Income Tax Calculator FY 2025-26 — Free CA-Reviewed Tool

Updated: 8 May 2026 Reviewed by CA Sundram Gupta · Founder, Patron Accounting LLP

Income Tax Calculator — Full Tax Computation FY 2025-26

TL;DR

Comprehensive income tax computation for FY 2025-26 (AY 2026-27) covering salary, house property (rental + home loan), capital gains (LTCG/STCG), and other income. Choose your regime, enter income components, and get the full waterfall: gross income → deductions → slab tax → 87A rebate → special-rate tax → surcharge → cess → net payable or refund after TDS. For regime comparison, use the Old vs New Regime Calculator. For business or freelance income, see the Section 44ADA Calculator.

Income Tax Calculator

Enter your income, deductions, and TDS. The calculator computes total tax under your chosen regime and shows net payable or refund. Includes capital gains at correct special rates.

Step 1 — Setup

Financial Year

Slabs identical for both years

Tax Regime

Age Group

Income Type

Step 2 — Income Sources

Gross Salary (₹) — annual Gross annual salary including basic, HRA, allowances, perks

Other Income (₹) Interest, dividends, family pension, etc.

Rental Income (₹) — annual gross Annual rent received from let-out property (before 30% std deduction)

Home Loan Interest (₹) Section 24(b). Self-occupied: max ₹2L (old regime only). Let-out: full interest.

Capital Gains (Already Classified)

Equity LTCG — Sec 112A (₹) Listed equity held > 12 months. Taxed 12.5% above ₹1.25L exemption.

Equity STCG — Sec 111A (₹) Listed equity held ≤ 12 months. Taxed at flat 20%.

Other LTCG — Sec 112 (₹) Property/gold/debt MF held > 24 months. Taxed at 12.5% no indexation.

Other STCG (₹) Property/gold/debt MF held shorter than threshold. Added to income, taxed at slab.

Need help classifying capital gains? Use the Capital Gains Calculator to determine LTCG vs STCG and asset type.

Step 3 — Old Regime Deductions

Only applies if Old Regime is selected above. Ignored under New Regime.

Section 80C (₹) Max ₹1.5L

Section 80D (₹) Health insurance

80CCD(1B) NPS (₹) Max ₹50K

HRA Exemption (₹) Computed Section 10(13A) exempt amount

Other (80E/80G/80TTA etc.) (₹) Education loan, donations, savings interest

Step 4 — TDS & Routing Flags

TDS Already Deducted (₹) Total TDS from Form 26AS / AIS — used to compute net payable or refund

Out-of-scope cases — check if any apply:

I have business or professional incomeIncluding freelance, consulting, F&O, intraday, partnership share. Calculator will route to the right tool.

I have foreign income or foreign assetsIncluding ESOPs/RSUs from foreign companies. Schedule FA disclosure required.

I am NRI or RNORResidential status determination, DTAA, foreign tax credit needed.

I have crypto / VDA incomeSection 115BBH flat 30% taxation. Schedule VDA disclosure required.

Want a CA to review this output before it goes into your file?

Free 15-min review by a Chartered Accountant — Income Tax Calculator validation, professional documentation, no obligation.

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How Income Tax Computation Works

Income tax for FY 2025-26 is governed by the Income Tax Act 1961, administered by the Income Tax Department per ICAI standards. The Ministry of Finance notifies slab rates and rebates each year through the Union Budget; PIB issues confirming press releases. Computation follows a standard 7-step waterfall.

