Income Tax Calculator - Tax Calculation for FY 2025-26

Age

Annual Income

Fiscal Year

Section 80C

Section 80D

HRA

NPS

Home Loan Interest

PPF Investment Invest in PPF for long-term tax benefits under 80C. Lock-in period of 15 years with tax-free returns.
ELSS Funds Equity-linked savings schemes offer tax benefits with potential market returns. Shortest lock-in period of 3 years among 80C options.
Health Insurance Get additional deduction under 80D for health insurance premiums. Up to ₹25,000 for self and family, additional for parents.
NPS Investment Additional tax benefit of ₹50,000 under 80CCD(1B) over and above 80C limit. Long-term retirement planning with tax benefits.
Home Loan Interest paid on home loan up to ₹2,00,000 can be claimed as deduction under Section 24(b).

Summary

Gross Income: ₹0

Standard Deduction: ₹75,000

Taxable Income: ₹0

Total Tax: ₹0

Monthly Tax: ₹0

Summary

Gross Income: ₹0

Standard Deduction: ₹50,000

Taxable Income: ₹0

Total Tax: ₹0

Monthly Tax: ₹0

* Includes 4% Health and Education Cess when applicable

Revised Tax Slabs for Upcoming FY 2025-26 (AY 2026-27)

This year’s Union Budget 2025 brings significant tax relief for the middle class, especially salaried individuals. The Finance Minister announced that for the upcoming Financial Year (FY) 2025-26 or Assessment Year (AY) 2026-27, individuals earning up to ₹12 lakh annually (after considering the rebate under section 87A) will have zero tax liability under the revised tax regime. The new tax structure introduces revised slabs of 5%, 10%, 15%, 20%, 25%, and 30%, replacing the previous limits.

New Regime	v/s	New Regime
FY 2025-26 Tax Slab	Tax Rate	FY 2024-25 Tax Slab
Upto ₹ (4.0 lakh)	Nil	Upto ₹ (3.0 lakh)
₹ (4.0 lakh to 8.0 lakh)	5%	₹ (3.0 lakh to 7.0 lakh)
₹ (8.0 lakh to 12.0 lakh)	10%	₹ (7.0 lakh to 10.0 lakh)
₹ (12.0 lakh to 16.0 lakh)	15%	₹ (10.0 lakh to 12.0 lakh)
₹ (16.0 lakh to 20.0 lakh)	20%	₹ (12.0 lakh to 15.0 lakh)
₹ (20.0 lakh to 24.0 lakh)	25%	——
More than (24.0 lakh)	30%	More than (15.0 lakh)

Salaried employees also benefit from a standard deduction of ₹75,000, effectively reducing taxable income and ensuring that those earning up to ₹12,75,000 pay no tax. However, special rate incomes, such as capital gains, remain taxed at their respective rates.

Nearly 85% of taxpayers, including salaried individuals, self-employed professionals, and small business owners, will benefit from this change. The threshold for the highest 30% tax rate has been raised to ₹24 lakh, up from ₹15 lakh in the new regime and ₹10 lakh in the old regime, leading to higher savings and increased take-home pay.

What Is an Income Tax Calculator?

An Income Tax Calculator is an online tool designed to help you estimate your income tax liability for a specific financial year based on your income, deductions, and applicable tax laws. It simplifies tax computations by eliminating the need for manual calculations and provides accurate results in a user-friendly manner.

Income Tax Calculator FY 2024-25 (AY 2025-26) — CountLen/Income Tax Calculator for FY 2024-25 or AY 2025-26 for salary employees

How to Use an Income Tax Calculator?

The CountLen Tax Calculator is a reliable tool designed to simplify your tax calculations for FY 2024-25 (AY 2025-26). It incorporates all current tax slabs, deductions, and exemptions to provide accurate results. Here CountLen team provide a user-friendly tool which is free to use. You simply enter you financial details to get an accurate estimate of your tax obligations.

Gather Your Financial Details:

Gross Income (salary, business income, rental income, etc.)
Allowances (HRA, LTA, etc.)
Deductions under various sections (80C, 80D, 80CCD, etc.)
Other income (interest from savings, fixed deposits, etc.)
Capital gains (if any).

