Selected Financial Year :
Income Tax Calculator: FY 2024-25 & FY 2025-26
Tired and confused about how much tax you have to pay? Fret no more!
Our income tax calculator tool is as easy to use as it gets. It will help you estimate your taxes for the new financial year. Whether you're more comfortable with the traditional deductions of the old tax regime or want to explore the simplified tax rates of the new tax regime, our tool is designed to guide you through both options.
Check the Union Budget 2025 updates for more effective tax planning.
Tax Calculator
Are you salaried person?
Are you receiving HRA?*
(Enter the deduction amount to be claimed under any other sections not listed above eg, 80GGC, 80G, 80U,80DD etc...)
Please fill all the mandatory field to Calculate
Budget 2025 Updates
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No income tax for income up to ₹12 Lakhs due to a rebate of ₹60,000 under the new tax regime.
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Updated slab rates for the new regime in FY 2025-26 (AY 2026-27):
Sr No | Income Tax Slabs | Tax Rate |
|---|---|---|
1 | Up to ₹4,00,000 | NIL |
2 | ₹4,00,001 - ₹8,00,000 | 5% |
3 | ₹8,00,001 - ₹12,00,000 | 10% |
4 | ₹12,00,001 - ₹16,00,000 | 15% |
5 | ₹16,00,001 - ₹20,00,000 | 20% |
6 | ₹20,00,001 - ₹24,00,000 | 25% |
7 | Above ₹24,00,000 | 30% |
What is the Income Tax Calculator?
The Income Tax Calculator is an online tool that helps individuals estimate their tax liability based on their income details. It also provides a one-to-one comparison of tax liabilities under the old and new tax regimes, helping users decide which option is more beneficial. Our tool is updated in accordance with the latest Union Budget 2025 to assist taxpayers in financial planning.
How Does TaxBuddy’s Income Tax Calculator Work?
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Computes tax liability based on income, deductions, and exemptions.
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Provides a comparative analysis of tax payable under the old and new tax regimes.
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Saves time and effort by offering quick and accurate tax estimations.
Understanding Your Taxable Income
Taxable income includes all the money you make that the government can tax.
This means not just the money you earn from jobs (like your salary), but also what you make from owning a house or apartment that you rent out (house property), money you gain from selling things for more than you bought them (capital gains), and cash from other sources.
Understanding with an Example
Let's suppose Mr. Kumar, earning ₹60,000 monthly, uses an income tax calculator to assess his FY 2024-25 tax liability. By inputting his income and deductions, he determines his tax obligations, ensuring financial planning and tax compliance.
Income Details and Deductions
Sr No | Nature of Income | Amount (₹) |
|---|---|---|
1 | Annual Salary | 7,20,000 (₹60,000 x 12) |
2 | Standard Deduction | 50,000 |
3 | Other Deductions (Investments, etc.) | 1,50,000 |
Calculation of Total Taxable Income:
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Gross Annual Salary: ₹7,20,000
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Less: Standard Deduction: ₹50,000
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Net Taxable Salary: ₹6,70,000
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Less: Other Deductions: ₹1,50,000
Total Taxable Income: ₹5,20,000
(Calculation: ₹7,20,000 - ₹50,000 - ₹1,50,000 = ₹5,20,000)
Income Tax Calculation Under Old Tax Regime
Tax Slabs and Applicable Tax Rates:
Sr No | Taxable Income Range | Tax Rate | Tax Calculation | Tax Amount (₹) |
|---|---|---|---|---|
1 | Up to ₹2,50,000 | Nil | No tax | 0 |
2 | ₹2,50,001 to ₹5,00,000 | 5% | 5% of (₹5,00,000 - ₹2,50,000) = ₹12,500 | ₹12,500 |
3 | Above ₹5,00,000 | 20% | 20% of (₹5,20,000 - ₹5,00,000) = ₹4,000 | ₹4,000 |
How to Use the Income Tax Calculator for FY 2024-25 & FY 2025-26?
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Follow these steps to calculate your income tax accurately:
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Select the Financial Year: Choose between FY 2024-25 or FY 2025-26.
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Enter Your Age Group: Tax liability varies based on age categories (0-60, 60-80, 80+).
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Input Your Income Details:
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For the old regime: Enter taxable salary after applicable deductions (HRA, LTA, etc.).
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For the new regime: Enter total salary without deductions.
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Enter Tax-Saving Investments (Only applicable for the old tax regime):
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Investments under Section 80C, 80D, 80E, 80TTA, etc.
