Income Tax Calculator India – Free Online Tax Calculator FY 2026-27

Income Tax Calculator India – Free Online Tax Calculator

Quickly compute your income tax under Old & New Regime. Get tax estimates, compare regimes, and plan your savings with India's most trusted tax tool.

✓ Salary Tax ✓ Business Income ✓ Freelancer ✓ New Regime ✓ Old Regime

Income Tax Calculator India – FY 2026-27

Enter Your Income Details

Taxable Income: ₹6,50,000
Income Tax: ₹25,000
Cess (4%): ₹1,000
Total Tax: ₹26,000
Effective Tax Rate: 3.25%

Quick Tax Slabs (New Regime)

  • ₹0 – ₹3,00,000: NIL
  • ₹3,00,001 – ₹7,00,000: 5%
  • ₹7,00,001 – ₹10,00,000: 10%
  • ₹10,00,001 – ₹12,00,000: 15%
  • ₹12,00,001 – ₹15,00,000: 20%
  • Above ₹15,00,000: 30%

* Rebate under 87A up to ₹5 lakh taxable income.

Old regime slabs available in tables below.


What is Taxable Income? Your total income minus deductions. This is the amount on which tax is calculated.

What is Cess? Health & Education Cess is 4% of your income tax. It funds government welfare programs.

Effective Tax Rate = (Total Tax / Total Income) × 100. It shows your average tax burden.

What is Income Tax?

Income Tax is a direct tax levied by the Government of India on the income of individuals, Hindu Undivided Families (HUFs), companies, and other entities. It is the primary source of revenue for the government and is used for public welfare, infrastructure, defense, and development.

Purpose of Income Tax

  • Fund government schemes and public services.
  • Reduce income inequality through progressive taxation.
  • Encourage savings and investments via deductions.

Who Pays Income Tax?

Every individual or entity with taxable income above the basic exemption limit (₹3,00,000 under new regime, ₹2,50,000 under old regime for general category) must pay income tax. Senior citizens and super senior citizens have higher exemption limits.

How Income Tax Works in India

Income tax is computed on the total income earned during a financial year (April 1 to March 31). The total income is classified into five heads: Salary, House Property, Business/Profession, Capital Gains, and Other Sources. After deductions and exemptions, the taxable income is calculated and taxed according to the applicable slabs.

  • Residents are taxed on global income; NRIs on Indian-sourced income.
  • Tax is paid through TDS (Tax Deducted at Source), advance tax, or self-assessment.

Income Tax Slabs in India (FY 2026-27)

New Tax Regime (Default)

Income Range (₹)Tax Rate
0 – 3,00,000NIL
3,00,001 – 7,00,0005%
7,00,001 – 10,00,00010%
10,00,001 – 12,00,00015%
12,00,001 – 15,00,00020%
Above 15,00,00030%

Rebate under Section 87A: Tax liability NIL if taxable income ≤ ₹5,00,000.

Old Tax Regime

Income Range (₹)Tax Rate
0 – 2,50,000NIL
2,50,001 – 5,00,0005%
5,00,001 – 10,00,00020%
Above 10,00,00030%

Rebate under 87A: NIL tax if taxable income ≤ ₹5,00,000 (old regime).

Income Tax Calculation Formula

Taxable Income = Total Income (Salary + Business + Other) – Deductions (80C, 80D, etc.)

Then apply the slab rates. Total Tax = Income Tax + Health & Education Cess (4% of Income Tax).

For example: Taxable income ₹8,00,000 under new regime: 5% on ₹4,00,000 (3-7L) = ₹20,000; 10% on ₹1,00,000 (7-8L) = ₹10,000; total tax ₹30,000; cess 4% = ₹1,200; total ₹31,200.

How to Use the Income Tax Calculator

  1. Enter your total annual salary, business, and other income.
  2. Select the tax regime (New or Old).
  3. Enter total deductions under sections like 80C, 80D, etc.
  4. Click 'Calculate Income Tax' to see your taxable income, tax, cess, and effective rate.
  5. Compare both regimes by switching the dropdown.

