Calculators Tax
Income Tax Calculator: FY 2025-26
Section-wise tax computation mapped to Form 16 Part B and ITR schedules. Fill in your salary, deductions, capital gains, or professional income: get old regime vs new regime side-by-side with the exact saving or cost of switching. Covers ITR-1, ITR-2, and ITR-4 (Sec 44ADA / 44AD presumptive).
Your Profile — FY 2025-26 (AY 2026-27)
Why does age matter?
The old regime gives higher basic exemption to senior citizens: ₹3 lakh (60-79) and ₹5 lakh (80+) vs ₹2.5 lakh for others. The new regime has the same slabs for everyone. Seniors (60+) also get 80TTB interest deduction of ₹50,000 instead of 80TTA's ₹10,000.
Which form applies to me?
ITR-1 (Sahaj): Salaried employees with income below ₹50 lakh. No capital gains, no business income.
ITR-2: Salaried + capital gains from stocks, mutual funds, property. Includes ITR-1 cases + capital gains.
ITR-4 (Sugam): For doctors, lawyers, architects, engineers, CAs, and other professionals filing presumptive income under Sec 44ADA. Also small businesses under Sec 44AD.
Schedule S A. Salary Income Sec 17
A1. Gross Salary Form 16 Part B, Item 1
What goes here?
Everything from your salary slip — Basic Pay, DA, HRA allowance, LTA allowance, Special Allowance, Performance Bonus, and any other allowances. This is BEFORE subtracting any tax exemptions. Your employer reports this as a single number on Form 16 Part B, Row 1(a).
Practical tip: Add up your 12 monthly payslips' "Gross Salary" column. This equals 17(1).
What are perquisites?
Taxable value of non-cash benefits: company car used for personal trips, rent-free or subsidised company accommodation, interest-free or concessional loans, club memberships, ESOP (taxed at exercise as a perquisite under Sec 17(2)(vi)). Your employer computes this in Form 12BA and reports it in Row 1(b). Leave 0 if none.
What goes here?
Compensation received in lieu of salary: ex-gratia payments, non-compete fees, signing bonus (received, not clawback), terminal compensation. Enter 0 if not applicable.
A2. Less: Allowances exempt under Section 10 Form 16 Part B, Item 2
HRA exemption rules [Sec 10(13A) read with Rule 2A]
The exempt HRA is the least of three figures: (a) actual HRA received from employer, (b) actual rent paid minus 10% of Basic+DA, (c) 50% of Basic+DA if you live in a metro city (Delhi, Mumbai, Kolkata, Chennai) or 40% for all other cities. You must actually pay rent — no exemption if you live rent-free or own the house you live in.
Metro cities: Delhi (NCR), Mumbai (MMR), Kolkata, Chennai — per CBDT notification.
Leave Travel Allowance rules
Exempt for actual travel within India (rail/air economy class) for self + family. Maximum twice in a 4-year block period. Current block: 2022–2025. Only travel fare is exempt — hotel, food, local transport not included. Your employer exempts this in Form 16 after you submit proof.
Children allowance limits
Education allowance: ₹100/child/month for max 2 children = ₹2,400/year.
Hostel allowance: ₹300/child/month for max 2 children = ₹7,200/year.
Combined maximum = ₹9,600/year per Sec 10(14)(ii) read with Rule 2BB.
Other Section 10 exemptions
Includes: conveyance allowance [10(14)], uniform allowance [10(14)], telephone/internet reimbursement, gratuity received during service [10(10)]. Enter the total exempt amount as shown in Form 16 Part B Row 2.
A3. Less: Deductions under head Salaries [Sec 16] Form 16 Part B, Item 4
Only for government employees
Allowed only for Central/State Government employees as a deduction (not employees of PSUs, banks, or private sector). Deductible: least of actual allowance received, 1/5th of basic salary, or ₹5,000. Not available in new regime.
State-specific; not available in new regime
Professional Tax (PT) is a state-level levy on employment income. Max ₹2,500/year as per Sec 276 of the Constitution. Deductible under Sec 16(iii) in the old regime. States like Karnataka, Maharashtra, West Bengal, Andhra Pradesh, Telangana charge PT. Delhi, Haryana, Punjab, UP, Rajasthan do not. Not deductible in the new regime.
Schedule HP B. House Property Sec 22–27
Schedule OS E. Other Sources Sec 56
Savings bank interest and 80TTA / 80TTB
Interest from savings accounts in banks, post offices, and co-operative societies. This is taxable but offset by a deduction: 80TTA (under 60): up to ₹10,000. 80TTB (seniors 60+): up to ₹50,000 (covers FD interest too for seniors). The deduction is auto-applied in Section F based on your age bracket. Enter the full gross interest here.