Select the Tax Regime:

New Regime or Old Regime.

Enter your gross income.

Input the annual income
Choose between the Old Regime (with deductions and exemptions) or the New Regime (lower tax rates but limited deductions).
Input eligible deductions like 80C (investments), 80D (health insurance), and other deductions, if opted old regime.
Specify exemptions like HRA or standard deduction (if opted old regime or if applicable).
CountLen tool automatically calculate the income tax, no need to press button, its click free tool.

Compute Tax:

The calculator will compute your taxable income by deducting exemptions and deductions from your gross income.
Its includes 4% Health and Education Cess in the results.
It will calculate the tax liability slab-wise and display the tax calculation summary.

Review Results:

The calculator will show the tax summary:
- New Regime Tax:
- Old Regime tax:
- Better Regime:
- Tax Saving:
- Monthly Tax Deduction:

Instructions:
* Includes 4% Health and Education Cess.
* Standard Deduction of ₹75,000 is automatically included in the New Regime while ₹50,000 in the Old Regime.
* If opting for the Old Regime, ensure that the standard deduction of ₹1,50,000 under Section 80C is fully utilized.

Compare Regimes:

If applicable, compare the tax liabilities under both regimes to decide which one is more beneficial for you.

New v/s Old Regime — Income Tax Slab, FY 2024-25 (AY 2025-26), Age below 60yrs.

New Regime	v/s	Old Regime
FY 2024-25 Tax Slab	Tax Rate	FY 2024-25 Tax Slab
Upto ₹ (3.0 lakh)	Nil	Upto ₹ (2.5 lakh)
₹ (3.0 lakh to 7.0 lakh)	5%	₹ (2.5 lakh to 5.0 lakh)
₹ (7.0 lakh to 10.0 lakh)	10%	— — — — — — — —
₹ (10.0 lakh to 12.0 lakh)	15%	— — — — — — — —
₹ (12.0 lakh to 15.0 lakh)	20%	₹ (5.0 lakh to 10.0 lakh)
More than (15.0 lakh)	30%	More than (10.0 lakh)
Health and Education Cess	04%	Health and Education Cess

Key Points Old Regime:

Below Age (60 years): The basic exemption limit is ₹2,50,000.
Senior Citizens (60–80 years): The basic exemption limit is ₹3,00,000.
Super Senior Citizens (80+ years): The basic exemption limit is ₹5,00,000.
Deductions like 80C, 80D, HRA, etc., are available in the old tax regime.

Suppose your total gross income is ₹20,00,000. To calculate the taxable amount and allocate it as per the New Regime income tax slab chart, follow these steps:

Step-by-Step Tax Calculation for Gross Income of ₹20,00,000

This step-by-step method ensures clarity, accuracy, and transparency while helping taxpayers identify the most tax-efficient option. Ultimately, this approach empowers individuals to make well-informed decisions about their income tax, ensuring compliance with tax regulations and minimizing their overall tax liability.

Below is a simplified and structured guide to calculating taxable income and tax liability under both the New and Old Tax Regimes:

Step 1: Determine Taxable Income

New Tax Regime:

Gross Income: ₹20,00,000
Less Nil-Tax Amount: ₹3,00,000 (Exempt for the initial slab)
Less Standard Deduction: ₹75,000
Taxable Income: ₹20,00,000 – ₹3,00,000 – ₹75,000 = ₹16,25,000

Old Tax Regime:

Gross Income: ₹20,00,000
Less Nil-Tax Amount: ₹2,50,000
Less Standard Deduction: ₹50,000
Less Section 80C Deduction: ₹1,50,000
Taxable Income: ₹20,00,000 – ₹2,50,000 – ₹50,000 – ₹1,50,000 = ₹15,50,000

Step 2: Tax Calculation Under New Tax Regime

Taxable Income: ₹16,25,000
The income is allocated into tax slabs for calculation:

₹3,00,000 to ₹7,00,000:
₹4,00,000 × 5% = ₹20,000
₹7,00,001 to ₹10,00,000:
₹3,00,000 × 10% = ₹30,000
₹10,00,001 to ₹12,00,000:
₹2,00,000 × 15% = ₹30,000
₹12,00,001 to ₹15,00,000:
₹3,00,000 × 20% = ₹60,000
Above ₹15,00,000:
₹4,25,000 × 30% = ₹1,27,500

