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TAX SLABS

Income Tax Calculator

New regime FY 2025-26 (India)

Quick Answer — Income Tax FY 2025-26

Under the New Tax Regime, income up to ₹12 Lakh (₹12.75L for salaried with standard deduction) is effectively tax-free thanks to Section 87A rebate. Above that, rates are: 5% (3-7L), 10% (7-10L), 15% (10-12L), 20% (12-15L), and 30% (above 15L).

Standard Formula Updated 2026
₹

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Free forever Data stays on your device Works offline (PWA) Verified formulas

Maintained by: Sagar Sahni, Calc Labz  |  Review: formula checks, worked examples, and periodic updates

Use with care: Finance and tax outputs are planning estimates only and should be checked against current rules.

Need a correction? Contact us with the calculator name and the issue you found.

Formula & Worked Example

The math behind the Income Tax Calculator

Mathematical Formula

Tax = \sum_{i=1}^{k} (Slab_i \times Rate_i) - Rebate_{87A} + Surcharge + Cess
New Tax Regime FY 2025-26 slabs: - **0 – ₹3 Lakh**: Nil - **₹3L – ₹7L**: 5% - **₹7L – ₹10L**: 10% - **₹10L – ₹12L**: 15% - **₹12L – ₹15L**: 20% - **Above ₹15L**: 30% - **Standard Deduction**: ₹75,000 (salaried) - **Rebate 87A**: Full rebate if taxable income ≤ ₹12L - **Cess**: 4% Health & Education Cess on total tax

Step-by-Step Worked Example

For a salaried person earning **₹15,00,000** gross: - Taxable Income = 15,00,000 − 75,000 (Std Ded) = **₹14,25,000** - Tax on 0–3L = ₹0, 3–7L = ₹20,000, 7–10L = ₹30,000, 10–12L = ₹30,000, 12–14.25L = ₹45,000 - Total Tax = ₹1,25,000 + 4% Cess = **₹1,30,000**

Frequently Asked Questions

Common questions about the Income Tax Calculator

What is the income tax exemption limit for FY 2025-26?
Under the New Tax Regime, income up to ₹12 Lakh is effectively tax-free due to Section 87A rebate. For salaried individuals, the limit extends to ₹12.75 Lakh (₹12L + ₹75K standard deduction). Under the Old Regime, the basic exemption is ₹2.5 Lakh.
What is the standard deduction for salaried employees?
The standard deduction under the New Tax Regime is ₹75,000 per year (increased from ₹50,000 in Budget 2024). Under the Old Regime, it remains at ₹50,000. This is a flat deduction — no proof of expenses needed.
How is surcharge calculated on income tax?
Surcharge is an additional tax on tax: 10% surcharge for income ₹50L-₹1Cr, 15% for ₹1-2Cr, 25% for ₹2-5Cr (capped at 25% in new regime). The 4% Health & Education Cess is calculated on Tax + Surcharge.
Do I need to file ITR if my income is below the taxable limit?
Filing is mandatory if: gross income exceeds ₹3 Lakh (new regime basic exemption), you have TDS deducted and want a refund, you have foreign assets, or your bank deposits exceed ₹1 Crore. Even if not mandatory, filing is recommended for loan applications and visa purposes.
What deductions are available under the New Tax Regime?
The New Regime offers limited deductions: Standard deduction (₹75K for salaried), NPS employer contribution (80CCD(2)), Agniveer contribution (80CCH). Most deductions like 80C, 80D, HRA, and home loan interest are NOT available under the New Regime.

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What is the Income Tax Calculator?

The Income Tax Calculator computes your tax liability under the New Tax Regime for FY 2025-26 (AY 2026-27) as per the latest Union Budget. It factors in the standard deduction, rebate under Section 87A, surcharge, and health & education cess. Get an instant breakdown of your tax slab-wise computation.

How to Use the Income Tax Calculator

  1. Enter Annual Income: Enter your annual income in Indian Rupees (₹) in the input field. The calculator will validate your input automatically.
  2. View Your Results: The Income Tax Calculator displays your results instantly in the output panel. You will see the primary result along with a detailed breakdown of secondary outputs. Scroll down for charts, interpretations, and expert advice.

Key Features

  • Instant Income Tax calculations with real-time updates
  • No signup, no registration — 100% free forever
  • All calculations happen in your browser — zero data sent to servers
  • Works offline as a Progressive Web App (PWA)
  • Mobile-friendly responsive design
  • Verified financial formulas updated for 2026

Why Use Calc Labz Income Tax Calculator?

The Calc Labz Income Tax Calculator stands out because it combines accuracy with simplicity. Unlike other online calculators, we provide detailed breakdowns, step-by-step formulas, and actionable advice alongside your results. Our financial calculators are regularly updated to reflect current rates, rules, and standards for India (2026). Whether you are a student, professional, or just need a quick calculation — Calc Labz delivers reliable results instantly.

Key Terms & Glossary

Principal
The original amount of money borrowed or invested, before any interest is applied.
Interest Rate
The percentage charged on borrowed money or earned on invested money, usually expressed per annum.
Compound Interest
Interest calculated on both the initial principal and previously accumulated interest — "interest on interest."
Amortization
The process of spreading loan repayment into equal installments over a fixed period.
Maturity
The date on which a financial instrument (FD, bond, PPF) reaches its full term and the principal is returned.
CAGR
Compound Annual Growth Rate — the smoothed annual rate of return on an investment over a specified period.

Sources & References

Our Income Tax Calculator uses formulas and guidelines from the following authoritative sources:

  • Income Tax Department — Tax Slabs
  • Union Budget 2024 — Finance Bill