Old vs New Tax Regime – Comparison

FeatureOld RegimeNew Regime
Basic Exemption₹2,50,000 (₹3,00,000 for senior citizens)₹3,00,000
Deductions (80C, 80D, HRA, etc.)AvailableNot allowed (except 80CCD(2) & employer NPS)
Tax RatesHigher (up to 30%)Lower (max 30% but with wider slabs)
Best forTaxpayers with high deductionsTaxpayers with low deductions

Who should choose which? Use our calculator to compare. Generally, if your deductions exceed ₹3-4 lakh, the old regime may be better.

Tax Saving Deductions – Section 80C, 80D & More

  • Section 80C: Up to ₹1.5 lakh (PPF, ELSS, EPF, Life Insurance, NSC, etc.)
  • Section 80D: Health insurance premium (₹25,000, ₹50,000 for senior citizens)
  • Section 80CCD(1B): Additional NPS contribution up to ₹50,000
  • Section 24(b): Home loan interest up to ₹2 lakh
  • Section 80E: Education loan interest (no limit)
  • HRA: House Rent Allowance exemption (if renting)
  • LTA: Leave Travel Allowance (domestic travel)
  • NPS (80CCD(2)): Employer contribution up to 10% of salary
  • ELSS: Tax-saving mutual funds (lock-in 3 years)
  • PPF: Public Provident Fund (15-year lock-in)
  • EPF: Employee Provident Fund (employee contribution)
  • Sukanya Samriddhi: Savings for girl child
  • Senior Citizen: Additional deduction under 80D and 80TTB

Income Tax Examples – 30 Scenarios

Understanding the columns: Each row shows a typical income profile. Taxable Income is what remains after deductions. Tax (New Regime) and Tax (Old Regime) show the tax liability under each regime. Compare to see which regime saves you more tax.

Income ProfileTaxable IncomeTax (New Regime)Tax (Old Regime)
Salary ₹3 Lakh3,00,000NIL (Rebate)NIL
Salary ₹5 Lakh5,00,000NIL (Rebate)₹12,500
Salary ₹7 Lakh7,00,000₹20,000₹42,500
Salary ₹10 Lakh10,00,000₹50,000₹1,12,500
Salary ₹15 Lakh15,00,000₹1,25,000₹2,62,500
Salary ₹20 Lakh20,00,000₹2,50,000₹4,62,500
Salary ₹30 Lakh30,00,000₹4,50,000₹7,62,500
Freelancer ₹8 Lakh8,00,000₹30,000₹72,500
Business ₹12 Lakh12,00,000₹80,000₹1,62,500
Consultant ₹18 Lakh18,00,000₹2,00,000₹3,62,500
Startup Founder ₹25 Lakh25,00,000₹3,50,000₹6,12,500
Agency Owner ₹22 Lakh22,00,000₹2,90,000₹5,12,500
Rental Income ₹6 Lakh6,00,000₹15,000₹32,500
Capital Gains ₹10 Lakh10,00,000₹50,000₹1,12,500
Mixed Income ₹14 Lakh14,00,000₹1,10,000₹2,37,500
Salary ₹6 Lakh + Deductions4,50,000₹7,500NIL
Salary ₹9 Lakh + HRA7,50,000₹25,000₹62,500
Business ₹11 Lakh + 80C9,50,000₹40,000₹1,02,500
Freelancer ₹16 Lakh + 80D15,75,000₹1,45,000₹2,92,500
Senior Citizen ₹8 Lakh8,00,000₹30,000₹52,500
NRI Income ₹20 Lakh20,00,000₹2,50,000₹4,62,500
Salary ₹4.5 Lakh4,50,000NIL₹10,000
Salary ₹5.5 Lakh5,50,000₹12,500₹25,000
Salary ₹8.5 Lakh8,50,000₹35,000₹82,500
Salary ₹11 Lakh11,00,000₹65,000₹1,42,500
Business ₹13 Lakh13,00,000₹95,000₹1,87,500
Consultant ₹19 Lakh19,00,000₹2,25,000₹3,92,500
Startup ₹28 Lakh28,00,000₹4,10,000₹7,12,500
Rental ₹7 Lakh7,00,000₹20,000₹42,500
Mixed ₹16 Lakh16,00,000₹1,60,000₹3,12,500