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Home loan interest as per Section 24(b) and other eligible deductions.
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Click 'Calculate': View your estimated tax liability for both old and new regimes.
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Compare Tax Liability: Check the old vs new regime tax comparison and optimize your tax planning.
Components of Taxable Income
Salary: This is the income earned from employment.
Income from House Property: This is the rental income one earns from owned property.
Income from Business or Profession: Any profit or gain coming from business is taxable here.
Capital Gains: If one sells a capital asset, this is termed as capital gain.
Income from Other Sources: This includes income from interest on savings accounts, fixed deposits, dividends, winnings from lotteries, gifts received, etc.
Income from Investments: Includes interest on bonds, dividends from shares, rental income from real estate, etc.
Foreign Income: Income earned by Indian residents from sources outside India may also be taxable in India, subject to certain conditions and exemptions.
Old vs. New Tax Regime
Both regimes come with their own set of advantages and disadvantages. Here are the differences between the two:
Old Tax Regime:
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Under the old regime, taxpayers can claim various deductions and exemptions allowed under the Income Tax Act. These deductions include but are not limited to:
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Standard deduction on salary income.
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Deductions under Section 80C (Investments in Provident Fund, ELSS, PPF, etc.).
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Deductions under Section 80D (Medical insurance premium).
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Deductions under Section 24 (Interest on home loan).
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Deductions under Section 80TTA (Interest on savings account).
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Tax slabs under the old regime remain higher, with more tax rates for higher income brackets.
New Tax Regime:
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The new tax regime offers lower tax rates but fewer deductions and exemptions.
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Taxpayers cannot claim most deductions and exemptions available under the old regime.
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The new regime offers a flat tax rate structure with no deductions allowed, except for certain specified exemptions.
Key Differences Between Old and New Regime
Which Regime Should You Choose?
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If you have significant investments and deductions, the old tax regime may help reduce your taxable income.
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If you prefer a simplified tax structure with lower rates but no deductions, the new tax regime may suit you better.
Sr No | Feature | Old Tax Regime | New Tax Regime |
|---|---|---|---|
1 | Tax Rates | Higher | Lower |
2 | Deductions & Exemptions | Multiple available (80C, 80D, HRA, LTA) | Limited, only Standard Deduction |
3 | Best For | Individuals with significant deductions | Individuals preferring a simpler process |
The updated tax slab structure reflecting the New Tax Regime changes from FY 2024-25, which includes the ₹7 lakh rebate limit are as below:
Sr No | Annual Taxable Income | New Tax Regime (FY 2024-25 Onwards) | Old Tax Regime |
|---|---|---|---|
1 | Up to ₹2.5 lakh | Exempt | Exempt |
2 | Over ₹2.5 lakh to ₹3 lakh | Exempt | 5% |
3 | Over ₹3 lakh to ₹5 lakh | 5% | 5% |
4 | Over ₹5 lakh to ₹6 lakh | 5% | 20% |
5 | Over ₹6 lakh to ₹7 lakh | 5% | 20% |
6 | Over ₹7 lakh to ₹9 lakh | 10% | 20% |
7 | Over ₹9 lakh to ₹10 lakh | 10% | 20% |
8 | Over ₹10 lakh to ₹12 lakh | 15% | 30% |
9 | Over ₹12 lakh to ₹15 lakh | 20% | 30% |
10 | Above ₹15 lakh | 25% | 30% |
Notes:
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In the New Tax Regime, individuals with income up to ₹7 lakh receive a rebate under Section 87A, making their tax liability effectively zero.
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The New Tax Regime has a simplified slab structure and lower rates for certain income brackets compared to the Old Tax Regime, aimed at providing relief to middle-income taxpayers.
Step by Step Guide to Access Taxbuddy's Income Tax Calculator
Step 1: Access the Calculator:
Navigate to https://www.taxbuddy.com/ > Resources > Calculators > Select Income Tax Calculator.
Step 2: Provide details such as: Financial year, age, and whether you're salaried or not.
Step 3: Enter your financial details and click on "'CALCULATE."
Step 4: The calculator will compute your income tax based on the details you specify.
Maximizing Your Tax Savings
To make the most out of your tax savings, focusing on wise investments and deductions can be a game-changer.
With the right tax-saving tips, you can significantly reduce the amount of tax you have to pay.
By carefully choosing your investments and making the most of various deductions allowed by the tax laws, you can keep more money in your pocket.
