Income Tax Calculator India

India Income Tax Slabs (New Regime AY 2025-26):

Tax = 0 for income ≤ 400000
+5% on (income - 400000) for 400001-800000
+10% on (income - 800000) for 800001-1200000
+15% on (income - 1200000) for 1200001-1500000
+20% on (income - 1500000) for 1500001-2000000
+30% on (income - 2000000) for >2000000

Taxable Income:

Income Tax:

Health & Education Cess (4%):

Total Tax Liability:

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1. What is the New Tax Regime?

The new tax regime offers lower tax rates but with fewer deductions and exemptions compared to the old regime. This calculator computes tax liability as per the new regime slabs for Assessment Year 2025-26.

2. How Tax Calculation Works

India follows a progressive tax system where higher income is taxed at higher rates. The tax is calculated in slabs:

First ₹400,000: 0% tax
Next ₹400,000 (₹400,001-₹800,000): 5%
Next ₹400,000 (₹800,001-₹1,200,000): 10%
Next ₹300,000 (₹1,200,001-₹1,500,000): 15%
Next ₹500,000 (₹1,500,001-₹2,000,000): 20%
Above ₹2,000,000: 30%

3. Tax Slabs Explained

Details: The tax is not flat but calculated progressively. For example, if your income is ₹900,000:

First ₹400,000: ₹0 tax
Next ₹400,000: ₹400,000 × 5% = ₹20,000
Remaining ₹100,000: ₹100,000 × 10% = ₹10,000
Total tax before cess: ₹30,000

4. Using the Calculator

Tips: Enter your gross annual income in INR. The calculator will compute:

Basic tax as per slabs
4% health and education cess
Total tax payable

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old regime?
A: New regime is better if you have few deductions. Old regime may be better if you have substantial deductions (HRA, 80C, etc.).

Q2: Is cess included in the calculation?
A: Yes, we've included 4% health and education cess on the tax amount.

Q3: What about surcharge?
A: Surcharge applies only if income exceeds ₹5 million (not included in this calculator).

Q4: Are there any deductions in new regime?
A: Only standard deduction of ₹50,000 is allowed for salaried individuals.

Q5: Is this calculator for salaried or business income?
A: It works for both as the slabs are same, but business income may have different deductions in old regime.