FD interest is fully taxable
Interest from bank FDs and RDs is taxable at your slab rate in both regimes. TDS @10% is deducted by the bank if interest exceeds ₹40,000/year (₹50,000 for seniors). The TDS is a credit against your final tax liability — not an additional tax.
Dividends are taxable since FY 2020-21
Since April 2020 (abolition of DDT), dividends from Indian companies and mutual funds are taxable in your hands at slab rate. The company deducts TDS @10% if dividend exceeds ₹5,000. No 80TTA deduction applies to dividend income.
Schedule VIA F. Deductions (Chapter VI-A)
What qualifies under 80C (₹1.5L basket)
All of these together are capped at ₹1,50,000: Employee PF contribution (your share), ELSS mutual fund SIP, PPF deposits, LIC premium, NSC accrued interest, Home loan principal repayment, Sukanya Samriddhi (SSY), 5-year bank FD, ULIP premium, Children's tuition fees (school/college), NPS Tier-I employee contribution [also counted under 80CCD(1)].
Note: Your EPF contribution already counts here. Most salaried employees hit the ₹1.5L limit without any additional investment.
NPS additional deduction — over and above 80C
If you contribute to NPS Tier-I (beyond what you already claimed in 80C), you get an extra deduction of up to ₹50,000 per year under 80CCD(1B). This is in addition to, and does not overlap with, the ₹1.5L under 80C. Combined with 80C, total self-contribution benefit = ₹2,00,000/year. Not available in the new regime.
Employer NPS — the most powerful deduction in new regime
Your employer's contribution to NPS Tier-I is deductible under Sec 80CCD(2) — this is the ONLY deduction available in the new tax regime apart from the standard deduction. Limit: 10% of Basic+DA (private employees); 14% (Central Government employees).
Why this matters: If your employer contributes ₹60,000/year to NPS, this reduces your taxable income by ₹60,000 in BOTH old and new regime. This is a direct advantage — negotiate with your employer to restructure your CTC to include employer NPS.
80D health insurance deduction
Premium paid for health insurance covering yourself, spouse, dependent children: up to ₹25,000 (₹50,000 if you are a senior citizen). Additionally, premium for parents: up to ₹25,000 (₹50,000 if parents are senior). Maximum combined: ₹1,00,000/year (both you and parents are seniors). Includes preventive health check-up (₹5,000 within the overall limit). Cash payments are not allowed for 80D.
Education loan interest — no upper limit
Full interest paid on a loan taken for higher education (your own, spouse, children, or students for whom you are the legal guardian) is deductible — no upper limit. Deductible for 8 consecutive years starting from the year in which you start repaying interest (or until the interest is fully repaid, whichever is earlier). Only the interest portion qualifies — not the principal. Not available in new regime.
Donations: 100% or 50% deductible
Donations to approved institutions are deductible. Enter the deductible amount (not the donated amount): 100% funds (PM CARES, PMNRF, state CMs' relief funds, National Defence Fund, etc.) — enter the full amount. 50% funds (PM's National Relief Fund, institutions approved under 80G(5)) — enter 50% of what you donated. Some 50% deductions are subject to a 10% of adjusted gross total income limit. Cash donations above ₹2,000 are not allowed.
Disability deduction — fixed amount
Flat deduction for a person with a disability (as certified by a medical authority): ₹75,000 for a disability of 40–80%, and ₹1,25,000 for severe disability (80% or more). You do not need to prove medical expenses — it is a fixed deduction. Not available in the new regime.
Part B-TTI Tax Computation — Old Regime vs New Regime
| Item | Old Regime | New Regime | Difference |
|---|---|---|---|
| Gross Total Income (GTI) | ₹9,67,600 | ₹9,45,000 | -₹22,600 |
| Less: Chapter VI-A deductions | − ₹1,75,000 | − ₹0 | |
| Total Income (Taxable) | ₹7,92,600 | ₹9,45,000 | |
| Income taxed at slab rate | ₹7,92,600 | ₹9,45,000 | |
| Slab tax | ₹71,020 | ₹34,500 | |
| Less: Rebate u/s 87A | — | − ₹34,500 | |
| Health & Education Cess (4%) | ₹2,841 | ₹0 | |
| Total Tax Payable | ₹73,861 | ₹0 | New saves ₹73,861 |
| Effective Tax Rate | 7.6% | 0.0% |
This calculator is for illustrative purposes only (FY 2025-26). Tax laws and CBDT circulars may change. For filing advice, consult a qualified Chartered Accountant. Capital gains rates reflect post-Budget 2024 changes (effective 23 July 2024).
