Income Tax Calculator FY 2025-26 | FinTax
About FTaxCo Income Tax Calculator
Calculating income tax can be complex, especially when considering deductions, exempt allowances, and income from various sources. For those unfamiliar with the Income Tax Act, it can be challenging to calculate tax liabilities based on applicable slab rates. That's where the FTaxCo Income Tax Calculator comes in. It simplifies manual calculations without the need for in-depth knowledge of tax laws.
The FTaxCo Income tax calculator is a simple and easy-to-use online tool designed to calculate your tax liability in detail, according to the provisions and rules of the Income Tax Act 1961. It enables you to compare your tax liability between the old and new tax regimes, making choosing the more beneficial option easier. It's especially useful if you do not understand the section, provisions and technical aspects of the government's income tax filing portal. Our calculator has been updated in line with tax changes proposed in the Union Budget 2025. You can plan your taxes and tax liability for relevant financial years more effectively and make informed financial decisions.
How to Use the Tax Calculator
Following are the steps to use the tax calculator:
- Step 1: Choose the financial year for which you want your taxes to be calculated.
- Step 2: Select your age accordingly. Tax liability under the old regime differs based on the age groups.
- Step 3: Click on 'Continue'
- Step 4: Enter your salary, i.e. salary before deducting various exemptions such as HRA
- Step 5: Along with taxable salary, you must enter other details such as interest income, rental income, interest paid on home loan for rented, and interest paid on loan for self-occupied property.
- Step 6: For Income from Digital Assets, enter the net income (Sale consideration (-) Cost of Acquisition).
- Step 7: Click on 'Continue' again.
- Step 8: You can also enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA, if applicable to your case.
- Step 9: Click on 'Calculate' to calculate your tax liability. You will be able to compare the old and new tax regimes.
Income Tax Slab Rates FY 2025-26
The income tax slab rates for both old and new regimes for FY 2024-25 and FY 2025-26 are given below:
New Tax Regime (FY 2025-26)
| Income Tax Slabs | Income Tax Rates |
|---|---|
| Up to Rs. 4 lakh | NIL |
| Rs. 4 lakh - Rs.8 lakh | 5% |
| Rs. 8 lakh - Rs.12 lakh | 10% |
| Rs.12 lakh - Rs.16 lakh | 15% |
| Rs.16 lakh - Rs. 20 lakh | 20% |
| Rs. 20 lakh - Rs. 24 lakh | 25% |
| Above Rs. 24 lakh | 30% |
Note: No income tax for income up to Rs. 12 Lakhs. This is because of a rebate applicable to the new regime, which is Rs. 60,000. But rebates are not applicable for special tax income.
Old Tax Regime
| Income Slabs | Income Tax Rates |
|---|---|
| Up to Rs. 2.5 lakh | NIL |
| Rs. 2.5 lakh - Rs. 5 lakh | 5% |
| Rs. 5 lakh - Rs. 10 lakh | 20% |
| Above Rs. 10 lakh | 30% |
Surcharge and Cess
If your income exceeds a certain threshold, you will incur additional taxes on top of the existing rates. This additional tax specifically targets high-income earners. The surcharge rates are as follows:
- Income between Rs. 50 lakh to Rs. 1 crore: 10% surcharge
- Income between Rs. 1 crore to Rs. 2 crore: 15% surcharge
- Income between Rs. 2 crore to Rs. 5 crore: 25% surcharge
- Income above Rs. 5 crore: 37% surcharge (25% under new regime)
Note: The highest surcharge rate of 37% has been reduced to 25% under the new tax regime.
Additional Health and Education cess at the rate of 4% will be added to the income tax liability.
Rebate Limits
When the total taxable income of the taxpayer is within a specified limit, rebate can be claimed, making their tax liability zero. The specified limits are given below:
| Regime Chosen | Financial year | Limit (Rs.) |
|---|---|---|
| Old Regime | Any financial year | 5 lakhs |
| New Regime | FY 2024-25 | 7 lakhs |
| New Regime | FY 2025-26 | 12 lakhs* |
*From FY 2025-26, rebate is not applicable for income charged under special rates. At any financial year, rebate is not applicable on long term capital gains under section 112A.
How to Calculate Income Tax
To calculate Income tax, include income from all sources. Include:
Income from salary = Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance.
Some components of your salary are exempt from tax, such as telephone bill reimbursement and leave travel allowance. If you receive HRA and live on rent, you can claim an exemption on HRA.
On top of these exemptions, a standard deduction of Rs. 50,000 is available under the old regime, and Rs. 75,000 under the new regime.
