default, lower rates, no deductions) or Old Regime (higher rates but deductions like 80C, HRA allowed).
- View slab-wise breakdown: see exactly how much tax applies at each slab rate.
- Check total with cess: 4% Health & Education Cess is added on top of calculated tax.
- Compare regimes: switch between new and old to see which saves more for your specific situation.
New Tax Regime vs Old Tax Regime: Comparison
| Feature | New Regime (Default) | Old Regime |
|---|---|---|
| Tax rates | Lower (6 slabs: 0-30%) | Higher (4 slabs: 0-30%) |
| Section 80C (₹1.5L) | ❌ Not allowed | ✅ Allowed |
| HRA Exemption | ❌ Not allowed | ✅ Allowed |
| Section 80D (Health Insurance) | ❌ Not allowed | ✅ Allowed (₹25K-₹1L) |
| Home Loan Interest (80EEA) | ❌ Not allowed | ✅ Up to ₹2L |
| Standard Deduction | ✅ ₹75,000 | ✅ ₹50,000 |
| Rebate u/s 87A | Income ≤ ₹7L = zero tax | Income ≤ ₹5L = zero tax |
| Best for | Low/no deductions, simple filing | Heavy investors (₹3.75L+ deductions) |
| Default since | FY 2023-24 | Must opt-in |
Income Tax Slabs FY 2025-26: New Regime (Full Table)
| Income Slab | Tax Rate | Tax on Slab (Max) | Cumulative Tax |
|---|---|---|---|
| ₹0 – ₹3,00,000 | Nil | ₹0 | ₹0 |
| ₹3,00,001 – ₹7,00,000 | 5% | ₹20,000 | ₹20,000 |
| ₹7,00,001 – ₹10,00,000 | 10% | ₹30,000 | ₹50,000 |
| ₹10,00,001 – ₹12,00,000 | 15% | ₹30,000 | ₹80,000 |
| ₹12,00,001 – ₹15,00,000 | 20% | ₹60,000 | ₹1,40,000 |
| Above ₹15,00,000 | 30% | — | ₹1,40,000 + 30% of excess |
Add 4% cess: Total Tax Payable = Tax + (Tax × 4/100). Example: ₹80,000 tax → Cess = ₹3,200 → Total = ₹83,200.
Income Tax Slabs FY 2025-26: Old Regime
| Income Slab | Tax Rate |
|---|---|
| ₹0 – ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Deductions Available Under Old Regime
| Section | Deduction For | Maximum Limit |
|---|---|---|
| 80C | PPF, ELSS, LIC, EPF, NSC, tuition fees | ₹1,50,000 |
| 80CCD(1B) | NPS (additional) | ₹50,000 |
| 80D | Health insurance premium | ₹25,000 (self) + ₹50,000 (parents 60+) |
| 80E | Education loan interest | No limit (for 8 years) |
| 80EEA | Home loan interest (first home) | ₹1,50,000 |
| 24(b) | Home loan interest | ₹2,00,000 |
| HRA | House Rent Allowance | Formula-based (up to 50% of basic) |
| Standard Deduction | Flat deduction from salary | ₹50,000 |
Total possible deductions: ₹1.5L (80C) + ₹50K (NPS) + ₹75K (80D) + ₹2L (home loan) + ₹50K (standard) = up to ₹5.25 lakh for a salaried person with home loan and health insurance.
Common Income Tax Filing Mistakes
- Not comparing both regimes: Many taxpayers stick with new regime without checking if old regime saves more. If your 80C + HRA + 80D deductions exceed ₹3.75 lakh, old regime often wins.
- Forgetting to claim HRA: If you pay rent but live in a non-metro city, HRA exemption can save ₹50,000-₹1,50,000 in taxable income. Requires rent receipts and landlord PAN (if rent > ₹1 lakh/year).
- Not declaring all income sources: Interest on savings accounts (above ₹10,000), FD interest, freelance income, and capital gains must all be declared. Mismatch triggers notices.
- Missing Section 80TTA/80TTB: Savings account interest up to ₹10,000 (₹50,000 for senior citizens) is deductible. Many forget to claim this.
- Last-minute 80C investment: Investing ₹1.5 lakh in March just for tax-saving often leads to poor choices. Plan 80C at the start of the financial year through SIP/PPF.
Who Should Choose Which Regime
| Your Situation | Recommended Regime | Why |
|---|---|---|
| Salaried, no investments, no HRA | New Regime | Lower rates, no effort needed |
| Salaried, ₹1.5L in 80C, health insurance | Compare both | Close call, depends on income level |
| Salaried, HRA + 80C + home loan | Old Regime | Deductions likely exceed ₹3.75L benefit threshold |
| Income below ₹7 lakh | New Regime | Zero tax due to 87A rebate (₹7L limit vs ₹5L in old) |
| Income ₹7-10 lakh, minimal deductions | New Regime | Lower effective rate even without deductions |
| Income ₹15L+, heavy deductions (₹4L+) | Old Regime | 30% saved on ₹4L deductions = ₹1.2L savings |
| Freelancer/Business owner | New Regime | Most business deductions are already allowed in both |
Quick rule of thumb: If your total deductions (80C + 80D + HRA + home loan interest) exceed ₹3,75,000, old regime likely saves more. Otherwise, new regime wins.