Tax Planning Guide – Short & Long Term

Short-term Planning

  • Maximize 80C investments (PPF, ELSS, etc.)
  • Claim HRA and LTA exemptions
  • Utilize Section 80D for health insurance

Long-term Planning

  • NPS for retirement corpus and extra deduction
  • Home loan for tax benefits and asset creation
  • Invest in tax-saving FDs and bonds

Income Tax for Different Individuals

  • Salaried Employees: TDS deducted by employer, can claim deductions.
  • Freelancers: File ITR-3, pay advance tax if tax > ₹10,000.
  • Business Owners: Maintain books, claim business expenses, file ITR-3/4.
  • Startups: Eligible for tax holiday under Section 80-IAC.
  • Senior Citizens: Higher exemption limit, additional deductions.
  • NRIs: Tax on Indian income; DTAA benefits.

Benefits of Using an Income Tax Calculator

  • Instant tax estimation
  • Compare old vs new regime
  • Plan tax savings effectively
  • No manual errors
  • Free and accessible 24/7
  • Understand tax liability before filing
  • Helps in financial planning
  • Mobile-friendly
  • No registration required
  • Updated with latest slabs
  • Useful for salaried and self-employed
  • Helps avoid tax surprises
  • Improves tax literacy
  • Supports multiple income sources
  • Quick what-if analysis
  • Great for CA consultations
  • Budget planning tool
  • Transparency in tax computation
  • Encourages tax compliance
  • Saves time and money

Common Income Tax Mistakes & Solutions

  • Mistake: Missing deduction deadlines → Solution: Invest by March 31.
  • Mistake: Not reporting all income → Solution: Include interest, capital gains.
  • Mistake: Wrong ITR form → Solution: Use correct form (ITR-1 to ITR-7).
  • Mistake: Not verifying ITR → Solution: E-verify within 30 days.
  • Mistake: Claiming ineligible deductions → Solution: Check eligibility.
  • Mistake: Ignoring tax on gifts → Solution: Report gifts > ₹50,000.
  • Mistake: Not paying advance tax → Solution: Pay if tax > ₹10,000.
  • Mistake: Overlooking HRA exemption → Solution: Submit rent receipts.
  • Mistake: Missing 80D on parents → Solution: Claim for senior citizen parents.
  • Mistake: Not claiming TDS credit → Solution: Verify Form 26AS.
  • Mistake: Filing late → Solution: File before July 31.
  • Mistake: Incorrect bank details → Solution: Validate before filing.
  • Mistake: Not reporting foreign assets → Solution: Disclose in Schedule FA.
  • Mistake: Ignoring 80G donations → Solution: Claim 50% or 100% deduction.
  • Mistake: Not maintaining records → Solution: Keep documents for 8 years.
  • Mistake: Missing Section 24(b) interest → Solution: Claim home loan interest.
  • Mistake: Wrong regime selection → Solution: Use calculator to compare.
  • Mistake: Not filing revised return → Solution: File revised if error found.
  • Mistake: Overlooking 87A rebate → Solution: Check eligibility.
  • Mistake: Not e-verifying → Solution: E-verify via net banking or Aadhaar.

Income Tax Return (ITR) Guide

ITR is a form used to file your income tax details. There are 7 types: ITR-1 (Sahaj) for salary/pension, ITR-2 for capital gains, ITR-3 for business/profession, ITR-4 (Sugam) for presumptive income, and ITR-5 to 7 for others.

Filing Process

  1. Gather documents (Form 16, 26AS, investment proofs).
  2. Select correct ITR form.
  3. Fill online on Income Tax portal.
  4. Verify and e-verify.