Total Tax Before Cess:
₹20,000 + ₹30,000 + ₹30,000 + ₹60,000 + ₹1,27,500 = ₹2,67,500

Health & Education Cess (4%):
₹2,67,500 × 4% = ₹10,700

Final Tax Payable (New Regime):
₹2,67,500 + ₹10,700 = ₹2,78,200

Income_tax_calculator_2024-25 — countLen/side-by-side comparison of income tax calculations under the New and Old Regimes for a gross income of ₹20,00,000

Step 3: Tax Calculation Under Old Tax Regime

Taxable Income: ₹15,50,000
The income is allocated into tax slabs for calculation:

₹2,50,001 to ₹5,00,000:
₹2,50,000 × 5% = ₹12,500
₹5,00,001 to ₹10,00,000:
₹5,00,000 × 20% = ₹1,00,000
Above ₹10,00,000:
₹8,00,000 × 30% = ₹2,40,000

Total Tax Before Cess:
₹12,500 + ₹1,00,000 + ₹2,40,000 = ₹3,52,500

Health & Education Cess (4%):
₹3,52,500 × 4% = ₹14,100

Final Tax Payable (Old Regime):
₹3,52,500 + ₹14,100 = ₹3,66,600

Step 3: Summary of Tax Liability

Regime	Taxable Income	Tax Before Cess	Cess (4%)	Total Tax Payable
New Tax Regime	₹16,25,000	₹2,67,500	₹10,700	₹2,78,200
Old Tax Regime	₹15,50,000	₹3,52,500	₹14,100	₹3,66,600

Under the New Tax Regime, the total tax payable is ₹2,78,200.
Under the Old Tax Regime, the total tax payable is ₹3,66,600.

This calculation clearly shows that the New Tax Regime results in lower tax liability for the given income of ₹20,00,000.

Surcharge Rate: FY 2024-25

FY 2024-25 Annual taxable Income	Under New Regime Surcharge Rate	Under Old Regime Surcharge Rate
Up-to ₹ (50.0 lakh)	Nil	Nil
₹ (50.0 lakh to 1.0 crore)	10%	10%
₹ (1.0 crore to 2.0 crore)	15%	15%
₹ (2.0 crore to 5.0 crore)	25%	25%
More than (5.0 crore)	25%	37%

Under the new tax regime for FY 2024-25, the highest surcharge rate has been reduced from 37% to 25%, effective April 1, 2023. Additionally, for incomes under sections 111A, 112A, and 115AD, the maximum surcharge is capped at 15%, regardless of total income. These changes simplify the tax structure and offer relief to taxpayers.

FAQs on the Tax System and Deductions:

The Finance Minister announced that under the revised tax regime for FY 2025-26 (AY 2026-27), individuals earning up to ₹12 lakh annually (after considering the rebate under Section 87A) will have zero tax liability.

The new tax structure includes the following revised slabs:

Up to ₹4 lakh – No tax
₹4 lakh to ₹8 lakh – 5%
₹8 lakh to ₹12 lakh – 10%
₹12 lakh to ₹16 lakh – 15%
₹16 lakh to ₹20 lakh – 20%
₹20 lakh to ₹24 lakh – 25%
More than ₹24 lakh – 30%

The new regime increases the income threshold for the highest 30% tax rate from ₹15 lakh to ₹24 lakh, offering more savings. Additionally, the tax-free limit has been raised from ₹7 lakh to ₹12 lakh (after rebate under Section 87A).

Salaried employees are eligible for a standard deduction of ₹75,000, effectively reducing their taxable income. This ensures that individuals earning up to ₹12.75 lakh will still have zero tax liability.

Around 85% of taxpayers, including salaried individuals, self-employed professionals, and small business owners, will benefit from this change, as they will pay less tax and enjoy higher take-home income.

No, the rebate under Section 87A cannot be applied to special rate income, such as long-term and short-term capital gains, which will continue to be taxed separately at their respective rates.

Old Tax Regime:

Higher tax rates but multiple deductions and exemptions available.
Benefits include Sections 80C, 80D, HRA, and LTA.
Ideal for taxpayers with significant investments and loans.