Old regime vs new regime: the 2025-26 picture
The new tax regime (introduced in Budget 2020, overhauled in Budgets 2023 and 2025) has now become the default regime from FY 2024-25 onwards. If you do not explicitly opt for the old regime while filing, the new regime applies.
The new regime offers significantly lower slab rates, a ₹75,000 standard deduction, and a ₹60,000 rebate under Sec 87A: making income up to ₹12 lakh effectively tax-free. The trade-off is that nearly all deductions (80C, 80D, HRA, home loan interest on self-occupied property, and more) are unavailable.
New regime slabs (Budget 2025): FY 2025-26
| Income range | Rate | Tax on slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,001 – ₹12,00,000 | 10% | ₹40,000 |
| ₹12,00,001 – ₹16,00,000 | 15% | ₹60,000 |
| ₹16,00,001 – ₹20,00,000 | 20% | ₹80,000 |
| ₹20,00,001 – ₹24,00,000 | 25% | ₹1,00,000 |
| Above ₹24,00,000 | 30% | On balance |
Standard deduction: ₹75,000 from salary income [Sec 16(ia)]. Section 87A rebate: Up to ₹60,000 if total income ≤ ₹12 lakh (after standard deduction, before CG at special rates). This effectively makes ₹12.75 lakh (₹12L + ₹75K standard deduction) from gross salary tax-free.
Old regime slabs: FY 2025-26
| Income range | Rate (under 60) | Rate (60–79, Senior) | Rate (80+, Super Senior) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | — | — |
| Up to ₹3,00,000 | — | Nil | — |
| Up to ₹5,00,000 | — | — | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% | 5% (above ₹3L) | — |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Standard deduction: ₹50,000 [Sec 16(ia)]. Section 87A rebate: Up to ₹12,500 if total income ≤ ₹5 lakh.
Surcharge: when it applies and how much
Surcharge is an additional percentage charged on your income tax — not on your income. It applies only when total income crosses ₹50 lakh.
| Total income range | Surcharge (old) | Surcharge (new) | On CG (111A / 112A) |
|---|---|---|---|
| Up to ₹50,00,000 | Nil | Nil | Nil |
| ₹50L – ₹1 Crore | 10% | 10% | 10% |
| ₹1 Cr – ₹2 Crore | 15% | 15% | 15% (capped) |
| ₹2 Cr – ₹5 Crore | 25% | 25% | 15% (capped) |
| Above ₹5 Crore | 37% | 25% (capped) | 15% (capped) |
Capital gains under Sec 111A (STCG equity), 112A (LTCG equity), and 112 (LTCG other) attract surcharge capped at 15%, regardless of total income. This is a significant tax advantage for high-net-worth investors — a person with ₹10 crore of salary would face 37% surcharge on salary income but only 15% surcharge on LTCG from equity. Health and Education Cess of 4% applies on total tax including surcharge.
How to read your Form 16 Part B and enter it here
Your employer gives you Form 16 every year (by 15 June). Part A has the TDS deposited; Part B has the income computation. Here is how every row of Form 16 Part B maps to this calculator:
| Form 16 Part B row | What it contains | Calculator section |
|---|---|---|
| Row 1(a) — Salary u/s 17(1) | Basic + DA + HRA + LTA + Special Allowance + Bonus + all allowances, before any exemption | Section A, field 17(1) |
| Row 1(b) — Perquisites u/s 17(2) | Car perk, accommodation, ESOP at exercise, interest-free loans | Section A, field 17(2) |
| Row 1(c) — Profits in lieu u/s 17(3) | Ex-gratia, non-compete, severance, signing bonus | Section A, field 17(3) |
| Row 2 — Sec 10 exemptions | HRA 10(13A), LTA 10(5), Children Ed 10(14), Other | Section A2 — Sec 10 exemptions |
| Row 4(a) — Standard Deduction | ₹50,000 old / ₹75,000 new — auto-applied | Auto (shown in salary result) |
| Row 4(b) — Entertainment Allowance | Government employees only | Section A3 |
| Row 4(c) — Professional Tax | State PT deducted (old regime only) | Section A3 |
| Row 5 — Net Salary | Computed: Row 1 total − Row 2 − Row 4 | Shown in results of Section A |
Tip: If you have Form 16 already, directly enter Row 1(a), 1(b), 1(c), and Row 2 into the calculator. Everything else is either auto-computed or entered in the subsequent sections.