Required Documents

  • PAN card, Aadhaar
  • Form 16 (for salaried)
  • Bank statements
  • Investment proofs
  • Home loan interest certificate

Income Tax Filing Checklist

  • ✓ PAN and Aadhaar linked
  • ✓ Form 16 collected
  • ✓ 26AS reconciled
  • ✓ Investment proofs ready
  • ✓ Bank account details correct
  • ✓ Choose correct regime
  • ✓ Check rebate eligibility
  • ✓ E-verify after filing

25+ Tax Saving Tips

  • 1. Invest up to ₹1.5L in 80C (ELSS, PPF).
  • 2. Claim HRA exemption with rent receipts.
  • 3. Buy health insurance for family and parents.
  • 4. Contribute to NPS for extra ₹50,000 deduction.
  • 5. Take home loan for tax benefits.
  • 6. Claim education loan interest.
  • 7. Donate to eligible charities (80G).
  • 8. Use LTA exemption for travel.
  • 9. Invest in tax-saving FDs.
  • 10. Choose the right tax regime.
  • 11. Report all income sources.
  • 12. Claim deduction for disability (80U).
  • 13. Save tax on capital gains via 54EC bonds.
  • 14. Use Section 80TTA for savings interest.
  • 15. Claim deduction for medical treatment (80DDB).
  • 16. Invest in Sukanya Samriddhi.
  • 17. Opt for NPS Tier 1.
  • 18. Claim deduction for employer NPS contribution.
  • 19. Maintain proper records for business expenses.
  • 20. File returns before due date.
  • 21. Choose presumptive taxation for small business.
  • 22. Claim deduction for interest on savings account.
  • 23. Invest in National Savings Certificate.
  • 24. Use Section 80CCC for pension funds.
  • 25. Plan investments early in the year.

Frequently Asked Questions (75+ FAQs)

1. What is the new tax regime?

Introduced in 2020, it offers lower tax rates but fewer deductions. It's the default regime from FY 2023-24.

2. Which regime is better?

Depends on your deductions. Use our calculator to compare.

3. What is Section 80C?

Deduction up to ₹1.5 lakh for investments like PPF, ELSS, life insurance.

4. Who gets rebate under 87A?

Resident individuals with taxable income up to ₹5 lakh.

5. What is the income tax slab for FY 2026-27?

New regime: 0-3L nil, 3-7L 5%, 7-10L 10%, 10-12L 15%, 12-15L 20%, >15L 30%.

6. What is cess?

Health & Education Cess at 4% on income tax.

7. What is HRA exemption?

House Rent Allowance exemption based on rent paid, salary, and location.

8. Can I claim 80C and 80D together?

Yes, both are separate deductions.

9. What is the limit for 80D?

₹25,000 for self/family, ₹50,000 for senior citizen parents.

10. What is NPS deduction?

80CCD(1B) allows additional ₹50,000 over 80C.

11. What is LTA?

Leave Travel Allowance exemption for domestic travel.

12. What is the basic exemption limit?

₹3,00,000 under new regime, ₹2,50,000 under old regime.

13. Who is a senior citizen?

Age 60-80 years, higher exemption limit.

14. What is super senior citizen?

Age 80+, no tax up to ₹5 lakh.

15. What is capital gains tax?

Tax on profits from sale of assets (short-term & long-term).

16. What is TDS?

Tax Deducted at Source by the payer.

17. What is Form 16?

Certificate of TDS on salary.

18. What is Form 26AS?

Annual tax statement showing TDS/TCS.

19. How to file ITR?

Online via Income Tax e-filing portal.

20. What is ITR-1?

For individuals with income from salary, pension, and interest.

21. What is ITR-2?

For income from capital gains, multiple house properties.

22. What is ITR-3?

For business/profession income.

23. What is ITR-4?

For presumptive business income (Section 44AD, 44ADA).

24. What is advance tax?

Tax paid in installments if liability exceeds ₹10,000.