Step 1. Total Gross Income = Salary + House Property + Other + Slab-rate STCG
Step 2. Less: Standard Deduction + (if Old) Chapter VI-A deductions
Step 3. Taxable Income (slab portion) = Step 1 − Step 2
Step 4. Slab Tax = Apply regime slabs to Step 3
Step 5. Less: Section 87A Rebate (if eligible)
Step 6. Add: Tax on Special-Rate Capital Gains (LTCG/STCG)
Step 7. Add: Surcharge (if income > ₹50L) + 4% Cess
Final. Net Payable / Refund = Total Tax − TDS Already Deducted

Income Heads Covered

Salary: Gross salary including basic, HRA, perks, allowances. Standard deduction of ₹75K (new regime) or ₹50K (old) auto-applied for salaried.
House Property: Net rental income after 30% standard deduction (Section 24(a)) and home loan interest (Section 24(b)). Self-occupied gets only ₹2L home loan interest deduction (old regime only).
Capital Gains: 4 categories with different rates — Equity LTCG (12.5% above ₹1.25L), Equity STCG (20%), Other LTCG (12.5%), Other STCG (slab).
Other Sources: Interest, dividends, family pension, lottery (taxed separately), gifts above ₹50K.

What's Not Covered (Use Other Tools)

Business / Professional Income → Section 44ADA Calculator (presumptive) or ITR Form Selector (regular books)
Foreign Income / NRI / RNOR → ITR Form Selector + CA consultation
Crypto / VDA → Section 115BBH treatment requires CA assistance
Lottery / Online Gaming → Section 115BB / 115BBJ flat 30% — CA consultation

Slab Rates & Surcharge for FY 2025-26

New Regime Slabs (Default)

Income Slab	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 - ₹8,00,000	5%
₹8,00,001 - ₹12,00,000	10%
₹12,00,001 - ₹16,00,000	15%
₹16,00,001 - ₹20,00,000	20%
₹20,00,001 - ₹24,00,000	25%
Above ₹24,00,000	30%

Old Regime Slabs

Slab	Below 60	Senior (60-80)	Super Senior (80+)
Basic Exemption	₹2.5L	₹3L	₹5L
5% Slab	₹2.5L - ₹5L	₹3L - ₹5L	—
20% Slab	₹5L - ₹10L	₹5L - ₹10L	₹5L - ₹10L
30% Slab	Above ₹10L	Above ₹10L	Above ₹10L

Section 87A Rebate

New Regime: Up to ₹60,000 if total taxable income (excluding special-rate income) ≤ ₹12L. Marginal relief from ₹12L to ~₹12.7L.
Old Regime: Up to ₹12,500 if total taxable income ≤ ₹5L.
Rebate does NOT apply to Section 111A (STCG equity) or 112A (LTCG equity) tax even if total income is within threshold.

Surcharge Tiers

Income	New Regime	Old Regime
Above ₹50L - ₹1cr	10%	10%
Above ₹1cr - ₹2cr	15%	15%
Above ₹2cr - ₹5cr	25%	25%
Above ₹5cr	25% (capped)	37%

Plus 4% Health and Education Cess on the total of (tax + surcharge). Marginal relief applies at each surcharge boundary.

Need Help Filing Your ITR?

Patron's CAs compute your tax under both regimes, apply every available deduction, and file the right ITR form for FY 2025-26. We support Pune, Mumbai, Delhi, Gurugram and pan-India clients.

+91 945 945 6700 WhatsApp Email

Capital Gains Treatment (Post 23 July 2024)

The Finance Act 2024 changed capital gains rates effective 23 July 2024. The calculator uses the post-pivot rates for all capital gains inputs, which apply to all sales on or after that date.

Asset Type	Holding Period	Classification	Section	Tax Rate
Listed Equity / Equity MF	> 12 months	LTCG	112A	12.5% above ₹1.25L exemption
Listed Equity / Equity MF	≤ 12 months	STCG	111A	20% flat
Property / Gold / Unlisted	> 24 months	LTCG	112	12.5% no indexation
Debt MF / Property short	≤ 24 months	STCG	—	Slab rate (added to income)

How the Calculator Treats Capital Gains

Equity LTCG: Subtracts ₹1.25L annual exemption, applies 12.5% on remainder, adds 4% cess
Equity STCG: Applies 20% flat on full amount, adds 4% cess
Other LTCG: Applies 12.5% flat (no indexation), adds 4% cess
Other STCG: Added to slab-rate income, taxed per regime slabs (this is why it's a separate field)

Why 4 separate capital gains fields? Each category has a different tax treatment under different sections of the Income Tax Act. Combining them would result in incorrect tax calculation. If you're unsure how to classify your gains, use the dedicated Capital Gains Calculator with date-based holding period detection.

