Income Tax Calculator.
Stop overpaying the government. Calculate your liability for FY 2025-26 and discover elite investment strategies to protect your hard-earned wealth.
Booting Tax Engine...
Elite Tax-Saving Roadmap
Public Provident Fund (PPF)
The ultimate safe haven. 15-year lock-in with EEE tax status (Exempt-Exempt-Exempt).
ELSS Mutual Funds
Equity exposure with the shortest lock-in (3 years). Perfect for long-term wealth builders.
National Pension System (NPS)
Secure your retirement and get an additional ₹50,000 deduction over the 80C limit.
Health Insurance
Protect your family and save tax on premiums paid for self, spouse, and parents.
What is Income Tax?
Income tax is a direct tax paid to the Government of India based on your annual earnings. Whether you are a salaried professional, a software architect, or a business founder, your income is categorized into Five Heads of Income: Salary, House Property, Business/Profession, Capital Gains, and Other Sources.
Note: Tax is calculated on "Net Taxable Income"—which is your gross income minus eligible deductions and exemptions under the Income Tax Act, 1961.
How Tax is Calculated
The Calculation Workflow
- STEP 01Summate Gross Total Income from all sources.
- STEP 02Subtract Exemptions (like HRA, LTA) for Old Regime only.
- STEP 03Subtract Standard Deduction (₹75,000 for New Regime).
- STEP 04Subtract Chapter VI-A Deductions (80C, 80D, 80TTA).
- STEP 05Apply relevant Slab Rates to the remaining Taxable Income.
- STEP 06Add 4% Health & Education Cess on the resulting tax amount.
New Regime Slabs 2026
| Income Range (₹) | Tax Rate (%) |
|---|---|
| 0 - 3,00,000 | Nil |
| 3,00,001 - 7,00,000 | 5% |
| 7,00,001 - 10,00,000 | 10% |
| 10,00,001 - 12,00,000 | 15% |
| 12,00,001 - 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Legal FAQ Hub
1. What is the standard deduction for FY 2025-26?
For salaried individuals and pensioners, the standard deduction has been increased to ₹75,000 under the New Tax Regime, while it remains ₹50,000 under the Old Regime.
2. Which tax regime is better: Old or New?
The New Tax Regime is the default and usually better if you have few investments. The Old Regime is beneficial only if your total deductions (80C, 80D, HRA, etc.) exceed approximately ₹3.75 - ₹4 Lakhs.
3. Is income up to ₹7 Lakhs tax-free in India?
Under the New Tax Regime, Section 87A provides a rebate that makes the effective tax zero for taxable income up to ₹7 Lakhs. With the standard deduction, salaried individuals essentially pay zero tax up to ₹7.75 Lakhs.
4. What are the Section 80C limits for 2026?
Under the Old Regime, the limit is ₹1.5 Lakhs per annum. Note that 80C deductions are completely unavailable under the New Tax Regime.
5. Can I switch between New and Old regimes every year?
Salaried individuals without business income can choose the regime every year at the time of filing. Those with business or professional income can only switch once in a lifetime.
6. What is the tax rate on Long-Term Capital Gains (LTCG) in 2026?
LTCG on listed equity shares and units of equity-oriented mutual funds is taxed at 12.5% for gains exceeding ₹1.25 Lakh per financial year.
7. How much tax do I pay on Virtual Digital Assets (Crypto)?
Income from the transfer of any virtual digital asset (Crypto/NFTs) is taxed at a flat rate of 30%. No deductions or loss set-offs are allowed against this income.
8. What is Section 80D and how much can I claim?
Section 80D allows deductions for health insurance premiums. You can claim up to ₹25,000 for self/family and an additional ₹50,000 for senior citizen parents.
9. Does the calculator include the 4% Health and Education Cess?
Yes, the HQCalc engine automatically adds the 4% Cess on the sum of your calculated income tax and surcharge.
10. How is HRA exemption calculated?
HRA exemption is the minimum of: 1. Actual HRA received, 2. 50% of salary (Metros) or 40% (Non-metros), or 3. Rent paid minus 10% of salary.
11. What is the surcharge rate for high-income earners?
Surcharge rates vary from 10% (income > ₹50L) to 25% (income > ₹5Cr under New Regime). The maximum surcharge under the New Regime is capped at 25%.
12. Can I claim home loan interest as a deduction?
Under Section 24(b) of the Old Regime, you can claim up to ₹2 Lakhs for interest paid on a self-occupied property. This is generally not available in the New Regime.
13. What is Section 87A Rebate?
It is a tax rebate that reduces your tax liability to zero if your total taxable income stays below the specified threshold (₹5L for Old, ₹7L for New Regime).
14. Is Leave Travel Allowance (LTA) taxable?
LTA is exempt twice in a block of four years for domestic travel expenses under the Old Regime. It is fully taxable under the New Tax Regime.
15. What is the tax implication for NRIs?
NRIs are taxed on income earned or accrued in India. While they get slab benefits, they are not eligible for certain deductions like senior citizen benefits or PPF investments.
16. How do I calculate tax on a 'Gift'?
Gifts from non-relatives exceeding ₹50,000 in value per year are taxed as 'Income from Other Sources' at your applicable slab rates.
17. What is the additional deduction for NPS?
Under Section 80CCD(1B) of the Old Regime, you can claim an additional deduction of ₹50,000 for NPS contributions over and above the ₹1.5L limit of 80C.
18. How are dividends from mutual funds taxed?
Dividends are added to your total income and taxed according to your applicable income tax slab rate.
19. What is Marginal Relief in income tax?
Marginal relief ensures that the increase in tax (including surcharge) is not more than the increase in income that triggered the surcharge.
20. Is HQCalc's income tax calculator accurate for AY 2026-27?
Yes, our engine is updated with the latest Finance Act 2025 provisions to ensure accurate estimates for the current assessment year. Always verify with your Form 26AS.
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