Income Tax Calculator
Calculate your tax liability for FY 2025-26 (AY 2026-27)
Tax Details
New regime doesn't allow deductions. Standard deduction of ₹50,000 applied automatically.
Enter your income details and click Calculate Tax to see your results
Frequently Asked Questions
What is the difference between Old and New Tax Regime?
Old regime offers over 70 deductions and exemptions (80C, HRA, LTA, etc.) but has lower basic exemption (₹2.5L). New regime (default from FY 2023-24) has higher basic exemption (₹4L for FY 25-26), lower tax rates, but no deductions except standard deduction. Choose based on your total deductions.
What is Section 80C and what can I claim under it?
Section 80C allows deduction up to ₹1.5 lakh on investments in EPF, PPF, LIC premiums, ELSS mutual funds, NSC, home loan principal, tuition fees, and more. Available only in old tax regime. Reduces taxable income significantly for salaried individuals.
Do I need to file ITR if my income is below taxable limit?
Not mandatory if total income is below basic exemption limit. However, filing ITR is recommended for: claiming refunds, carrying forward losses, loan applications, visa processing, proof of income, and compliance with certain bank account thresholds (₹50L+ deposits).
What is advance tax and when do I need to pay it?
Advance tax is income tax paid in installments during the financial year if your tax liability exceeds ₹10,000. Payment dates: 15% by June 15, 45% by Sept 15, 75% by Dec 15, and 100% by March 15. Interest charged (234B, 234C) for delay or shortfall.
Can I change my tax regime every year?
Salaried individuals can switch between old and new regime every year while filing ITR. However, business/professional income earners can opt out of new regime only once, after which they're locked into old regime. Choose wisely based on your deductions and income pattern.
What happens if I don't file my ITR on time?
Late filing attracts penalty under Section 234F: ₹5,000 if filed before Dec 31, ₹10,000 thereafter (₹1,000 for income below ₹5L). You can't carry forward capital losses. Interest charged on unpaid tax. Prosecution possible for willful evasion. File before due date (July 31 for individuals).
How to Use This Calculator
- 1
Select your preferred tax regime: New Regime (higher exemption, no deductions) or Old Regime (lower exemption, multiple deductions).
- 2
Enter your gross annual income including salary, business income, interest income, and other sources.
- 3
If choosing Old Regime, enter deductions under 80C (up to ₹1.5L), 80D (health insurance), HRA, and other applicable sections.
- 4
Click Calculate Tax to see your taxable income, tax amount, 4% health & education cess, total tax payable, and effective tax rate.
Key Terms & Definitions
- Gross Total Income
- Total income from all sources including salary, house property, business/profession, capital gains, and other sources before any deductions.
- Taxable Income
- Income on which tax is calculated after subtracting all eligible deductions and exemptions from gross total income.
- Section 80C Deduction
- Tax deduction up to ₹1.5 lakh for investments in EPF, PPF, LIC, ELSS, NSC, home loan principal, tuition fees (only in old regime).
- Standard Deduction
- A flat deduction available to salaried individuals. ₹50,000 in new regime (default), ₹50,000 in old regime if opted.
- Health & Education Cess
- An additional 4% charge on calculated income tax, used for funding health and education schemes. Added to total tax payable.
- Effective Tax Rate
- The actual percentage of your gross income paid as tax (Total Tax / Gross Income × 100). Lower effective rate indicates better tax planning.
Formulas & Calculations
Taxable Income Calculation
Start with your total income from all sources, then subtract eligible deductions to arrive at taxable income. Only applicable in old regime. New regime doesn't allow most deductions.
Total Tax Payable
Calculate tax for each slab separately and add. Then add 4% cess. Example: ₹10L taxable (new regime FY 25-26) = ₹0 (0-4L) + ₹20K (4-8L @5%) + ₹20K (8-10L @10%) = ₹40K + ₹1.6K cess = ₹41.6K total.
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