Pre-23-July-2024 sales: If you sold before this date, the old regime applied (10% LTCG above ₹1L for listed equity, 15% STCG, 20% with indexation for property/unlisted). This calculator uses post-pivot rates only. For pre-pivot sales, consult a CA.

Worked Examples

Example 1 — Salaried with Equity LTCG

Salaried, age 32, salary ₹15L, FD interest ₹50K, Equity LTCG ₹2L from mutual funds (held 18 months). New regime. TDS deducted ₹1L.

Slab income = ₹15L + ₹50K = ₹15.5L. Less ₹75K std ded = ₹14.75L taxable.
Slab tax: 0 + 20K + 40K + 41,250 (12-14.75 = 2.75L × 15%) = ₹1,01,250.
87A rebate: income > ₹12L → no rebate.
Equity LTCG: (₹2L − ₹1.25L) × 12.5% = ₹9,375.
Total before cess: ₹1,01,250 + ₹9,375 = ₹1,10,625. Cess 4% = ₹4,425.
Total tax = ₹1,15,050. Less TDS ₹1L = Net payable ₹15,050.

Example 2 — Senior with Rental + Other

Pensioner, age 65, pension ₹6L, FD interest ₹2L, rental income ₹3L (let-out, home loan interest ₹1L). Old regime. TDS ₹40K.

House property: ₹3L − 30% std ded = ₹2.1L − ₹1L home loan interest = ₹1.1L
Total slab income: ₹6L + ₹2L + ₹1.1L = ₹9.1L. Less ₹50K std ded = ₹8.6L taxable.
Old regime senior slabs: 0(0-3L) + 10K(3L-5L × 5%) + 72K(5L-8.6L × 20%) = ₹82,000.
87A: income > ₹5L → no rebate.
Cess 4% = ₹3,280. Total tax = ₹85,280. Less TDS ₹40K = Net payable ₹45,280.

Example 3 — High Earner with All Income Types

Salaried, age 45, salary ₹40L, FD interest ₹2L, Equity LTCG ₹5L, Property STCG ₹3L (held 18 months → STCG since < 24 months). New regime. TDS ₹8L.

Slab income: ₹40L + ₹2L + ₹3L (other STCG added to slab) = ₹45L. Less ₹75K std ded = ₹44.25L taxable.
Slab tax (new regime): 0+20K+40K+60K+80K+100K + 20.25L × 30% = ₹9,07,500.
Equity LTCG: (₹5L − ₹1.25L) × 12.5% = ₹46,875.
Total before cess: ₹9,07,500 + ₹46,875 = ₹9,54,375. Cess 4% = ₹38,175.
Total tax = ₹9,92,550. Less TDS ₹8L = Net payable ₹1,92,550.

Why total tax differs from naive estimates: With salary ₹40L the user might expect tax ~₹6L, but combining with FD interest and other STCG pushes ₹3L of income into the 30% bracket. Plus equity LTCG attracts its own 12.5% tax. The waterfall view in the calculator above shows exactly where each rupee of tax comes from.

Frequently Asked Questions

Income tax for FY 2025-26 is computed in stages: total all income heads (salary, house property, capital gains, other), apply standard deduction and (if old regime) Chapter VI-A deductions, compute slab tax on the remaining taxable income, apply Section 87A rebate if eligible, add tax on special-rate income (LTCG/STCG), apply surcharge if income exceeds ₹50 lakh, and finally add 4% health and education cess. Net tax payable equals total tax minus TDS already deducted.

Slab-rate income includes salary, house property, business income, and other sources — taxed using regime-specific slabs (5%/10%/15%/20%/25%/30%). Special-rate income is taxed at fixed rates regardless of slab — LTCG on listed equity at 12.5% above ₹1.25L (Section 112A), STCG on listed equity at 20% (Section 111A), LTCG on other assets at 12.5% (Section 112). Section 87A rebate applies only to slab-rate income, not to special-rate income.

