How to Use This Income Tax Calculator
This is a professional-grade calculator built to the same standard used by Chartered Accountants. Here is how to use it step by step:
- Select Financial Year — Choose FY 2025-26 (pre-selected on this page) or switch to FY 2024-25 for belated returns.
- Select Assessee Type — Individual, HUF, Partnership Firm, or Domestic Company. Age field appears automatically for Individual under Old Regime.
- Choose Your Regime — New Tax Regime (Budget 2025) or Old Tax Regime. The calculator adjusts slabs, deductions and rebate limits automatically.
- Enter Your Income — Add salary, house property income (use the Details button for NAV calculation), business income (supports 44AD and 44ADA), capital gains across all four categories, and other sources.
- Enter Deductions — Standard Deduction is auto-applied. Add Section 80C, 80D and other deductions if you are on the Old Regime.
- View Your Tax Summary — The dark panel shows your net taxable income, rebate under Section 87A, surcharge, cess and total tax payable — updated instantly.
- Add TDS and Advance Tax (Optional) — Expand the bottom panel to enter TDS deducted, TCS collected and quarterly advance tax paid. The calculator will compute interest under Sections 234A, 234B and 234C and show your final refund or balance payable.
New Tax Regime Slabs — FY 2025-26 (Budget 2025)
The Union Budget 2025 introduced significantly revised slabs under the New Tax Regime, making it more attractive for a wider range of taxpayers. The basic exemption limit has been raised to ₹4,00,000 and the rebate under Section 87A now covers income up to ₹12,00,000.
| Total Income Slab | Tax Rate | Tax on This Slab |
|---|---|---|
| Up to ₹4,00,000 | Nil | ₹0 |
| ₹4,00,001 to ₹8,00,000 | 5% | Up to ₹20,000 |
| ₹8,00,001 to ₹12,00,000 | 10% | Up to ₹40,000 |
| ₹12,00,001 to ₹16,00,000 | 15% | Up to ₹60,000 |
| ₹16,00,001 to ₹20,00,000 | 20% | Up to ₹80,000 |
| ₹20,00,001 to ₹24,00,000 | 25% | Up to ₹1,00,000 |
| Above ₹24,00,000 | 30% | 30% on amount exceeding ₹24L |
Key Benefits under New Regime FY 2025-26:
✅ Standard Deduction of ₹75,000 for salaried individuals and pensioners
✅ Section 87A Rebate of up to ₹60,000 — zero tax for income up to ₹12,00,000
✅ Effective zero tax for salaried individuals earning up to ₹12,75,000 after Standard Deduction
✅ Marginal relief available for income between ₹12,00,000 and ₹12,75,000
Old Tax Regime — Slabs for FY 2025-26
The Old Tax Regime remains unchanged for FY 2025-26. It continues to offer all deductions under Chapter VI-A including Sections 80C, 80D, 80E, HRA exemption and home loan interest under Section 24b. The basic exemption limit varies by age:
| Income Slab | Below 60 Years | Senior (60-79 Yrs) | Super Senior (80+ Yrs) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | — | — |
| Up to ₹3,00,000 | — | Nil | — |
| Up to ₹5,00,000 | — | — | Nil |
| ₹2.5L to ₹5,00,000 | 5% | 5% | — |
| ₹3L to ₹5,00,000 | — | — | — |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
⚠️ Important: Under the Old Regime, Section 87A rebate of ₹12,500 is available only if total income does not exceed ₹5,00,000. The rebate is NOT available against LTCG under Section 112A.
Old vs New Regime — Which is Better for You?