25. What is the due date for ITR?

July 31 for non-audit cases, October 31 for audit cases.

26. Can I revise ITR?

Yes, if you discover errors, file revised return.

27. What is penalty for late filing?

Late fee up to ₹10,000 under Section 234F.

28. What is interest for delay?

Section 234A, 234B, 234C for delayed payment.

29. What is Section 80G?

Deduction for donations to approved funds.

30. What is Section 80TTA?

Deduction up to ₹10,000 on savings interest.

31. What is Section 24(b)?

Home loan interest deduction up to ₹2 lakh.

32. What is Section 80E?

Education loan interest deduction (no limit).

33. What is Section 80U?

Deduction for persons with disability (₹75,000 – ₹1,25,000).

34. What is Section 80CCD(2)?

Employer's NPS contribution deduction.

35. What is Section 80DD?

Deduction for dependent with disability.

36. What is Section 80DDB?

Medical treatment for specified diseases.

37. What is STCG?

Short-term capital gains tax.

38. What is LTCG?

Long-term capital gains tax.

39. What is indexation?

Adjusting cost of acquisition for inflation.

40. What is presumptive taxation?

For small businesses, deemed income at 6% or 8% of turnover.

41. What is NRI tax?

Non-residents taxed on Indian-sourced income.

42. What is DTAA?

Double Tax Avoidance Agreement to avoid double taxation.

43. What is Tax File Number?

PAN is the primary identifier for tax.

44. What is Aadhaar-PAN linking?

Mandatory to file ITR.

45. What is e-verification?

Verifying ITR online via OTP, net banking, or Aadhaar.

46. What is Income Tax Department?

Government body that administers tax laws.

47. What is Assessment Year?

Year following the financial year (e.g., AY 2027-28 for FY 2026-27).

48. What is Previous Year?

Financial year in which income is earned.

49. What is taxable income?

Total income minus deductions and exemptions.

50. What is rebate?

Reduction in tax liability (Section 87A).

51. What is marginal relief?

Protection from excessive tax when income just exceeds rebate limit.

52. What is surcharge?

Additional tax on high-income individuals (above ₹50 lakh).

53. What is tax audit?

Mandatory audit for businesses with turnover above ₹1 crore.

54. What is Form 3CD?

Audit report under tax audit.

55. What is Form 10E?

For claiming relief on arrears of salary.

56. What is Form 15G/H?

Self-declaration for no TDS on interest.

57. What is e-payment?

Online payment of taxes via net banking.

58. What is challan?

Tax payment receipt.

59. What is CIB?

Centralized Processing Center for ITRs.

60. What is intimation?

Notice from CPC after processing ITR.

61. What is scrutiny?

Detailed examination of ITR by tax officer.

62. What is appeal?

Challenge to tax assessment order.

63. What is ITAT?

Income Tax Appellate Tribunal.

64. What is advance ruling?

Binding decision on tax matters.

65. What is deemed income?

Income presumed by law (e.g., perquisites).

66. What is perquisite?

Benefit provided by employer (rent-free house, car).

67. What is allowance?

Fixed amount given for expenses (DA, HRA).

68. What is exemption?

Income not subject to tax (agricultural income).

69. What is deduction?

Amount subtracted from gross income.

70. What is TCS?

Tax Collected at Source (e.g., on sale of scrap).

71. What is MAT?

Minimum Alternate Tax for companies.

72. What is AMT?

Alternate Minimum Tax for non-corporate.

73. What is tax holiday?

Tax exemption for startups (Section 80-IAC).

74. What is DT?

Double Taxation – avoided by DTAA.

75. What is tax saving?

Legal reduction of tax liability using deductions and exemptions.

76. Is agricultural income taxable?

Exempt from tax under Section 10(1).

77. What is the tax on gifts?

Gifts > ₹50,000 taxable as income.

78. What is the new tax regime for FY 2026-27?

Same as above, default regime.

