Income Tax Calculator (India)

Taxable income = gross income − standard deduction (₹75,000 new / ₹50,000 old for salaried and pensioners) − eligible deductions. The old regime allows Section 80C up to ₹1,50,000 (EPF, PPF, ELSS, LIC premiums, tuition fees, home loan principal, 5-yr tax-saver FD), an additional ₹50,000 under 80CCD(1B) for NPS Tier-1 self-contribution (total retirement-savings deduction up to ₹2,00,000), Section 80D up to ₹1,00,000 for health insurance - ₹25,000 for self and family (₹50,000 if 60+) plus ₹25,000 for parents (₹50,000 if 60+), including a ₹5,000 preventive check-up - and Section 24(b) up to ₹2,00,000 for home loan interest on self-occupied property (let-out property has no cap, but loss set-off is limited to ₹2L).

Salary exemptions in the old regime also include HRA, LTA and professional tax. HRA exemption is the minimum of (a) HRA received, (b) 50% of salary for metro cities or 40% for non-metro, and (c) rent paid minus 10% of salary. For this rule, salary generally means basic pay plus qualifying DA and turnover-based commission - the calculator expects the already-computed exempt amount. LTA for domestic travel is exempt up to the actual cost by the shortest route, claimable twice in a 4-year calendar-year block (2022-25 for 2025 travel; 2026-29 from January 1, 2026, with limited carry-forward). Professional tax is capped at ₹2,500 per year under Article 276(2). The new regime allows only the standard deduction and employer NPS contribution u/s 80CCD(2).

Rebate u/s 87A makes tax zero when taxable income is within ₹12,00,000 (new regime) or ₹5,00,000 (old regime). Above the new regime threshold, marginal relief caps the tax at the excess amount so a small rise in income cannot create a larger tax liability.

Surcharge applies on income above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25% in both regimes), and ₹5 crore (37% in the old regime only; the new regime remains capped at 25%). A 4% health and education cess is added on tax + surcharge.

This calculator does not currently model senior citizen slabs, capital gains, business income, or surcharge marginal relief at each threshold. For salaried taxpayers the estimate matches the tax payable on salary income.