Income Tax Calculator — India (₹)

Compare Old vs New tax regime for FY 2025-26. Calculate TDS, deductions under 80C, HRA exemption, and net monthly take-home salary.

💰 Salary Details
Enter your total CTC or gross annual salary
📋 Deductions (Old Regime)

These apply only under the Old Regime. New Regime allows only standard deduction.

🆕 New Regime saves you more
You save ₹1,11,800 with the New Regime
🧾 TDS & ITR Summary
Monthly Gross₹1,00,000
Monthly TDS (10%)- ₹10,000
Monthly In-Hand (after TDS)₹90,000
Total TDS Paid (12 months)₹1,20,000
Actual Tax (New Regime)₹0
💰 ITR Refund₹1,20,000
You've paid ₹1,20,000 TDS but owe only ₹0 tax. You'll get ₹1,20,000 refund on filing ITR.

🆕 New Regime

Gross Salary₹12,00,000
Standard Deduction- ₹75,000
Total Deductions- ₹75,000
Taxable Income₹11,25,000
Income Tax₹0
Surcharge₹0
Cess (4%)₹0
Total Tax₹0
Annual In-Hand₹12,00,000
Monthly In-Hand₹1,00,000
💰 ITR Refund₹1,20,000
Effective Tax Rate: 0.0%

📜 Old Regime

Gross Salary₹12,00,000
Standard Deduction- ₹50,000
Total Deductions- ₹2,25,000
Taxable Income₹9,75,000
Income Tax₹1,07,500
Surcharge₹0
Cess (4%)₹4,300
Total Tax₹1,11,800
Annual In-Hand₹10,88,200
Monthly In-Hand₹90,683
💰 ITR Refund₹8,200
Effective Tax Rate: 9.3%
📊 Tax Slab Breakdown — FY 2025-26

New Regime

Income SlabRate
₹0 – ₹4,00,0000%
₹4,00,000 – ₹8,00,0005%
₹8,00,000 – ₹12,00,00010%
₹12,00,000 – ₹16,00,00015%
₹16,00,000 – ₹20,00,00020%
₹20,00,000 – ₹24,00,00025%
₹24,00,000 – Above30%

Standard Deduction: ₹75,000 | Rebate u/s 87A up to ₹12L taxable income

Old Regime

Income SlabRate
₹0 – ₹2,50,0000%
₹2,50,000 – ₹5,00,0005%
₹5,00,000 – ₹10,00,00020%
₹10,00,000 – Above30%

Standard Deduction: ₹50,000 | Rebate u/s 87A up to ₹5L taxable income

What is Income Tax in India?

Income tax is a direct tax levied by the Government of India on income earned by individuals, HUFs, and businesses. For salaried employees, income tax is deducted at source (TDS) by the employer each month based on the estimated annual income. The Income Tax Act 1961 governs all tax rules, deductions, and exemptions.

For FY 2025-26 (AY 2026-27), India has two tax regimes: the New Regime (with lower slab rates, ₹75,000 standard deduction, and Section 87A rebate up to ₹12L taxable income making it effectively zero-tax) and the Old Regime (with higher slab rates but extensive deductions under 80C, 80D, HRA, home loan interest, and more). The right choice depends on your specific income and deduction profile.

How to Use This Income Tax Calculator

  • Simple Mode: Enter your annual gross salary (CTC or gross). The calculator automatically computes tax under both regimes and recommends the better one.
  • Salary Breakdown Mode: Enter Basic, HRA allowance, DA, special allowance separately for a more precise calculation — especially useful for HRA exemption calculations.
  • Deductions (Old Regime): Fill in your 80C investments (PPF, ELSS, EPF top-up), 80D health insurance, NPS under 80CCD(1B), home loan interest under 24(b), and HRA exemption.
  • Advanced — TDS Settings: Enter your TDS rate and months to see whether you'll get an ITR refund or have additional tax to pay at filing time.

Key Factors That Affect Your Income Tax in India

  • Gross Salary Level: Tax liability increases sharply above ₹12L under the New Regime and above ₹5L under the Old Regime. The slab progression means each additional rupee earned above ₹10L is taxed at 20–30%.
  • Deduction Utilization: Under the Old Regime, maximizing 80C (₹1.5L), 80D (₹25K), NPS 80CCD(1B) (₹50K), and home loan interest (₹2L) gives deductions of up to ₹4.25L — crucial for deciding which regime is better.
  • HRA Component: For metro city residents paying significant rent, HRA exemption can be ₹1–4 lakh annually, making the Old Regime more attractive.
  • Surcharge & Cess: Income above ₹50 lakh attracts surcharge (10–37%), dramatically increasing the effective tax rate. The 4% Health & Education Cess applies to all taxpayers on tax + surcharge.

Tips to Reduce Your Income Tax Legally in India

  • Max out 80C investments first: PPF, ELSS mutual funds, EPF top-up, LIC premium, or NSC up to ₹1.5 lakh — this is the single largest deduction available under the Old Regime.
  • Invest ₹50,000 in NPS under 80CCD(1B): This is an additional deduction over and above the 80C limit — available only under the Old Regime. Equivalent to ~₹15,000 tax saved for a 30% bracket taxpayer.
  • Claim HRA properly with rent receipts: If you pay rent and receive HRA from your employer, claim HRA exemption with actual rent receipts. For annual rent above ₹1 lakh, the landlord's PAN is mandatory.
  • Submit Form 12BB to your employer: Declare all investments and deductions at the start of the financial year so your employer deducts the correct TDS. Incorrect declarations lead to either overpaying TDS (wait for refund) or underpaying (interest liability).

Disclaimer: Tax calculations are based on FY 2025-26 (AY 2026-27) tax slabs. Actual tax liability may differ based on other income sources, surcharge applicability, and specific exemptions. Consult a CA for personalised tax planning.