Income Tax Calculator

India’s new tax regime for FY 2025-26 (unchanged for FY 2026-27 by Budget 2026) taxes successive ₹4 lakh bands of taxable income at 0%, 5%, 10%, 15%, 20% and 25%, and the rest above ₹24 lakh at 30%, plus 4% health and education cess. For a resident, the tax rebate (section 87A of the 1961 Act for FY 2025-26; the Income-tax Act, 2025 carries it into FY 2026-27) makes the tax nil up to ₹12 lakh of taxable income. This page applies that sketch, and a simplified old-regime sketch, to the income you type. It is an estimate, not an intimation from the Income Tax Department.

The cash-flow question

Salaried people in Gurugram, Ahmedabad and Chennai open a tax calculator in June when Form 16 arrives and again in January when they tweak investments. The new regime is the default for many, but old-regime deductions still matter for some HRA-heavy renters. IndiaKit lets you toggle the two sketches on the same ₹12 lakh income so the conversation with a CA starts from numbers, not from a forward.

The maths on this page

New-regime estimate: taxable income is sliced as ₹0–4 lakh at 0%, then ₹4 lakh bands at 5%, 10%, 15%, 20% and 25%, and the rest above ₹24 lakh at 30%. Up to ₹12 lakh the tax rebate cancels the slab tax (₹60,000 at ₹12 lakh), so the estimate is ₹0. Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh: at ₹12.5 lakh the slab tax of ₹67,500 becomes ₹50,000, plus 4% cess = ₹52,000. At ₹16 lakh it is ₹1,20,000 plus cess = ₹1,24,800.

The old-regime toggle on this page is simplified: ₹0–2.5 lakh at 0%, next ₹2.5 lakh at 5%, next ₹5 lakh at 20%, remainder at 30%, with the tax rebate of up to ₹12,500 up to ₹5 lakh, again with 4% cess. It does not model every deduction (80C, 80D, HRA) — use the HRA tool and your CA for those.

Surcharge (above ₹50 lakh) and standard-deduction details are not modelled, and Finance Acts change them. Confirm current slabs, rebates and the chosen regime on incometax.gov.in before you file. IndiaKit will not ask for PAN, Aadhaar, or OTP.

₹12 lakh taxable income in the new-regime sketch

Karthik in Chennai has about ₹12 lakh of taxable income after the standard deduction his payroll already applied. In the new regime the slab tax is ₹60,000, but as a resident the tax rebate cancels it, so the estimate is ₹0. A ₹50,000 rise to ₹12.5 lakh would cost him ₹52,000 in tax including cess, not the ₹70,200 the slabs alone suggest. He compares the old-regime toggle, then checks whether HRA on a T. Nagar rental would still justify old regime — that second question belongs with Form 16 and a CA, not with this page alone.

What a bank still has to confirm

This is not the e-filing utility. Surcharge, the rebate's exclusion of special-rate income, non-resident rules, special-rate income (capital gains, lottery), and employer TDS mismatches are omitted. The official calculator and your Annual Information Statement on incometax.gov.in override anything shown here.

Common questions

Which financial year does this new-regime sketch follow?

It follows the FY 2025-26 new regime, which Budget 2026 kept for FY 2026-27: nil to ₹4 lakh, then 5/10/15/20/25 on ₹4 lakh bands and 30% above ₹24 lakh, the tax rebate up to ₹12 lakh for residents, plus 4% cess. Always re-read the latest Finance Act tables on incometax.gov.in; Parliament can change bands after this text is written.

Does the old-regime option subtract 80C or HRA automatically?

No. It only applies a simplified slab table. Enter taxable income after deductions if you are modelling old regime, or use the HRA exemption calculator for that piece.

Why is there a 4% extra on the tax?

That is the health and education cess applied on the computed income tax in this estimate, matching the cess commonly levied on personal income-tax liability. Confirm the cess line on the official utility.