Calculating your income tax liability manually might be complicated and take a lot of time. Hence, an online income tax calculator can be used to make the process easy. An income tax calculator is an online application that calculates your tax liability on the basis of your income, relevant tax slabs, and deductions.
Below is a comparison of your tax liability under both the old and new tax regimes:
| Particulars | Old Regime | New Regime |
|---|---|---|
| Gross Total Income | ₹0 | ₹0 |
| Total Deductions | ₹0 | ₹0 |
| Taxable Income | ₹0 | ₹0 |
| Income Tax | ₹0 | ₹0 |
| Health & Education Cess (4%) | ₹0 | ₹0 |
| Total Tax Liability | ₹0 | ₹0 |
Recommendation:
An Income-tax calculator is an online tool that is used to calculate taxes based on income, tax slabs and the tax amount. The amount of tax that a person is supposed to pay is proportional to the net annual income of the person, and only those people whose income exceeds a certain limit are required to pay taxes. A taxpayer is given the option to opt for either the old or the new taxation scheme, each with varying taxation rates and deductions. We have revised our calculator as per the proposed income tax changes in the Union Budget 2025 to assist you in calculating your tax liability for improved financial planning.
The Union Budget 2025 brought with it a few major changes in the income tax regime. The major highlights are as follows -
Using an online income tax calculator provides you with many benefits, such as:
Follow the given steps for using Income Tax Calculator:
Calculating income tax on your salary in India involves several steps, and the process varies depending on whether you choose the Old Tax Regime or the New Tax Regime. Here's a step-by-step guide to help you understand and compute your tax liability.
Your gross salary includes:
Example: If your monthly salary components are:
Basic Salary: ₹50,000
HRA: ₹20,000
Special Allowance: ₹10,000
Then, your annual gross salary would be: ₹50,000 × 12 + ₹20,000 × 12 + ₹10,000 × 12 = ₹9,60,000
Under the Old Tax Regime:
Exemptions:
Deductions:
Under the New Tax Regime:
Exemptions: Most exemptions are not available.
Deductions:
Subtract the total exemptions and deductions from your gross salary.
Example under Old Regime:
Gross Salary: ₹9,60,000
Less: HRA Exemption: ₹1,80,000
Less: Standard Deduction: ₹50,000
Less: Section 80C Deductions: ₹1,50,000
Taxable Income: ₹5,80,000
Example under New Regime:
Gross Salary: ₹9,60,000
Less: Standard Deduction: ₹75,000
Taxable Income: ₹8,85,000
Old Tax Regime Slabs:
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
New Tax Regime Slabs (FY 2025–26):
| Income Range (₹) | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹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% |
Compute the tax based on the slabs applicable to your taxable income.
Example under Old Regime (Taxable Income: ₹5,80,000):
₹2,50,000 at 0% = ₹0
₹2,50,000 at 5% = ₹12,500
₹80,000 at 20% = ₹16,000
Total Tax: ₹28,500
Example under New Regime (Taxable Income: ₹8,85,000):
₹4,00,000 at 0% = ₹0
₹4,00,000 at 5% = ₹20,000
₹85,000 at 10% = ₹8,500
Total Tax: ₹28,500
Add 4% of the total tax as Health and Education Cess.
Old Regime:
Cess: ₹28,500 × 4% = ₹1,140
Total Tax Payable: ₹29,640
New Regime:
Cess: ₹28,500 × 4% = ₹1,140
Total Tax Payable: ₹29,640
Under Section 87A, if your taxable income is up to ₹7,00,000 (Old Regime) or ₹12,00,000 (New Regime), you may be eligible for a tax rebate, reducing your tax liability.
| Particulars | Old Regime (₹) | New Regime (₹) |
|---|---|---|
| Gross Salary | 9,60,000 | 9,60,000 |
| Exemptions & Deductions | 3,80,000 | 75,000 |
| Taxable Income | 5,80,000 | 8,85,000 |
| Tax Before Cess | 28,500 | 28,500 |
| Health & Education Cess (4%) | 1,140 | 1,140 |
| Total Tax Payable | 29,640 | 29,640 |
Frequently Asked Questions (FAQs)
An Income Tax Calculator is an online tool that estimates your tax liability based on your income, deductions, and the chosen tax regime (old or new). By inputting details like salary, HRA, deductions under Section 80C, etc., the calculator computes your taxable income and the corresponding tax payable.
To use the calculator:
1. Select the assessment year (e.g., 2026–27 for FY 2025–26).
2. Enter your age and residential status.
3. Input your income details (salary, rental income, etc.).
4. Add deductions (like 80C, 80D) if applicable.
5. Choose between the old and new tax regimes.
The calculator will display your tax liability under both regimes for comparison.
The choice depends on your income structure and eligible deductions:
Old Regime: Offers various exemptions and deductions (e.g., HRA, 80C, 80D).
New Regime: Provides lower tax rates but minimal deductions.
While the calculator provides a close estimate, it's advisable to consult a tax professional or use official e-filing portals for precise calculations, especially if you have complex income sources.
Most calculators allow inputs for:
- Salary Income
- House Property Income
- Capital Gains
- Business or Profession Income
- Other Sources (e.g., interest, dividends)
Yes, many calculators offer options to select different assessment years, allowing you to calculate tax liabilities for past financial years.
Yes, most online income tax calculators are free and accessible to both registered and unregistered users.
Typically, income tax calculators compute total tax liability. To determine the final payable tax or refund, you need to subtract the TDS already deducted by employers or other entities.
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