Comprehensive Tax Calculator

Indian Income Tax
Calculator

Complete tax calculation with Old vs New regime comparison, HRA exemption, all deductions under Chapter VI-A, and personalized tax planning advice.

Old vs New

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HRA

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Entity Type

Personal Details

Assessment Year

Assessment Year vs Financial Year:

• Financial Year (FY):

- Period when income is earned (April 1 to March 31)

- Example: FY 2024-25 = April 1, 2024 to March 31, 2025

• Assessment Year (AY):

- Period when you file tax return for previous FY

- Always next year after FY

- Example: AY 2025-26 for income earned in FY 2024-25

• Key Point:

- Tax rules and slabs are based on the Assessment Year

- Select the AY for which you want to calculate tax

💡 Different years have different tax slabs and rates

Age

Age-Based Tax Benefits:

• Below 60 years:

- Basic exemption: Rs.2.5L (Old Regime)

- Health insurance: Rs.25,000 limit

• 60-80 years (Senior Citizen):

- Basic exemption: Rs.3L (Old Regime)

- Health insurance: Rs.50,000 limit

• Above 80 years (Super Senior):

- Basic exemption: Rs.5L (Old Regime)

- Health insurance: Rs.50,000 limit

- Additional medical benefits

Below 60: Rs.2.5L exemption, Rs.25K health insurance

Gender

Gender & Tax Implications:

• Tax Slabs:

- Same tax rates for all genders

- No gender-based exemptions

• Equal Treatment:

- Indian tax law is gender-neutral

- Age is the only demographic factor

• Collection Purpose:

- Required for tax filing compliance

- Used for statistical analysis only

💡 Gender does not affect tax rates - all citizens have equal tax treatment

Residential Status

Tax Implications:

• Resident:

- Taxed on worldwide income

- All deductions available

- Standard exemption limits

• Non-Resident:

- Taxed only on Indian income

- Limited deductions

- No basic exemption

- Tax from Rs.1 (no Rs.2.5L exemption)

Residents: Taxed on global income with full exemptions

Income Details (Annual)

Basic Salary (Rs.)

Basic Salary Component:

What is Basic Salary:

• Fixed component of your salary package

• Typically 40-50% of total CTC

• Base for calculating other benefits (PF, gratuity, etc.)

Includes:

• Monthly basic pay × 12 months

• Fixed allowances integrated into basic pay

Excludes:

• HRA, special allowances, bonuses

• Variable pay or performance incentives

• Reimbursements and perquisites

Tax Impact:

• Fully taxable income

• Used for HRA exemption calculation (50%/40% of basic)

Important: Higher basic = Higher HRA exemption potential
PF Contribution: 12% of basic salary (up to Rs.1.8L basic)

HRA (Rs.)

House Rent Allowance (HRA):

What is HRA:

• Allowance paid by employer for rental accommodation

• Usually 40-50% of basic salary

• Partially exempt from income tax

HRA Exemption (minimum of):

• Actual HRA received

• 50% of basic (metro) or 40% of basic (non-metro)

• Rent paid minus 10% of basic salary

Required Documents:

• Rent receipts from landlord

• Rental agreement copy

• Landlord's PAN (if rent >Rs.1L annually)

Key Points:

• Even if living in own house, HRA is still taxable

• Can claim HRA + home loan deduction together

Tax Benefit: Significant exemption for rent payers
Tip: Higher rent = Higher exemption (up to limits)

Special Allowance (Rs.)

Special Allowance Component:

What is Special Allowance:

• Flexible component of salary package

• Often called "flexi pay" or "other allowances"

• Used to balance total CTC after basic + HRA

Common Types:

• Performance allowance

• City compensatory allowance

• Special skill allowance

• Retention allowance

Tax Treatment:

• Fully taxable as salary income

• No specific exemptions available

• Subject to TDS as per applicable rates

Salary Planning:

• Can be restructured for tax optimization

• Often converted to benefits like meal vouchers

Note: Different from reimbursements or perquisites
Planning: Consider salary restructuring to reduce tax

Other Allowances (Rs.)

Other Allowances & Benefits:

Common Allowances:

• Transport/Conveyance allowance

• Medical allowance

• Communication/Phone allowance

• Dearness allowance (DA)

• Travel allowance

• Overtime allowance

Partially Exempt Allowances:

• Transport: Rs.1,600/month (Rs.19,200 annual)

• Medical: Rs.15,000/year

• LTA: For actual travel expenses

Fully Taxable:

• Dearness allowance

• Overtime payments

• Performance incentives

Documentation:

• Keep receipts for reimbursement claims

• Check salary slip for exact breakup

Tax Planning: Structure allowances for optimal exemptions
Tip: Utilize transport & medical allowance limits fully

Bonus (Rs.)

