How to Use the Income Tax Calculator
Enter your annual income and select your age group. The calculator shows tax under both new and old regimes side by side. For the old regime, optionally enter deductions (80C, 80D, HRA, home loan interest). The recommended regime is highlighted.
Income Tax Calculator Formula
Tax = slab_rate × (income − slab_start) + tax_on_lower_slabs; Cess = Tax × 4%New regime= 0–4L:0%, 4–8L:5%, 8–12L:10%, 12–16L:15%, 16–20L:20%, 20–24L:25%, >24L:30%Old regime= 0–2.5L:0%, 2.5–5L:5%, 5–10L:20%, >10L:30%87A rebate= Zero tax if total income ≤ ₹12L (new) or ≤ ₹7L (old)
Example Calculation
Annual income ₹15 lakh, new regime:
4L@0% + 4L@5% + 4L@10% + 3L@15% = 0 + 20,000 + 40,000 + 45,000 = ₹1,05,000; Cess = ₹4,200
Total tax = ₹1,09,200; Effective rate ≈ 7.3%; Monthly TDS ≈ ₹9,100
Frequently Asked Questions
What is the zero tax income limit under the new regime in FY 2025-26?
Under the new tax regime (IT Act 2025), individuals with total income up to ₹12 lakh pay zero income tax due to the enhanced rebate under Section 87A of ₹60,000.
Which is better — new or old tax regime?
The new regime is better if your deductions (80C, HRA, home loan interest, etc.) are less than approximately ₹3.75 lakh. If you have higher deductions, the old regime saves more tax.
Is standard deduction available in the new tax regime?
Yes. A standard deduction of ₹75,000 is available for salaried employees under the new regime from FY 2024-25 onwards.