Income Tax Glossary (100+ Terms)

Income Tax – Tax on income
PAN – Permanent Account Number
TDS – Tax Deducted at Source
TCS – Tax Collected at Source
ITR – Income Tax Return
AY – Assessment Year
FY – Financial Year
Form 16 – TDS certificate for salary
Form 26AS – Annual tax statement
80C – Deduction for investments
80D – Health insurance deduction
80G – Donation deduction
80TTA – Savings interest deduction
24(b) – Home loan interest
HRA – House Rent Allowance
LTA – Leave Travel Allowance
NPS – National Pension System
PPF – Public Provident Fund
ELSS – Equity Linked Savings Scheme
EPF – Employees' Provident Fund
NSC – National Savings Certificate
Sukanya Samriddhi – Girl child savings scheme
Rebate – Tax reduction (87A)
Cess – Health & Education Cess (4%)
Surcharge – Additional tax on high income
Capital Gains – Profit from asset sale
STCG – Short-term capital gains
LTCG – Long-term capital gains
Indexation – Inflation adjustment
Presumptive Taxation – Deemed income scheme
Advance Tax – Tax paid in installments
Self-assessment – Tax computed and paid by taxpayer
Tax Audit – Audit under Section 44AB
Form 3CD – Audit report form
ITAT – Income Tax Appellate Tribunal
CPC – Centralized Processing Center
Intimation – Notice after ITR processing
Scrutiny – Detailed assessment
Appeal – Challenge to order
MAT – Minimum Alternate Tax
AMT – Alternate Minimum Tax
DTAA – Double Tax Avoidance Agreement
NRI – Non-Resident Indian
Resident – Tax resident of India
Senior Citizen – Age 60+
Super Senior – Age 80+
Perquisite – Fringe benefit
Allowance – Fixed monetary benefit
Exemption – Income not taxed
Deduction – Amount subtracted from income
Tax Holiday – Tax exemption period
Startup – Eligible for tax benefits
80-IAC – Startup tax holiday
80CCD(1) – NPS contribution deduction
80CCD(1B) – Additional NPS deduction
80CCD(2) – Employer NPS contribution
80DD – Disabled dependent deduction
80DDB – Medical treatment deduction
80U – Person with disability
80E – Education loan interest
10(1) – Agricultural income exemption
10(5) – Leave travel concession
10(10) – Gratuity exemption
10(10A) – Commuted pension
10(10D) – Life insurance maturity
10(11) – PPF maturity
10(12) – Accumulated NPS
10(13A) – HRA exemption
10(14) – Special allowances
10(15) – Interest on certain bonds
10(34) – Dividend income exemption
10(35) – Mutual fund income
10(37) – Capital gains on land acquisition
10(38) – LTCG on equity (abolished)
10(46) – Income of certain institutions
10A – Export income exemption
10AA – SEZ unit exemption
10B – 100% export-oriented units
10BA – Film production exemption
10BB – Hospital income exemption
10C – Voluntary retirement compensation
10D – Life insurance policy
10E – Relief on arrears of salary
11 – Income from property held for charity
12A – Registration of trusts
12AA – Approval of charitable trusts
12AB – Fresh registration process
13 – Applicability to trusts
14A – Disallowance of exempt income expenses
15A – Advance tax for companies
15B – Advance tax for individuals
15C – Interest on refund
15D – Interest on delayed payment
15E – Interest on excess refund
15F – Tax on income of non-residents
15G – Self-declaration for no TDS
15H – Declaration for senior citizens
16 – TDS certificate
17 – Salary perquisites
18 – Pension rules
19 – Tax on superannuation
20 – Income from business

Conclusion

Income Tax Calculator India is your comprehensive, free, and reliable tool for estimating your income tax liability. Whether you are a salaried employee, freelancer, business owner, or startup founder, understanding your tax obligations and planning ahead can save you money and stress. Use our calculator to compare regimes, explore deductions, and make informed financial decisions. Stay compliant, save taxes, and achieve your financial goals.

Start your tax planning today with India's most trusted online tax calculator.