Bonus & Variable Pay:

Types of Bonus:

• Annual performance bonus

• Statutory bonus (under Payment of Bonus Act)

• Festival/Diwali bonus

• Retention bonus

• Variable pay/incentives

• Commission on sales

Statutory Bonus Rules:

• Minimum 8.33% of salary (up to Rs.21,000 salary limit)

• Maximum Rs.7,000 per year

• Only for employees earning ≤Rs.21,000/month

Tax Treatment:

• Fully taxable as salary income

• Subject to TDS if applicable

• Added to total income for tax slab calculation

Payment Timing:

• Taxable in the year of receipt

• May push you to higher tax bracket

Planning: Plan investments if bonus increases tax liability
TDS: Employer may deduct TDS on bonus payments

Other Income (₹)

Income from Other Sources:

Interest Income:

• Savings account interest (>₹10,000 - claim 80TTA)

• Fixed deposits, recurring deposits

• Bonds, debentures, and securities

• Company deposits and loan interest

Dividend Income:

• Dividend from shares (fully taxable)

• Mutual fund dividend distributions

• Cooperative society dividends

Agriculture Income:

• Exempt from tax if below ₹5,000

• Above ₹5,000: Used for rate calculation only

• Income from land cultivation, dairy, etc.

Lottery/Gambling Winnings:

• TDS: 30% deducted at source

• Tax Rate: 30% (flat rate, no exemption)

• Includes lottery, crossword, card games, races

• Prize money from TV shows, competitions

Other Income:

• Freelancing and consultation fees

• Rental income from property

• Commission and brokerage income

• Royalty and intellectual property income

Key Point: Agriculture income exempt but affects tax rates
Lottery TDS: 30% TDS + 30% final tax (no relief)

Income from House Property (₹)

Income from House Property (Section 24a):

What to Enter:

• Net rental income after 30% standard deduction

• This field is for income AFTER standard deduction

• Do NOT enter gross rental income here

Standard Deduction (Section 24a):

• 30% deduction automatically allowed by law

• Covers property repairs, collection charges, etc.

• You don't need to provide receipts for this

Calculation Example:

• Gross rental income: ₹1,00,000

• Less: 30% standard deduction: ₹30,000

• Enter here: ₹70,000

Additional Deductions:

• Home loan interest can be claimed separately

• Municipal taxes paid can be deducted

• For let-out property only

Important: Enter net income after 30% deduction
Tax Treatment: Added to total income for slab calculation

Enter income AFTER 30% standard deduction as per Section 24(a)

Capital Gains from Stock Market (Annual)

STCG - Equity Shares (₹)

Short Term Capital Gains - Equity:

• Definition:

- Gains from equity shares held ≤ 12 months

- Gains from equity mutual funds held ≤ 12 months

• Tax Rate:

- 15% + 4% cess = 15.6% total

- Taxed separately from other income

• Example:

- Buy: ₹1L, Sell: ₹1.2L in 6 months

- STCG: ₹20,000, Tax: ₹3,120

Equity/MF held ≤12 months - 15.6% tax rate

LTCG - Equity Shares (₹)

Long Term Capital Gains - Equity:

• Definition:

- Gains from equity shares held > 12 months

- Gains from equity mutual funds held > 12 months

• Tax Structure:

- First ₹1L per year: Tax-free

- Above ₹1L: 10% + 4% cess = 10.4%

• Example:

- LTCG: ₹1.5L, Tax: (₹1.5L-₹1L) × 10.4%

- Tax: ₹50,000 × 10.4% = ₹5,200

Equity/MF held >12 months - Rs.1L exempt, then 10.4%

STCG - Other Investments (₹)

STCG - Other Investments:

• Includes:

- Debt mutual funds held ≤ 36 months

- Gold, property, bonds held ≤ threshold

- Cryptocurrency gains

• Tax Rate:

- Added to total income

- Taxed at your regular income tax slab

• Important:

- No separate tax rate

- Increases your total taxable income

Debt MF, gold, crypto - taxed at your income slab

LTCG - Other Investments (₹)

LTCG - Other Investments:

• Includes:

- Debt mutual funds held > 36 months

- Gold held > 36 months

- Property held > 24 months

• Tax Rate:

- 20% + 4% cess = 20.8% total

- With indexation benefit (inflation adjustment)

• Benefit:

- Cost price adjusted for inflation

- Reduces taxable gains significantly

Debt MF, gold, property >threshold - 20.8% with indexation

HRA Exemption Details

City Type

Annual Rent Paid (₹)

Deductions (Old Regime Only)

80C (PF, ELSS, PPF etc.) (₹)

Section 80C Tax Saving Investments:

Popular Options:

• PPF: 15-year lock-in, tax-free returns (~7-8%)