This is the most common question we receive at Taxology. The honest answer is — it depends on your deductions. Here is a practical framework:
✅ Choose New Regime if:
- Your total deductions under 80C, 80D, HRA etc. are less than ₹3.75 lakh
- You are a salaried individual earning up to ₹12.75 lakh — effective zero tax
- You do not have a home loan with significant interest outgo
- You prefer simplicity over tax planning
- You are a new employee or early in your career
✅ Choose Old Regime if:
- You have a home loan with interest above ₹2 lakh per year
- You maximise 80C (₹1.5L), 80D (₹25,000+) and other deductions
- You are a senior citizen with medical expenses
- Your HRA exemption is significant
- You have business losses or carry-forward losses to set off
CA Tip: Use the calculator above to enter your actual income and deductions under both regimes. The difference in tax payable will give you the exact answer for your specific situation — no formula or rule of thumb is as accurate as running the actual numbers.
How Capital Gains Are Taxed in FY 2025-26
Capital gains taxation was significantly revised by Budget 2024, applicable from FY 2024-25 onwards. Here is the updated framework for FY 2025-26:
| Type of Capital Gain | Asset Examples | Holding Period | Tax Rate |
|---|---|---|---|
| Normal STCG (Slab Rate) | Debt funds, unlisted shares, property | Less than 2-3 years | Slab Rate |
| STCG u/s 111A | Listed equity, equity mutual funds | Less than 12 months | 20% |
| Normal LTCG u/s 112 | Unlisted shares, bonds, property | More than specified period | 12.5% (no exemption) |
| LTCG u/s 112A | Listed equity, equity mutual funds | More than 12 months | 12.5% (exempt up to ₹1.25L) |
Capital Loss Set-Off Rules
The calculator automatically applies the correct loss set-off waterfall as per Sections 70 to 74:
- Short Term Capital Loss (STCL) can be set off against any capital gain — Normal STCG first, then STCG 111A, then Normal LTCG, then LTCG 112A
- Long Term Capital Loss (LTCL) can only be set off against long term capital gains — Normal LTCG 112 first, then LTCG 112A
- Unabsorbed capital losses can be carried forward for 8 assessment years
Section 87A Rebate — Who Pays Zero Tax in FY 2025-26?
New Regime
If your total income does not exceed ₹12,00,000, you get a rebate of up to ₹60,000 — effectively making your tax liability zero.
For salaried individuals, the Standard Deduction of ₹75,000 further pushes this limit to ₹12,75,000 gross salary with zero tax.
Note: The rebate applies only against slab tax — NOT against capital gains tax under special rates (STCG 111A, LTCG 112A).
Old Regime
If your total income does not exceed ₹5,00,000, you get a rebate of up to ₹12,500.
The rebate can be applied against slab tax and STCG 111A tax, but strictly not against LTCG u/s 112A as per Section 112A(6).
Marginal relief is available for income slightly above ₹5,00,000 to ensure tax does not exceed the excess income over the limit.
Advance Tax and Interest Under Sections 234A, 234B and 234C
If your tax liability after TDS exceeds ₹10,000, you are required to pay advance tax in four instalments. Failure to do so attracts interest under Sections 234B and 234C.
| Section | What It Covers | Interest Rate | How to Avoid |
|---|---|---|---|
| 234A | Late filing of ITR after due date (31st July) | 1% per month on balance tax | File ITR on or before due date |
| 234B | Advance tax paid is less than 90% of assessed tax | 1% per month from April to filing date | Pay at least 90% of tax as advance tax |
| 234C | Shortfall in quarterly advance tax instalments | 1% per month on shortfall per quarter | Follow the quarterly schedule below |
Advance Tax Payment Schedule
| Due Date | Minimum Cumulative Payment | Relaxed Threshold (No Interest) |
|---|---|---|
| 15th June (Q1) | 15% of assessed tax | No interest if paid ≥ 12% |
| 15th September (Q2) | 45% of assessed tax | No interest if paid ≥ 36% |
| 15th December (Q3) | 75% of assessed tax | No relaxation |
| 15th March (Q4) | 100% of assessed tax | 1% interest for 1 month on shortfall |
⚠️ Important: Section 234C interest does NOT apply if your assessed tax is ₹10,000 or less. Also, interest on capital gains and casual income that arises after the advance tax due date is exempt from 234C — you can pay the full tax in the next instalment without penalty.
Frequently Asked Questions
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