Deductions: what matters most in old regime
The decision between old and new regime often comes down to whether your deductions exceed a break-even threshold. Here are the deductions that move the needle most:
80C basket (₹1.5 lakh) — almost everyone hits this
Employee PF contribution alone typically puts most salaried employees at or near ₹1.5 lakh. If your basic salary is ₹6L/year, your EPF is ₹72,000/year. Add ELSS SIPs, LIC premium, or PPF to reach the cap. Once you hit ₹1.5L in 80C, you save ₹7,500–₹45,000 in tax depending on your slab.
80CCD(2) — the most powerful deduction in new regime too
If your employer contributes to your NPS Tier-I account (under their flexi-benefit plan or CTC restructuring), up to 10% of Basic+DA is deductible in both old and new regime under Sec 80CCD(2). This is a zero-cost restructuring: the employer's NPS contribution comes from your CTC anyway — structuring it under 80CCD(2) simply makes it tax-deductible in both regimes.
Home loan interest (Sec 24(b)) — high value in old regime
For self-occupied property, up to ₹2,00,000/year of home loan interest is deductible only in the old regime. At a 30% slab + cess, this saves up to ₹62,400. If you have a significant home loan, this single deduction often tips the balance towards the old regime.
HRA exemption — easy money for renters
If you live in a rented house and receive HRA, the exemption can be substantial: up to 50% of your Basic salary in metro cities. This exemption is available in the old regime only. For someone with a ₹50,000/month basic in a metro paying ₹25,000/month rent, the HRA exemption can be ₹2–3 lakh per year.
Frequently asked questions
Can I switch between old and new regime every year?
Salaried employees and those without business income (ITR-1, ITR-2) can switch between old and new regime every financial year. You make this choice when filing your ITR (due 31 July). For ITR-4 filers (presumptive business income), switching back from new to old regime is allowed only once in your lifetime.
My employer defaults me to the new regime. How do I change it?
Submit a declaration to your employer (typically via a form or HR portal) at the start of the financial year (April). Your employer must then deduct TDS as per the old regime. Even if you miss this, you can choose the old regime while filing your ITR — you will get a refund if more TDS was deducted than required. The deadline to file with the old regime election is 31 July.
Is HRA exemption available in the new tax regime?
No. HRA exemption under Section 10(13A) is not available in the new tax regime. This is one of the key advantages of the old regime for employees paying rent. If you claim significant HRA exemption, it may outweigh the new regime's lower slab rates and make the old regime better for you.
What is the effective tax on ₹12 lakh salary in the new regime?
For a salaried individual with ₹12 lakh gross salary in FY 2025-26 under the new regime: Standard deduction ₹75,000 → taxable income ₹11.25 lakh. This is below ₹12 lakh, so the full slab tax (approximately ₹95,000) is covered by the ₹60,000 rebate and the fact that taxable income is below ₹12L. Net tax payable = ₹0. Effectively, a salary of ₹12.75 lakh (₹12L + ₹75K standard deduction) results in zero tax under the new regime.
Do I need to pay surcharge on capital gains from mutual funds?
Yes, if your total income (including capital gains) exceeds ₹50 lakh. However, for LTCG from equity and equity-oriented mutual funds (Section 112A) and STCG (Section 111A), the surcharge is capped at 15% — regardless of how high your total income is. This cap applies in both old and new regime. For a person with ₹5 crore of LTCG from equity, surcharge is 15% (not 37%/25%) — a significant saving.
I am a doctor / consultant. Should I use Sec 44ADA or file actual accounts?
Sec 44ADA (presumptive taxation at 50% of receipts) is almost always beneficial if your actual profit margin is above 50% — because you declare only 50% as income. If your actual net income after expenses is below 50% of receipts, you are better off maintaining books and claiming actual expenses. Note: once you opt out of 44ADA (by declaring lower than 50%), you must maintain books and get a tax audit for the next 5 years.
Can I claim 80C and HRA in the same year?
Yes, in the old regime, you can claim both 80C (up to ₹1.5 lakh) and HRA exemption (Section 10(13A)) in the same year — they are independent deductions. You can also simultaneously claim home loan principal (under 80C), home loan interest (under Section 24(b)), and HRA (if you are paying rent in a different city from the home loan property). All three together make the old regime significantly better for many salaried employees.
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