How is income tax calculated in India?

Income tax is calculated by first computing your gross total income (salary + house property + capital gains + other sources), then subtracting eligible deductions to arrive at taxable income. Tax is computed on taxable income using the applicable slab rates, then rebate u/s 87A, surcharge, and 4% cess are applied to get the final tax payable.

What deductions are available under the Old Tax Regime?

The Old Regime allows Section 80C (Rs 1.5L for PPF, ELSS, LIC), Section 80D (health insurance), Section 80CCD(1B) for NPS (Rs 50K), Section 80TTA (savings interest Rs 10K), Section 24(b) home loan interest (Rs 2L), Section 80E education loan, Section 80G donations, HRA exemption, and standard deduction of Rs 50,000.

What deductions are allowed under the New Tax Regime?

The New Regime (FY 2025-26+) only allows a standard deduction of Rs 75,000 and employer NPS contribution under Section 80CCD(2). No other Chapter VIA deductions (80C, 80D, etc.) or HRA exemption are available.

Is income up to Rs 12 lakh tax-free under the New Regime?

Yes, for FY 2025-26 onwards, taxable income up to Rs 12 lakh is effectively tax-free due to the enhanced Section 87A rebate of up to Rs 60,000. With the Rs 75,000 standard deduction, salaried individuals with gross income up to approximately Rs 12.75 lakh pay zero tax.

How is surcharge calculated on income tax?

Surcharge is levied on the tax amount (not income) at: 10% for income Rs 50L-1Cr, 15% for Rs 1Cr-2Cr, 25% for Rs 2Cr-5Cr, and 37% above Rs 5Cr (Old Regime). Under the New Regime, surcharge is capped at 25%. The 4% Health & Education Cess is applied on tax + surcharge.

Which tax regime should I choose?

Choose the Old Regime if your total deductions (80C + 80D + HRA + home loan + NPS) exceed Rs 3-4 lakh. The New Regime is better if you have fewer deductions. Use this calculator to compare exact tax under both regimes for your specific income and deductions.

Income Tax Calculator India

Calculate income tax for FY 2024-27 with all deductions, Old vs New regime comparison, slab-wise breakdown, and monthly take-home.

Updated Mar 2026100% Private — runs in browser

Income Tax Calculator India

Comprehensive tax calculator with all deductions, Old vs New regime comparison, and slab-wise breakdown.

Financial Year

Age Group

Income Details (Annual)

Gross Salary / CTC

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Income from House Property

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Rental income minus 30% std deduction

Income from Other Sources

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Interest, dividends, etc.

Short-Term Capital Gains

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Long-Term Capital Gains

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Old Regime Deductions

These deductions apply only under the Old Tax Regime. The New Regime only allows Std Deduction + Employer NPS.

HRA Exemption Calculation

Basic Salary (Annual)

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HRA Received (Annual)

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Rent Paid (Monthly)

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City Type

Section 80C (PPF, ELSS, LIC...)(max ₹1,50,000)

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Section 80D - Self/Family(max ₹25,000)

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Health insurance premium

Section 80D - Parents(max ₹50,000)

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Parents health insurance

Section 80CCD(1B) - NPS(max ₹50,000)

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Section 80TTA - Savings Interest(max ₹10,000)

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Sec 24(b) - Home Loan Interest(max ₹2,00,000)

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Section 80E - Education Loan

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No upper limit

Section 80G - Donations

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Eligible donation amount

New Regime Deductions

Std Deduction of ₹75,000 is auto-applied. Only employer NPS (Sec 80CCD(2)) is additionally allowed.

Employer NPS Contribution (Sec 80CCD(2))

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Up to 10% of basic salary

Disclaimer: This calculator provides estimates for educational purposes only and does not constitute professional tax advice. Tax laws change frequently. Always consult a qualified Chartered Accountant or tax professional for personalized filing guidance.

All calculations happen in your browser. No data is stored or sent to any server.