Investment Options for Tax Saving
When it comes to reducing your taxable income, not all investments are created equal. Some can be powerful allies in your quest for tax savings. Let's explore a few options:
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Public Provident Fund (PPF): The PPF is like a savings account on steroids when it comes to tax savings.
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Equity-Linked Savings Scheme (ELSS): It is a mutual fund that comes with a tax-saving cape.
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National Pension System (NPS): NPS is like a savings plan for your older self. You contribute to it throughout your working life, and it helps you save on taxes today.
These are just a few of the options available for tax-saving investments.
Frequently asked questions
Q
How do I calculate my tax liability?
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You can use the income tax calculator to compute your tax liability by entering details of your income, deductions, and exemptions. The tool will display your total tax payable under both old and new tax regimes.
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How do I choose between the old and new tax regimes?
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Choosing between the old and new tax regimes depends on factors such as income, eligible deductions, and financial goals. Key differences include:
Title | Criteria | Old Tax Regime | New Tax Regime |
|---|---|---|---|
1 | Tax Rates | Higher | Lower |
2 | Deductions and Exemptions | Multiple available (e.g., Section 80C, 80D, HRA) | Limited; Standard deduction only |
3 | Best For | Individuals with high deductions | Individuals preferring simplicity |
Decision Making:
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Evaluate Deductions: Calculate savings from deductions under the old regime (e.g., 80C, 80D).
Use the Calculator: Compare tax liability under both regimes before deciding.
Q
Does everyone have to file an income tax return?
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If an individual's income is below the basic exemption limit, they are not required to file a tax return. However, if they wish to claim a refund for excess tax deducted, filing an ITR is necessary.
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Does the income tax calculator consider TDS?
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No, the calculator estimates total tax liability. However, TDS deductions can be accounted for while filing the tax return. You can use a TDS calculator for precise calculations.
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How does the calculator determine my tax liability, and can it be used by both salaried and self-employed individuals?
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The calculator estimates tax by:
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Entering income from salary, business, property, and investments.
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Deducting eligible exemptions and deductions.
Applying relevant tax slab rates. It can be used by both salaried and self-employed individuals.
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How to calculate surcharge or rebate on income tax?
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Simply input your income and deductions in the calculator. It will compute:
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Surcharge applicable for higher-income taxpayers.
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Rebate under Section 87A, making tax liability zero for eligible incomes.
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How is tax calculated on arrear salary?
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Include arrear salary under Income from Salary in the calculator. It will determine total tax liability, factoring in standard deductions and slab rates.
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Can taxpayers switch between the old and new tax regimes each year?
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Yes, individual taxpayers, especially salaried, can switch tax regimes annually before filing their return. However, business income earners face restrictions on frequent changes.
Q
What deductions are available under the Income Tax Act, and how do they differ between regimes?
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Sr No | Deduction | Old Regime | New Regime |
|---|---|---|---|
1 | 80C (Investments in PPF, ELSS, etc.) | Available | Not applicable |
2 | 80D (Health Insurance Premiums) | Available | Not applicable |
3 | HRA (House Rent Allowance) | Available | Not applicable |
4 | Standard Deduction | ₹50,000 | ₹75,000 |
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What are the tax benefits available for senior citizens?
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Higher exemption limits.
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Exemption from advance tax if there is no business income.
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Enhanced deduction on health insurance premiums (80D).
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How do home loan interest deductions work under different regimes?
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Under Section 24(b), taxpayers can claim up to ₹2 lakh in home loan interest deduction under the old regime. This benefit is not available under the new regime.
Q
How often are tax slab rates updated, and what impact does it have?
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Tax slabs are typically updated annually in the Union Budget. Changes affect taxpayers by altering tax payable, requiring adjustments in tax planning.
Q
Can I use the calculator if I have other than salary income?
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Yes, the calculator supports multiple income sources such as salary, rental income, and interest income.
Q
What is the surcharge and cess applicable on income tax?
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Surcharge: Additional tax for high-income earners:
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10% for income > ₹50 lakh & ≤ ₹1 crore.
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15% for income > ₹1 crore & ≤ ₹2 crore.
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25% for income > ₹2 crore & ≤ ₹5 crore.
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37% (capped at 25% under the new regime) for income > ₹5 crore.
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Health and Education Cess: Additional 4% on total tax liability.
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What should taxpayers consider when selecting a tax regime?
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Evaluate annual income, deductions, and long-term financial goals before choosing a regime. While salaried individuals can switch annually, business owners have limited flexibility.