• ELSS: 3-year lock-in, market-linked returns

• PF/EPF: Employee provident fund contributions

• NSC: 5-year term, ~6.8% interest

• Tax-saving FD: 5-year lock-in, ~5-7% returns

• Life Insurance: Premium paid (not maturity amount)

• ULIP: Market-linked insurance plans

• Home Loan Principal: Repayment amount

Maximum Limit: ₹1.5 lakh per year
Tax Benefit: Saves ₹31,200-₹46,800 based on tax slab

80D Self/Family (Health Insurance) (₹)

Section 80D Health Insurance Deduction:

Eligible Premiums:

• Health insurance for self and family

• Preventive health check-up expenses

• Medical insurance premiums paid

Age-based Limits:

• Below 60 years: ₹25,000 maximum

• 60+ years: ₹50,000 maximum

Preventive Health Check-up:

• ₹5,000 within the above limits

Tax Benefit: Direct deduction from taxable income
Savings: ₹5,200-₹15,000 based on tax slab

💡 Below 60: ₹25,000

80D Parents (Health Insurance) (₹)

Section 80D Parents Health Insurance:

Eligible Expenses:

• Health insurance premiums for parents

• Medical expenses for parents (if no insurance)

• Preventive health check-up for parents

Maximum Limit:

• ₹50,000 regardless of parents' age

• Separate from self/family limit

Key Benefits:

• Additional to self/family deduction

• Total 80D can be up to ₹1 lakh (₹50k + ₹50k)

Combined Benefit: Up to ₹1 lakh total 80D deduction
Tax Savings: ₹10,400-₹30,000 based on tax slab

💡 Additional ₹50,000 for parents regardless of age

80CCD(1B) (NPS) (₹)

Section 80CCD(1B) - NPS Additional Deduction:

What is NPS:

• National Pension System - Government retirement scheme

• Market-linked pension and retirement planning

• Long-term wealth creation with tax benefits

Key Benefits:

• Additional ₹50,000 deduction over 80C limit

• Separate from ₹1.5 lakh 80C investments

• Total possible: ₹2 lakh (₹1.5L + ₹50K)

Investment Options:

• Equity, corporate bonds, government securities

• Choice of fund managers and asset allocation

Maximum Limit: ₹50,000 per year
Tax Savings: ₹10,400-₹15,000 based on tax slab

80E (Education Loan) (₹)

Section 80E Education Loan Interest:

Eligible Loans:

• Education loan for self, spouse, or children

• Higher education (graduation & above)

• From approved financial institutions only

Deductible Amount:

• Only interest portion of EMI

• No upper limit on deduction

• Not principal repayment amount

Time Limit:

• Maximum 8 years from start of repayment

• Or until loan is fully repaid (whichever is earlier)

Special Feature: No maximum limit unlike other sections
Tax Savings: 20-30% of interest amount paid

80G Donations (50% deduction) (₹)

50% Deduction Category:

• Government Funds:

- PM National Relief Fund

- National Defence Fund

- State Government Relief Funds

• Educational Institutions:

- Government schools/colleges

- Some approved private institutions

• Other Organizations:

- Some NGOs without 100% exemption

- Certain charitable trusts

80G Donations (100% deduction) (₹)

100% Deduction Category:

• Prime Minister's Funds:

- PM CARES Fund

- PM National Relief Fund

- Clean Ganga Fund

• Government Schemes:

- Swachh Bharat Kosh

- National Heritage Fund

- Pradhan Mantri Kaushal Vikas Yojana

• Special Categories:

- Government libraries

- Government museums

- Government zoos

24(b) (Home Loan Interest) (₹)

Section 24(b) Home Loan Interest Deduction:

Eligible Properties:

• Self-occupied residential property

• Under-construction property (pre-completion)

• Home loan from banks/financial institutions

Deduction Limits:

• ₹2 lakh maximum per year for self-occupied

• Only interest portion of EMI (not principal)

• Available in both old and new tax regime

Key Points:

• Principal repayment goes under Section 80C

• Interest can be claimed even during construction

• No time limit like education loan

Combined Benefit: Up to ₹3.5L (₹2L interest + ₹1.5L principal)
Tax Savings: ₹41,600-₹60,000 annually

Professional Tax (₹)

Professional Tax Deduction:

What is Professional Tax:

• State-imposed tax on professions and employment

• Deducted by employer from salary (TDS)

• Varies by state - not applicable in all states

State-wise Rates:

• Karnataka, West Bengal: ₹200-₹300 per month

• Maharashtra: ₹175-₹200 per month

• Andhra Pradesh, Telangana: ₹150-₹200

• Not applicable: Delhi, Punjab, UP, etc.