Example Calculation
Let's understand income tax calculation under both old and new tax regimes by way of an example:
Rahul receives a Basic Salary of Rs 1 lakh per month, HRA of Rs 50,000, Special Allowance of Rs 21,000 per month, LTA of Rs 20,000 annually. Rahul pays a rent of Rs 40,000 and lives in Delhi.
| Nature | Amount | Exemption/Deduction | Taxable Income (Old regime) | Taxable Income (New regime) |
|---|---|---|---|---|
| Basic Salary | 12,00,000 | - | 12,00,000 | 12,00,000 |
| HRA | 6,00,000 | 3,60,000 | 2,40,000 | 6,00,000 |
| Special Allowance | 2,52,000 | - | 2,52,000 | 2,52,000 |
| LTA | 20,000 | 12,000 (bills submitted) | 8,000 | 20,000 |
| Standard Deduction | - | 50,000 | 50,000 | 75,000 |
| Gross Total Income from Salary | 16,50,000 | 19,97,000 | ||
Deductions Available (Old Regime)
| Nature | Maximum Deduction | Eligible investments/expenses | Amount claimed |
|---|---|---|---|
| Section 80C | Rs.1.5 lakh | PPF, ELSS, LIC, EPF | Rs.1.5 lakh |
| Section 80D | Rs 25,000 for self Rs 50,000 for parents | Medical insurance premium | Rs 12,000 |
| Section 80TTA | Rs.10,000 | Savings account interest | Rs. 8,000 |
Benefits of Using FTaxCo Income Tax Calculator
Using our online Income tax calculator offers several benefits such as:
- Accuracy: Income tax calculator calculates your tax liability accurately eliminating any potential errors that result from calculating the tax liability manually.
- Speed: The Income tax calculator is a tool which calculates your tax liability swiftly within few seconds and can be used anytime and anywhere.
- User-Friendly: The Income tax calculator is a very user-friendly tool. Simply input your income and deduction details to accurately calculate your tax liability.
- Financial Planning: Understanding your tax liability in advance is essential for effective financial planning. By knowing your potential tax obligations, you can allocate your budget wisely and invest in tax-saving instruments like ELSS, PPF, etc. to reduce the tax liability.
Frequently Asked Questions
How to use FTaxCo tax calculator to calculate taxes online?
You can use FTaxCo tax calculator to calculate your taxes online. You just need to enter your income and investment or deduction details and it will calculate your tax liability accurately.
Do I need to file ITR if my income is below exemption limit?
If the income of an individual is below the basic exemption limit then he is not required to file income tax returns. However, if your income is less than exemption limit and want to claim the income tax refund then they have to file their ITR.
Does the calculator compute TDS?
No, the income tax calculator does not compute the Tax Deducted at Source (TDS). However, it calculates your tax liability for the assessment year. You can use TDS calculator to calculate TDS.
How does the calculator handle surcharge and cess?
You just have to input your income and deduction details in the Income tax calculator and it will calculate your tax liability along with surcharge and cess. It will also calculate rebate if it is applicable to you.
What's the difference between Old and New tax regimes?
The old tax regime allows you to claim exemptions and deductions (e.g., HRA, 80C investments) to reduce your taxable income. The new tax regime offers lower tax rates but eliminates most exemptions and deductions. The calculator compares your tax liability under both to help you decide the best option.
Can the calculator handle multiple income sources?
Yes, the Income Tax Calculator can calculate income from multiple sources such as salary, interest income, rental income, and capital gains. Simply input all the income details to get an accurate tax calculation.
How accurate is FTaxCo Income Tax Calculator?
Yes, the FTaxCo Online Income Tax Calculator is one of the most accurate tax calculation tools available. It complies with all the provisions, sections, and rules of the Income Tax Act, 1961, helping you calculate your tax liability accurately and effectively for the relevant financial year.
Disclaimer: The FTaxCo Online Income Tax Calculator is highly accurate and effective in calculating your tax liability, as it fully complies with the rules and regulations of the Income Tax Act, 1961. It helps you estimate your tax for the relevant financial year with ease. However, while the calculator is helpful, you will still need to file your income tax return through the official income tax department e-filing portal.
About FTaxCo
FTaxCo offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. FTaxCo serves thousands of happy customers, CAs & tax experts & businesses across India.
Filing Income Tax Returns (ITR) is made easy with FTaxCo platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
Save taxes with FTaxCo by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP.
.png)
.png)
.png)
No comments: