Complete Income Tax Calculator Guide FY 2025-26
Master income tax calculation with all income sources, deductions, and regime comparison. Learn how to minimize your tax liability legally and efficiently.
Professional Tax Advice Disclaimer
This calculator provides estimates based on standard tax rules. For complex tax situations, personalized advice, or filing assistance, please consult a qualified Chartered Accountant or tax professional.
Table of Contents
1. Getting Started
Our Income Tax Calculator helps you estimate your tax liability for FY 2025-26 (AY 2026-27) with comprehensive support for all income types, deductions, and both tax regimes.
What You'll Need
Income Details
Form 16, salary slips, business income records
Investment Proofs
PPF, ELSS, insurance premium receipts
Deduction Documents
Medical insurance, education loan statements
Property Details
Rent receipts, home loan interest certificates
2. All Income Sources Explained
Salary Income
Your annual gross salary including basic pay, allowances, and bonuses.
Includes:
- • Basic Salary + DA (Dearness Allowance)
- • HRA (House Rent Allowance) - before exemption
- • Special Allowances (transport, conveyance, etc.)
- • Performance bonuses and incentives
- • Leave encashment
House Rent Allowance (HRA)
HRA received from employer can be partially or fully exempt from tax.
Exemption Formula (Minimum of):
- 1. Actual HRA received
- 2. 50% of salary (metro) or 40% (non-metro)
- 3. Rent paid minus 10% of salary
Note: You must be living in rented accommodation and paying rent
Business/Professional Income
Net profit from business, freelancing, or professional practice after deducting business expenses.
Capital Gains (STCG + LTCG)
Profit from sale of assets like stocks, mutual funds, property, etc.
Short-term (STCG): Assets held <12 months (equity) or <36 months (debt/property)
Long-term (LTCG): Assets held longer than above periods
Rental Income
Income from house property (rent received minus municipal taxes)
Interest Income
Interest from savings account, FD, bonds, etc.
Agricultural Income
Income from agricultural land (generally exempt but used for rate calculation)
Other Sources
Gifts, lottery, dividends, etc.
3. Understanding Deductions
Deductions reduce your taxable income, thereby lowering your tax liability. Here are the major deductions available under the old tax regime:
Section 80C - ₹1,50,000
The most popular deduction with maximum limit of ₹1.5 lakh per financial year.
Investment Options:
- • PPF (Public Provident Fund)
- • EPF (Employee Provident Fund)
- • ELSS Mutual Funds
- • NSC (National Savings Certificate)
- • Tax-saving FD (5-year)
- • Sukanya Samriddhi Yojana
Payments:
- • Life insurance premium
- • Home loan principal repayment
- • Tuition fees (children's education)
- • Stamp duty & registration (property)
Section 80D - Medical Insurance
For Self, Spouse & Children:
₹25,000 (below 60 years) | ₹50,000 (senior citizen)
For Parents:
Additional ₹25,000 (below 60) | ₹50,000 (senior citizen)
Preventive Health Checkup:
₹5,000 (included in above limits)
Section 80E
Education Loan Interest
No upper limit. Interest paid on education loan for self, spouse, or children.
Section 80G
Donations to Charity
50% or 100% of donation amount (depends on organization)
Section 24
Home Loan Interest
Up to ₹2,00,000 for self-occupied property
NPS (80CCD(1B))
Additional NPS Deduction
Extra ₹50,000 over and above 80C limit
4. HRA Exemption Calculation
Step-by-Step Example
Given:
- • Basic Salary: ₹50,000/month
- • HRA Received: ₹20,000/month
- • Rent Paid: ₹18,000/month
- • City: Mumbai (Metro)
Calculation:
- 1. Actual HRA received = ₹2,40,000/year
- 2. 50% of salary (metro) = ₹3,00,000/year
- 3. Rent - 10% of salary = ₹2,16,000 - ₹60,000 = ₹1,56,000
HRA Exemption = ₹1,56,000 (Minimum of above three)
Taxable HRA = ₹2,40,000 - ₹1,56,000 = ₹84,000
5. Family Details & Benefits
Age-Based Tax Benefits
Below 60 years
₹2.5L
Basic exemption limit
60-80 years
₹3L
Senior citizen
Above 80 years
₹5L
Super senior citizen
HUF (Hindu Undivided Family)
HUF is a separate tax entity. If you have HUF income, it's taxed separately with its own exemption limits.
Benefits: Additional tax exemption, separate deduction limits (80C, 80D, etc.), can invest in business, property ownership
6. Old vs New Tax Regime
Since FY 2020-21, taxpayers can choose between two tax regimes. Each has pros and cons.
Old Tax Regime
Tax Slabs:
₹0 - ₹2.5L: Nil
₹2.5L - ₹5L: 5%
₹5L - ₹10L: 20%
Above ₹10L: 30%
✓ Pros:
- • All deductions available (80C, 80D, etc.)
- • HRA exemption allowed
- • Better for those with investments
✗ Cons:
- • Higher tax rates
- • Requires tax planning
New Tax Regime
Tax Slabs (FY 2025-26):
₹0 - ₹3L: Nil
₹3L - ₹7L: 5%
₹7L - ₹10L: 10%
₹10L - ₹12L: 15%
₹12L - ₹15L: 20%
Above ₹15L: 30%
✓ Pros:
- • Lower tax rates
- • Simpler (no deduction tracking)
- • Standard deduction ₹50K allowed
- • Better for low investors
✗ Cons:
- • Most deductions not allowed
- • No HRA exemption
Which Regime to Choose?
✓ Choose Old Regime if you have significant investments (80C), medical insurance (80D), home loan
✓ Choose New Regime if you don't invest much and want simplicity
✓ Use our calculator's "Compare Regimes" feature to see which saves you more tax!
7. Understanding Your Results
Key Metrics Explained
Gross Total Income
Sum of all your income sources before any deductions
Total Deductions
Sum of all Chapter VI-A deductions (80C, 80D, etc.)
Taxable Income
Gross Total Income minus Total Deductions
Tax Before Rebate
Tax calculated on taxable income as per slab rates
Surcharge
Additional tax for high earners (10% if income > ₹50L, 15% if > ₹1Cr)
Health & Education Cess
4% of (Tax + Surcharge)
Total Tax Liability
Final tax payable after adding surcharge and cess
Effective Tax Rate
Percentage of your total income that goes to tax (Total Tax ÷ Gross Income × 100)
Visual Charts
- Income Sources Pie Chart: Shows breakdown of all income types
- Regime Comparison Bar Chart: Side-by-side tax comparison
- Tax Slabs Table: Detailed slab-wise tax calculation
- Effective Rate Comparison: See which regime gives lower effective tax rate
8. Tax Saving Tips
✓ Smart Strategies
- • Maximize 80C (₹1.5L) with ELSS, PPF, EPF
- • Take medical insurance for 80D deduction
- • Use NPS for extra ₹50K deduction (80CCD 1B)
- • Claim HRA if living in rented house
- • Keep home loan for interest deduction (Section 24)
- • Plan donations strategically (80G)
- • Compare both regimes before choosing
- • Start tax planning early in the financial year
✗ Common Mistakes
- • Last-minute investments (rushed decisions)
- • Not comparing both tax regimes
- • Forgetting to claim HRA exemption
- • Not keeping investment proofs
- • Ignoring small deductions (preventive checkup)
- • Not declaring all income sources
- • Choosing regime once and never reviewing
- • Not consulting CA for complex situations
Pro Tip: Export Your Tax Report
Use the Export to CSV button to download your complete tax calculation. This helps during actual ITR filing and serves as a reference for financial planning.
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