Tax Benefit:

• Fully deductible from income tax

• Usually shows in Form 16 automatically

Maximum Annual: Usually ₹2,400-₹3,600
Tax Savings: ₹500-₹1,080 based on tax slab

Other Deductions (₹)

Other Deductions Explained:

80TTA: ₹10,000 savings account interest deduction

80TTB: ₹50,000 interest deduction for senior citizens

80EE: Additional ₹50,000 home loan interest deduction

80EEB: ₹1.5 lakh electric vehicle loan interest deduction

80DD: ₹75,000-₹1.25 lakh for disabled dependent care

80DDB: Medical treatment of specified diseases deduction

Tax Benefit: Direct reduction from taxable income, saving 20-30% tax based on your tax slab

Personal Tax Calculation Results

AY 2025-26 (FY 2024-25) - Current

Fill in your details to calculate and compare tax regimes

Tax Slabs for 2025-26

Old Regime

Basic Exemption:₹250,000

₹3L - ₹5L5%

₹5L - ₹10L20%

Above ₹10L30%

New Regime

Basic Exemption:₹300,000

₹3L - ₹7L5%

₹7L - ₹10L10%

₹10L - ₹12L15%

₹12L - ₹15L20%

Above ₹15L30%

Rebates & Additional Info:

Section 87A Rebates:

Old Regime: ₹12,500 rebate if taxable income ≤ ₹5L

New Regime: ₹25,000 rebate if taxable income ≤ ₹7L

Result: Zero tax if rebate covers full tax liability

• Health & Education Cess: 4% on income tax

• Standard Deduction: ₹75,000 (New Regime)

• Surcharge: Applicable on income above ₹50L/₹1Cr

Download Detailed Tax Reports (Form 16 Style)

Get comprehensive tax calculation reports with complete breakdowns, deductions, and tax slabs - Similar to Form 16 format

PDFs include: Income breakdown, deduction details, tax slabs, effective rates, and professional tax computation format

Tax Planning Tips & Strategies

Smart strategies to optimize your tax liability and maximize savings

Section 80C Investments

Invest up to ₹1.5L in PPF, ELSS, NSC, tax-saving FDs, and life insurance to save up to ₹46,800 in taxes.

Learn More

Health Insurance (80D)

Self/Family: ₹25K (₹50K if 60+), Parents: ₹50K additional. Total max ₹1L with proper planning.

Learn More

Home Loan Benefits

Claim up to ₹2L interest deduction under Section 24(b) and ₹1.5L principal repayment under 80C.

Learn More

Education Loan (80E)

Full interest deduction on education loans with no upper limit for self, spouse, or children.

Learn More

NPS Additional (80CCD1B)

Extra ₹50K deduction over and above 80C limit by investing in National Pension System.

Learn More

Donations (80G)

50% deduction: PM Relief Fund, educational institutions. 100% deduction: PM CARES, Swachh Bharat Kosh, Clean Ganga Fund.

Learn More

Section 87A Rebates

New Regime: Rs.25K rebate for income ≤Rs.7L (effectively no tax up to Rs.12L). Old Regime: Rs.12.5K rebate for income ≤Rs.5L.

Learn More

❓ FAQ

Income Tax Calculator - Frequently Asked Questions

Find answers to common questions about this calculator

Old regime has more deductions (80C, 80D, HRA, etc.) but higher tax rates. New regime has lower rates but limited deductions. New regime suits those with fewer investments/deductions.

Choose Old regime if: You invest in 80C (₹1.5L), have home loan, claim HRA. Choose New regime if: You don't invest much, want simplicity, lower tax rates. Use our calculator to compare both.

EPF, PPF, ELSS, Life Insurance Premium, Home Loan Principal, Tuition Fees, NSC, SSY, Tax Saver FD. Maximum deduction: ₹1.5 lakh per year. Available only in old tax regime.

1) Max out 80C (₹1.5L), 2) NPS additional 80CCD(1B) (₹50K), 3) Health insurance 80D (₹25K-₹100K), 4) HRA exemption, 5) Home loan interest (₹2L), 6) Donations 80G.

Standard deduction of ₹50,000 is available to salaried employees in both old and new tax regimes. It's automatically deducted from gross salary before tax calculation. No proof needed.

ITR filing deadline is July 31st for most individuals. Late filing attracts penalty up to ₹5,000. File ITR even if no tax liability to: claim refunds, carry forward losses, get visa, loan approvals.

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Indian Income TaxCalculator

Tax Calculator

Entity Type

Personal Details

Income Details (Annual)

Capital Gains from Stock Market (Annual)

HRA Exemption Details

Deductions (Old Regime Only)

Personal Tax Calculation Results

Tax Slabs for 2025-26

Old Regime

New Regime

Download Detailed Tax Reports (Form 16 Style)

Tax Planning Tips & Strategies

Section 80C Investments

Health Insurance (80D)

Home Loan Benefits

Education Loan (80E)

NPS Additional (80CCD1B)

Donations (80G)

Section 87A Rebates

Income Tax Calculator - Frequently Asked Questions

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Indian Income Tax
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