Income Tax Calculator - FY 2025-2026

When calculating income tax, it is vital to consider income from every source of the taxpayer, claiming exemptions and deductions, wherever it is appropriate, and calculating the tax according to the applicable tax rates. An individual has the option to file their taxes under either the old regime or the new regime, based on what is more beneficial to them. To calculate your tax liabilities accurately, you can use Savetax's online income tax calculator. Our tool will simplify the process of comparing both regimes, while also helping you understand your tax obligations. Let's now understand how our calculator tool works, the benefits of using it, and how it can help ease your tax planning, ensuring you make smarter decisions.

What is SaveTax's Income Tax Calculator?

Our Income Tax Calculator is a user-friendly tool that helps you calculate your tax liability based on your income details. It will also provide you with a comparison of tax liability between the old and new tax regimes to help you decide which one is more beneficial for you, so that you can make a choice accordingly. We ensure that our tool is kept up to date. Currently, we have updated our tool in accordance with the income tax amendments proposed in the Union Budget 2025, to help you determine your tax liability and plan your finances more effectively.

How to Use Our Income Tax Calculator for FY 2024-2025 (AY 2025-2026) and FY 2025-2026 (AY 2026-2027)?

Follow the steps below to use our tax calculator:

Step 1: Select the financial year for which you want to calculate the taxes.

Step 2: Next, enter your age, as tax liability varies under the old regime depending on the age group.

Step 3: Click on "Continue."

Step 4: Fill in your salary, which refers to your salary before deducting various exemptions, such as HRA and others. In case LTA deduction applies to you, then reduce that from the salary and fill in the net amount. If any exempt allowance applies to your case, then enter that in the specific field available for the same.

Step 5: You must also provide additional details, along with your taxable salary, such as interest income, interest paid on a home loan, rental income, and interest paid on a loan for a self-occupied property.

Step 6: For income received from a digital asset, fill in the net income (Sale consideration - cost of acquisition). Once done, click on "Continue".

Step 7: If applicable to your case, you are also allowed to enter your tax-saving investments under Section 80C, 80D, 80G, 80E, and 80TTA.

Step 8: Click on "Calculate" to compute your tax liability. You can then compare the old and new tax regimes.

What are the Income Tax Slab Rates for FY 2024-2025 and FY 2025-2026?

Given below are the income tax slab rates for both old and new regimes for FY 2024-2025 and FY 2025-2026:

Under the New Regime for FY 2025-2026, the Income Tax Slab Rates are:

Note: No income tax is applicable for up to Rs. 12 lakhs, as a rebate of Rs. 60,000 applies to the new regime. However, the rebate is not applicable for income taxed under special rates.

The Income Tax Slabs Under the New Regime for FY 2024-2025 are:

Under the New Regime, the Income Tax Slabs Remained Consistent Throughout the years.

Individuals under the age of 60

Resident Individuals aged between 60 and 80 years

Resident individual aged more than 80 years

Surcharge and Education Cess (Central Excise and Service Tax)

When your income exceeds specific limits, you will incur some additional taxes on top of the standard rates. This extra tax primarily affects high-income earners.

The surcharge rates are structured as follows:

• 10% of income tax for total income exceeding Rs. ₹ 50 lakh but less than ₹ 1 crore.
• 15% of income tax for total income exceeding Rs 1 crore but less than Rs 2 crore.
• 25% of income tax for total income exceeding Rs 2 crore but less than Rs 5 crore.
• 37% of income tax for total income exceeding Rs. 5 crore.

Note: Under the new tax regime, the highest surcharge rate of 37% has been reduced to 25%.

Additionally, a health and education cess will be added to your total income tax liability at the rate of 4%. Certain deductions and exemptions are not applicable under the new tax regime.

Calculation of Income Tax on Salary

When computing your income tax, ensure to consider all sources of income, which include:

• Income from Capital Gains
• Income from Salary
• Income from Residential Property
• Income from Business/Profession
• Income from Other Sources

Income Tax Calculation for the Salaried

For Salaried Individuals, the Computation of Income from Salary Includes:

Income from salary = Basic Salary + House Rent Allowance (HRA) + Special Allowance + Transport Allowance + Any other allowance.

Some of your salary components are tax-exempt, such as telephone bill reimbursement and leave travel allowance. If you receive HRA and rent a home, you can claim an exception for HRA. You can use an HRA calculator to check the exempt portion of your HRA.

Additionally, a standard deduction is available: Rs. 50,000 under the old regime and Rs. 75,000 under the new regime.

Example of Income Tax Calculation

To understand tax calculation under both regimes, let's consider Jiya's situation.

She earns a basic salary of Rs. 1 lakh per month, with an HRA of Rs. 50,000, and a special allowance of Rs. 21,000 every month. Jiya also has an annual LTA of Rs. 20,000, and she pays a rent of Rs. 40,000 while living in Delhi.

Jiya has an interest income of Rs. 8,000 from a savings account and a fixed deposit interest income of Rs. 12,000 during the year. To save on income tax, she has also made some investments, including a PPF investment of Rs. 50,000, an ELSS purchase of Rs. 20,000 during the year, and an LIC premium of Rs. 8,000. She paid Rs. 12,000 for medical insurance. Under the old tax regime, Jiya can claim the following deductions:

Computing Gross Taxable Income and Tax Liability in India Under the Old Regime

Calculating Gross Taxable Income and Tax Liability in India Under the New Regime:

Example for Tax Calculation For Slab Rates

Let's consider Mr. Sharma's situation to understand tax calculation for slab rates updated as on the Budget 2025:

Mr. Sharma receives a salary income of Rs. 10,75,000 for FY 2025-2026. The income he receives from other sources is Rs. 2,00,000. Under the new regime, the income tax calculation for Mr. Sharma for the FY 2025-2026 is as follows:

Note:

• Remember that marginal relief on a rebate is still available for the slab rates introduced in Budget 2025.
• Additionally, this rebate of Rs. 60,000 will not apply to income that is taxed under special rates.

What are the Advantages of Using Our Online Income Tax Calculator?

Using SaveTax's online income tax calculator provides you with several benefits, including:

• User-Friendly Interface: Our income tax calculator features a user-friendly interface, making your calculations easy. Just enter the details of your income and deductions, and know your tax liabilities accurately within just a few seconds.
• Accuracy: Do not worry about any errors, as our tool calculates your tax liability with 100% accuracy and eliminates potential errors that can occur when calculating tax liabilities manually.
• Improved Financial Management and Tax Planning: Having an understanding of your tax liability in advance can help you plan your finances effectively. Knowing your potential tax responsibilities can help you manage your budget more effectively and invest in various tax-saving instruments, such as ELSS and PPF, to reduce your tax liability.
• Accessible and Quick: Savetax's online income tax calculator tool calculates your tax liability quickly, within a matter of seconds. No matter where you are or what time it is, you can access our tool easily, anytime, anywhere.

Conclusion

Using our online income tax calculator can help you effectively manage your finances and understand your tax obligations. The tool will simplify every tax calculation, even if you are not familiar with the tax laws. It provides accurate results within just a few seconds, offers convenience, and will stand as a vital part of your financial toolkit. Anyone can access our tool at any time, from anywhere, and obtain accurate tax estimates. Avoid manual calculations and eliminate the risk of potential errors; instead, use our online income tax calculator to get instant and accurate results for free.