Section 87A provides tax rebate to resident individuals. Under the new regime for FY 2025-26: rebate up to ₹60,000 if total taxable income (excluding special-rate income) does not exceed ₹12,00,000. Marginal relief applies between ₹12L and ~₹12.7L. Under the old regime: rebate up to ₹12,500 if income does not exceed ₹5,00,000. Capital gains taxed under Sections 111A and 112A do not qualify for the rebate even if total income is within the threshold.

Surcharge applies when total taxable income exceeds ₹50 lakh. Rates: 10% above ₹50L, 15% above ₹1cr, 25% above ₹2cr. Old regime adds a 37% bracket above ₹5cr; new regime caps at 25%. Surcharge is computed on tax (before cess) and is subject to marginal relief at each boundary to ensure additional tax does not exceed additional income. Surcharge rates differ for income types — special-rate capital gains have separate surcharge tables.

Standard deduction is available to salaried employees and pensioners. Under the new regime for FY 2025-26: ₹75,000 (raised by Budget 2024 from ₹50,000). Under the old regime: ₹50,000 (unchanged since FY 2019-20). The deduction is automatic — no documentation required. Family pension recipients can claim ₹25,000 or one-third of pension whichever is lower under both regimes. Non-salaried taxpayers do not get the standard deduction.

Capital gains rates from 23 July 2024 onwards: Listed equity LTCG (held over 12 months) under Section 112A — 12.5% above ₹1.25 lakh annual exemption. Listed equity STCG (held under 12 months) under Section 111A — 20% flat. Property/gold/debt mutual fund LTCG (held over 24 months) under Section 112 — 12.5% with no indexation. Other STCG — taxed at slab rates. Capital gains tax is not subject to Section 87A rebate.

For let-out property, gross rental income minus 30% standard deduction (Section 24(a)) minus home loan interest (Section 24(b)) gives net house property income. For self-occupied property, only home loan interest deduction up to ₹2 lakh is allowed (old regime only — new regime does not allow this for self-occupied). House property loss can be set off against other income up to ₹2 lakh; balance carries forward for 8 years.

TDS (Tax Deducted at Source) is tax deducted by the payer (employer for salary, bank for FD interest) and deposited with the government on your behalf — appears in Form 26AS and AIS. Self-assessment tax is the balance you pay yourself before filing ITR if total tax exceeds TDS plus advance tax. If TDS exceeds your total tax liability, you get a refund. The calculator subtracts TDS to show net payable or refundable amount.

No. This calculator is designed for individuals with salary, house property, capital gains, and other income (interest/dividend). Business or professional income — including freelance, consulting, F&O trading, intraday, partnership share, and crypto — requires different treatment. Use Patron's Section 44ADA Calculator for presumptive professional income, or the ITR Form Selector to determine whether ITR-3 or ITR-4 applies. Consult a CA for complex cases.

No. Budget 2026 (presented February 2026) made no changes to slab rates, Section 87A rebate amounts, surcharge tiers, or cess. Both old and new regime slabs continue unchanged for FY 2026-27. The Income Tax Act 2025 effective 1 April 2026 retains the substantive tax structure with renumbered references. Section 115BAC moves to Section 202, but rates and thresholds remain the same. The FY toggle in the calculator reflects this — math is identical for both years.

No. NRI, RNOR, and foreign income cases involve residential status determination under Section 6, DTAA benefits, foreign tax credit via Form 67, Schedule FA disclosure, and Black Money Act compliance — none of which this calculator handles. The calculator routes such cases to the ITR Form Selector tool and CA consultation. Resident Indians with foreign company ESOPs/RSUs also need Schedule FA disclosure regardless of residency status.

New regime has lower slab rates (0/5/10/15/20/25/30% with ₹4L exemption) but disallows most deductions like 80C, 80D, HRA, and self-occupied home loan interest. Standard deduction is ₹75,000. Section 87A rebate up to ₹60K makes income up to ₹12L tax-free. Old regime has higher slabs (5/20/30%) but allows all Chapter VI-A deductions, HRA, home loan interest. To compare both, use Patron's Old vs New Regime Calculator.

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