Income Tax Calculator FY 2025–26 (AY 2026–27)
Free online Indian Income Tax Calculator for FY 2025–26 with Union Budget 2025 revised tax slabs. Compare New Tax Regime (Zero tax up to Rs 12.75 Lakhs with standard deduction) vs Old Tax Regime. Instant side-by-side analysis.
Income Tax Calculator FY 2025–26 (AY 2026–27)
UNION BUDGET UPDATEDSide-by-side New vs Old Regime comparison with ₹75,000 standard deduction and printable Form 16 declaration.
NEW TAX REGIME SAVES MORE
You save ₹6,240 in annual taxes by choosing the New Regime.
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Key Technical Features & Architecture
Pre-configured with revised New Tax Regime slabs: Rs 4L, 8L, 12L, 16L, 20L, 24L with Rs 75,000 Standard Deduction.
Real-time simultaneous calculation comparing New Regime vs Old Regime (80C, 80D, HRA, Home Loan).
Your salary, business income, investments, and deductions are calculated in browser RAM with zero tracking.
Budget 2025 Revised New Tax Regime Slabs (FY 2025–26 / AY 2026–27)
Authoritative standards, formatting thresholds, and official regulatory guidelines:
| Annual Total Income Slab | Income Tax Rate (New Regime) | Effective Tax Details |
|---|---|---|
| Up to Rs 4,00,000 | NIL (0%) | Completely tax-free basic exemption limit |
| Rs 4,00,001 to Rs 8,00,000 | 5% | Tax on income between 4L and 8L (Max: Rs 20,000) |
| Rs 8,00,001 to Rs 12,00,000 | 10% | Tax on income between 8L and 12L (Max: Rs 40,000) |
| Rs 12,00,001 to Rs 16,00,000 | 15% | Rebate u/s 87A ensures ZERO tax up to Rs 12.75L for salaried |
| Rs 16,00,001 to Rs 20,00,000 | 20% | Tax on income between 16L and 20L (Max: Rs 80,000) |
| Rs 20,00,001 to Rs 24,00,000 | 25% | Tax on income between 20L and 24L (Max: Rs 1,00,000) |
| Above Rs 24,00,000 | 30% | Flat 30% on income exceeding Rs 24 Lakhs + Cess (4%) |
How to Calculate Your Income Tax in 5 Steps
Follow this verified 5-step process for instant compliance and verified results:
Select Taxpayer Category
Choose Salaried Individual, Senior Citizen (60+ yrs), or Super Senior Citizen (80+ yrs).
Enter Gross Annual Income
Provide your annual salary, business profits, rental income, interest, and capital gains.
Claim Salary Exemptions
Rs 75,000 Standard Deduction applies automatically for New Regime. Add HRA & LTA for Old Regime.
Input Chapter VI-A Deductions
Declare Section 80C (up to 1.5L), 80D Mediclaim, 80CCD(1B) NPS (50k), and Home Loan Interest (24b).
Compare and Choose Best Regime
Review side-by-side tax liability with 4% Health & Education Cess and see exact regime savings.
Common Tax Planning Pitfalls & Misconceptions
Avoid common formatting errors, legal omissions, and calculation pitfalls:
Expecting PF/ELSS Deductions Under New Slabs
The New Tax Regime disallows Chapter VI-A deductions including Section 80C, 80D, and HRA. Only the Rs 75,000 Standard Deduction and Employer NPS (80CCD(2)) are eligible.
Assuming Income Exceeding 12.75L Is Fully Tax-Free
Under Section 87A rebate, tax is zero only if taxable income is up to Rs 12 Lakhs (or Rs 12.75L gross for salaried with Rs 75k standard deduction). Above this threshold, marginal relief applies.
Omitting the 4% Cess on Computed Tax
Budget calculations that overlook the mandatory 4% Health & Education Cess result in tax shortfalls and Section 234B/234C interest penalties.
Claiming Entire Rent Paid as Exemption
HRA exemption under Section 10(13A) is strictly the lowest of: actual HRA received, rent paid minus 10% of basic salary, or 50%/40% of basic salary.
Frequently Asked Questions
Comprehensive technical, legal, and operational answers
Q1.What is the revised zero-tax limit in Union Budget 2025 under the New Tax Regime?
Under Union Budget 2025, salaried individuals with a gross annual income up to Rs 12,75,000 pay ZERO income tax. This consists of the Rs 75,000 standard deduction plus the Section 87A tax rebate on taxable income up to Rs 12,00,000.
Q2.What is the Standard Deduction for salaried employees in FY 2025–26?
The Standard Deduction for salaried employees and pensioners under the New Tax Regime is Rs 75,000 (hiked from Rs 50,000). Under the Old Tax Regime, it remains Rs 50,000.
Q3.Which regime is better: New Tax Regime or Old Tax Regime?
The New Tax Regime is superior for taxpayers with total deductions (80C, 80D, HRA, Home Loan) under Rs 3,75,000. If your combined deductions exceed Rs 4,00,000 to Rs 4,50,000, the Old Tax Regime may yield lower tax.
Q4.Can I switch between the New and Old Tax Regimes every year?
Salaried individuals without business income can freely switch between the New and Old Regimes each financial year while filing Form ITR-1 or ITR-2. Individuals with business/profession income can only switch once.
Q5.Is Section 80C deduction (PPF, ELSS, LIC) available in the New Tax Regime?
No. Section 80C, 80D (health insurance), and HRA exemptions are not permitted in the New Tax Regime. In exchange, tax slab rates are substantially lower.
Q6.What deductions are still allowed under the New Tax Regime?
Eligible deductions under the New Regime include: 1) Rs 75,000 Standard Deduction for salaried/pensioners, 2) Employer contribution to NPS under Section 80CCD(2) up to 14% of salary, and 3) Transport allowance for specially-abled persons.
Q7.How does the Section 87A Marginal Relief work for income just above Rs 12 Lakhs?
Marginal relief ensures that the tax payable on income marginally above Rs 12 Lakhs does not exceed the amount of income that exceeds Rs 12 Lakhs, preventing sudden tax jumps.
Q8.Is my financial and salary data safe while using this calculator?
Yes. Kagazo executes all calculations 100% client-side inside your browser memory. Zero salary details, investments, or personal financial metrics are transmitted over the web.
Q9.What is the Health and Education Cess percentage?
A mandatory 4% Health and Education Cess is added to the total computed income tax amount under both the New and Old Tax Regimes.
Q10.Does this calculator support senior citizens and super senior citizens?
Yes. Under the Old Tax Regime, basic exemption limits of Rs 3,00,000 (Senior Citizens 60-79 yrs) and Rs 5,00,000 (Super Senior Citizens 80+ yrs) are automatically factored into the calculation.