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.
Income Tax Calculator India – FY 2026-27
Enter Your Income Details
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 – 3,00,000 | 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 Section 87A: Tax liability NIL if taxable income ≤ ₹5,00,000.
Old Tax Regime
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | NIL |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
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
- Enter your total annual salary, business, and other income.
- Select the tax regime (New or Old).
- Enter total deductions under sections like 80C, 80D, etc.
- Click 'Calculate Income Tax' to see your taxable income, tax, cess, and effective rate.
- Compare both regimes by switching the dropdown.
Old vs New Tax Regime – Comparison
| Feature | Old Regime | New Regime |
|---|---|---|
| Basic Exemption | ₹2,50,000 (₹3,00,000 for senior citizens) | ₹3,00,000 |
| Deductions (80C, 80D, HRA, etc.) | Available | Not allowed (except 80CCD(2) & employer NPS) |
| Tax Rates | Higher (up to 30%) | Lower (max 30% but with wider slabs) |
| Best for | Taxpayers with high deductions | Taxpayers 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 Profile | Taxable Income | Tax (New Regime) | Tax (Old Regime) |
|---|---|---|---|
| Salary ₹3 Lakh | 3,00,000 | NIL (Rebate) | NIL |
| Salary ₹5 Lakh | 5,00,000 | NIL (Rebate) | ₹12,500 |
| Salary ₹7 Lakh | 7,00,000 | ₹20,000 | ₹42,500 |
| Salary ₹10 Lakh | 10,00,000 | ₹50,000 | ₹1,12,500 |
| Salary ₹15 Lakh | 15,00,000 | ₹1,25,000 | ₹2,62,500 |
| Salary ₹20 Lakh | 20,00,000 | ₹2,50,000 | ₹4,62,500 |
| Salary ₹30 Lakh | 30,00,000 | ₹4,50,000 | ₹7,62,500 |
| Freelancer ₹8 Lakh | 8,00,000 | ₹30,000 | ₹72,500 |
| Business ₹12 Lakh | 12,00,000 | ₹80,000 | ₹1,62,500 |
| Consultant ₹18 Lakh | 18,00,000 | ₹2,00,000 | ₹3,62,500 |
| Startup Founder ₹25 Lakh | 25,00,000 | ₹3,50,000 | ₹6,12,500 |
| Agency Owner ₹22 Lakh | 22,00,000 | ₹2,90,000 | ₹5,12,500 |
| Rental Income ₹6 Lakh | 6,00,000 | ₹15,000 | ₹32,500 |
| Capital Gains ₹10 Lakh | 10,00,000 | ₹50,000 | ₹1,12,500 |
| Mixed Income ₹14 Lakh | 14,00,000 | ₹1,10,000 | ₹2,37,500 |
| Salary ₹6 Lakh + Deductions | 4,50,000 | ₹7,500 | NIL |
| Salary ₹9 Lakh + HRA | 7,50,000 | ₹25,000 | ₹62,500 |
| Business ₹11 Lakh + 80C | 9,50,000 | ₹40,000 | ₹1,02,500 |
| Freelancer ₹16 Lakh + 80D | 15,75,000 | ₹1,45,000 | ₹2,92,500 |
| Senior Citizen ₹8 Lakh | 8,00,000 | ₹30,000 | ₹52,500 |
| NRI Income ₹20 Lakh | 20,00,000 | ₹2,50,000 | ₹4,62,500 |
| Salary ₹4.5 Lakh | 4,50,000 | NIL | ₹10,000 |
| Salary ₹5.5 Lakh | 5,50,000 | ₹12,500 | ₹25,000 |
| Salary ₹8.5 Lakh | 8,50,000 | ₹35,000 | ₹82,500 |
| Salary ₹11 Lakh | 11,00,000 | ₹65,000 | ₹1,42,500 |
| Business ₹13 Lakh | 13,00,000 | ₹95,000 | ₹1,87,500 |
| Consultant ₹19 Lakh | 19,00,000 | ₹2,25,000 | ₹3,92,500 |
| Startup ₹28 Lakh | 28,00,000 | ₹4,10,000 | ₹7,12,500 |
| Rental ₹7 Lakh | 7,00,000 | ₹20,000 | ₹42,500 |
| Mixed ₹16 Lakh | 16,00,000 | ₹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
- Gather documents (Form 16, 26AS, investment proofs).