New Tax Regime:

Lower tax rates with simplified slabs.
Most deductions and exemptions removed, except for the standard deduction.
Suitable for those who prefer liquidity over long-term investments.
Made the default regime for salaried individuals from FY 2023-24.

Old Regime: Flat deduction of ₹50,000 for salaried employees and pensioners remains unchanged.
New Regime: The standard deduction in the new tax regime was set at ₹50,000 from FY 2023-24 but will increase to ₹75,000 starting FY 2024-25, as per Budget 2024. Additionally, for family pensioners, the deduction will rise from ₹15,000 to ₹25,000 under the new regime.

Key Features:

Automatically applied to taxable salary income.
No documentation or proof required.
Applicable regardless of actual expenses incurred.

Section 80C allows a maximum deduction of ₹1,50,000 for investments and expenses, including:

Long-term Savings:
- Public Provident Fund (PPF) – 15-year lock-in.
- Employee Provident Fund (EPF) – Linked to employment.
- National Savings Certificate (NSC) – 5-year term.
Insurance and Investments:
- Life Insurance Premiums – Up to 10% of the sum assured.
- Equity Linked Savings Scheme (ELSS) – 3-year lock-in.
- Unit Linked Insurance Plans (ULIPs).
Education and Housing:
- Tuition fees for up to two children.
- Principal repayment on home loans.
- Infrastructure bonds (when notified).

You can claim HRA and home loan benefits simultaneously if eligible.

HRA Benefits:
- The least of the following is exempt:
  - Actual HRA received.
  - 50% of salary (metro cities) or 40% (non-metro).
  - Actual rent paid minus 10% of salary.
  - Rent receipts or proof of rent payments are required.

Home Loan Benefits:
- Principal repayment: Deductible under Section 80C (₹1.5 lakh limit).
- Interest payment: Deductible under Section 24(b) (₹2 lakh limit for self-occupied properties).
- Additional interest benefit for first-time homebuyers (Section 80EE or 80EEA, if applicable).

NPS offers a multi-layered tax benefit system:

Basic Contribution (Section 80CCD(1)):
- Part of the ₹1.5 lakh limit under Section 80C.
- Deduction limit:
  - 10% of salary (for salaried employees).
  - 20% of gross income (for self-employed individuals).
Additional Contribution (Section 80CCD(1B)):
- An additional deduction of ₹50,000.
- Not included in the ₹1.5 lakh limit under Section 80C.
Employer Contribution (Section 80CCD(2)):
- Up to:
  - 10% of basic salary + DA (private-sector employees).
  - 14% of basic salary + DA (government employees).
- This contribution is not part of the ₹1.5 lakh Section 80C limit.

Key documents include:

Investment proofs (PPF passbook, ELSS statement, etc.)
Tuition fee receipts (for children’s education).
Insurance premium receipts
Rent receipts (for HRA)
Loan certificates (for home loan deductions)

Most deductions are not available under the New Tax Regime. However, some exemptions like the standard deduction (₹75,000) and employer contributions to NPS (Section 80CCD(2)) are allowed.

Section 80CCD(1B) allows an additional deduction of ₹50,000 for contributions made to the National Pension System (NPS). This is over and above the ₹1.5 lakh limit under Section 80C

Yes, you can claim both:

HRA: If you are living in a rented house and paying rent.
Home Loan Deductions: If you have taken a home loan, you can claim deductions under Section 80C (principal repayment) and Section 24(b) (interest payment).

The FAQs cover key aspects of the Indian tax system, including differences between old and new regimes, standard deductions, Section 80C deductions, housing benefits, and NPS tax benefits, helping taxpayers understand tax structures, deductions, and their calculations.

If you have any questions or need assistance with Income Tax Calculation for FY 2024-25 (AY 2025-26), or face challenges while using the CountLen Tax Calculator, feel free to share your concerns in the comments section. The CountLen team is committed to offering prompt and effective solutions, ensuring all your queries are resolved quickly and efficiently.

If you spot any inaccuracies or misleading information, we encourage you to provide feedback. We’re here to support you and help you maximize the benefits of accurate tax calculations!

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