- Select correct ITR form.
- Fill online on Income Tax portal.
- 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)
Introduced in 2020, it offers lower tax rates but fewer deductions. It's the default regime from FY 2023-24.
Depends on your deductions. Use our calculator to compare.
Deduction up to ₹1.5 lakh for investments like PPF, ELSS, life insurance.
Resident individuals with taxable income up to ₹5 lakh.
New regime: 0-3L nil, 3-7L 5%, 7-10L 10%, 10-12L 15%, 12-15L 20%, >15L 30%.
Health & Education Cess at 4% on income tax.
House Rent Allowance exemption based on rent paid, salary, and location.
Yes, both are separate deductions.
₹25,000 for self/family, ₹50,000 for senior citizen parents.
80CCD(1B) allows additional ₹50,000 over 80C.
Leave Travel Allowance exemption for domestic travel.
₹3,00,000 under new regime, ₹2,50,000 under old regime.
Age 60-80 years, higher exemption limit.
Age 80+, no tax up to ₹5 lakh.
Tax on profits from sale of assets (short-term & long-term).
Tax Deducted at Source by the payer.
Certificate of TDS on salary.
Annual tax statement showing TDS/TCS.
Online via Income Tax e-filing portal.
For individuals with income from salary, pension, and interest.
For income from capital gains, multiple house properties.
For business/profession income.
For presumptive business income (Section 44AD, 44ADA).
Tax paid in installments if liability exceeds ₹10,000.
July 31 for non-audit cases, October 31 for audit cases.
Yes, if you discover errors, file revised return.
Late fee up to ₹10,000 under Section 234F.
Section 234A, 234B, 234C for delayed payment.
Deduction for donations to approved funds.
Deduction up to ₹10,000 on savings interest.
Home loan interest deduction up to ₹2 lakh.
Education loan interest deduction (no limit).
Deduction for persons with disability (₹75,000 – ₹1,25,000).
Employer's NPS contribution deduction.
Deduction for dependent with disability.
Medical treatment for specified diseases.
Short-term capital gains tax.
Long-term capital gains tax.
Adjusting cost of acquisition for inflation.
For small businesses, deemed income at 6% or 8% of turnover.
Non-residents taxed on Indian-sourced income.
Double Tax Avoidance Agreement to avoid double taxation.
PAN is the primary identifier for tax.
Mandatory to file ITR.
Verifying ITR online via OTP, net banking, or Aadhaar.
Government body that administers tax laws.
Year following the financial year (e.g., AY 2027-28 for FY 2026-27).
Financial year in which income is earned.
Total income minus deductions and exemptions.
Reduction in tax liability (Section 87A).
Protection from excessive tax when income just exceeds rebate limit.
Additional tax on high-income individuals (above ₹50 lakh).
Mandatory audit for businesses with turnover above ₹1 crore.
Audit report under tax audit.
For claiming relief on arrears of salary.
Self-declaration for no TDS on interest.
Online payment of taxes via net banking.
Tax payment receipt.
Centralized Processing Center for ITRs.
Notice from CPC after processing ITR.
Detailed examination of ITR by tax officer.
Challenge to tax assessment order.
Income Tax Appellate Tribunal.
Binding decision on tax matters.
Income presumed by law (e.g., perquisites).
Benefit provided by employer (rent-free house, car).
Fixed amount given for expenses (DA, HRA).
Income not subject to tax (agricultural income).
Amount subtracted from gross income.
Tax Collected at Source (e.g., on sale of scrap).
Minimum Alternate Tax for companies.
Alternate Minimum Tax for non-corporate.
Tax exemption for startups (Section 80-IAC).
Double Taxation – avoided by DTAA.
Legal reduction of tax liability using deductions and exemptions.
Exempt from tax under Section 10(1).
Gifts > ₹50,000 taxable as income.
Same as above, default regime.
Income Tax Glossary (100+ Terms)
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.