(Updated as per latest Union Budget on 1st Feb 2025)
BT brings to you an easy-to-use tool that helps in calculating the tax payable on your income for FY 2025-26. It also lets you compare your tax liability under new tax regime and old tax regime.
Max contribution: 10% of Basic pay for FY within the overall 80C limit of Rs 1.5 lakhs
Any other Deduction u/s 80C
DEDUCTION - 80D
Premium for Self/Family
Limit: Rs 25,000 (if age <60 years), Rs 50,000 (if age >= 60 years)
Premium for Parents
Limit: Rs 25,000 (if age <60 years), Rs 50,000 (if age >= 60 years)
Preventive Health check-ups for self/family
Limit: Rs 5000 (within the overall deduction limit)
Preventive Health Check-ups for Parents
Limit: Rs 5000 (within the overall deduction limit)
INTEREST ON LOANS
Interest on Housing Loan - 80EEA
Limit: Rs 1,50,000
Interest on Electric Vehicle Loan - 80EEB
Limit: Rs 1,50,000
Interest on Education Loan - 80E
No Upper Limit
CONTRIBUTION IN NPS
Add. Employee's Contrib. in NPS - 80CCD(1B)
Additional employee contribution in NPS. Limit: Rs 50,000
Employers contribution in NPS - 80CCD(2)
Employer’s contribution towardsNPS account. Limit: 10% of Basic pay + DA
Other Deductions
Contribution to the Agniveer Corpus Fund - 80CCH(2)
Interest from Deposits -80TTA/ 80TTB
Deduction on interest on Savings account like bank, post office, etc. Section 80TTB is applicable for senior citizens. 80TTA Limit: Rs 10000, 80TTB Limit: Rs 50000
For disabled person - 80U
Limit: Rs 75,000 for persons with disabilities and Rs 1,25,000 for persons with severe disabilities
Royalty Income - 80QQB
Limit: Lower of Rs 3 lakhs or actual royalty received
Income tax is a mandatory levy on individual and entity earnings. Individuals, Hindu Undivided Families (HUFs),
businesses, cooperative societies, trusts, and other organizations must comply with income tax regulations.
Taxable income is calculated based on slabs. The taxable income is derived by subtracting exemptions, deductions,
and rebates from the gross income. An Income Tax Calculator simplifies these calculations.
The Income Tax Calculator helps in determining tax payable for a financial year. For FY 2025-26, enter details such
as age, residential status, income, investments in tax-saving instruments and income from other sources. The
calculator then computes the tax liability after accounting for applicable exemptions, deductions, and rebates.
To calculate income tax, you need to include income from all sources, which include:
Income from Salary: Salary paid by your employer.
Income from House Property: Add any rental income or include interest paid on a home loan.
Income from Capital Gains: Income from the sale or purchase of shares or property, etc.
Income from Business/Profession: Income from freelancing, business, or professional activities.
Income from Other Sources: Interest income from savings accounts, fixed deposits, and bonds.
Understanding Income Tax Exemptions in India
Calculating your income tax in India can be simplified by knowing the various exemptions available. Here’s a quick guide:
Section 87A: If your taxable income is upto ?5 lakhs, you can get a tax rebate of ?12,500. This essentially means that you won’t have to pay any tax if your income is within this threshold. Under the New Tax regime, if the taxable income is upto ?12 lakhs, you get a rebate of ?60000.
Section 80C: You can save up to ?1.5 lakh in taxes by investing in specific instruments like tax-saver fixed deposits, public provident funds, national savings certificates, unit-linked insurance plans, equity-linked savings schemes etc.
Section 80CCD (1B): Contributions to the National Pension System can get you an additional tax exemption of up to ?50,000.
Section 80D: Medical insurance premiums are tax-deductible up to ?25,000. For senior citizens, this limit is increased to ?50,000.
Section 80G: Donations to charitable organizations are fully exempt from tax, making your philanthropy efforts rewarding for both you and society.
Section 80E: If you have taken an education loan, the interest paid on it is completely tax-free for up to eight years.
Section 80TTA/80TTB: Interest income from savings accounts gets a tax waiver of up to ?10,000. For senior citizens, interest income up to ?50,000 is tax-exempt under Section 80TTB.
Section 80GG: Rent paid for your house is eligible for tax exemption, provided you are not receiving house rent allowance (HRA) from your employer.
By leveraging these sections, you can effectively reduce your taxable income and save more. Always consult with a financial advisor to ensure you’re taking full advantage of available exemptions.
The Income Tax Calculator is an online tool that helps you estimate your taxes based on your income,
updated with the latest changes from the Union Budget 2025-26.
For calculating the Income tax, you need to fill the below details
Basic details like age, residential status.
Income details like basic salary, interest income, income from house property, capital gains, etc.
Exemptions details like house rent allowance (HRA), leave travel allowance (LTA), education allowance, etc.
Deduction details like life insurance premiums, public provident fund, ELSS, health insurance premiums, interest on housing loan, contribution in NPS, etc.
Based on the inputs, the income tax calculator calculates the tax liability for different income slabs. The user can compare his tax liability under both old regime and new regime. This helps him in deciding which tax regime he should opt.
How much tax will be deducted from my salary?
Taxes will be deducted based on the applicable tax slabs, which can be either the old regime or the new regime.
New Regime Tax Slabs:
Income below ?4 lakhs: No tax will be deducted.
Income between ?4 lakhs and ?8 lakhs: 5% tax will be deducted.
Income above ?8 lakhs: The tax rate increases as your income rises.
Slabs
Old Tax Regime
< 60 years
>=60 to <80 years
>= 80 years
?0 - ?2,50,000
NIL
NIL
NIL
?2,50,001 - ?3,00,000
5%
NIL
NIL
?3,00,001 - ?5,00,000
5%
5%
NIL
?5,00,001 - ?6,00,000
20%
20%
20%
?6,00,001 - ?7,50,000
20%
20%
20%
?7,50,001 - ?9,00,000
20%
20%
20%
?9,00,001 - ?10,00,000
20%
20%
20%
?10,00,001 - ?12,00,000
30%
30%
30%
?12,00,001 - ?12,50,000
30%
30%
30%
?12,50,001 - ?15,00,000
30%
30%
30%
>?15,00,000
30%
30%
30%
Slabs
New Tax Regime (All age groups)
?0 - ?4,00,000
NIL
?4,00,001 - ?8,00,000
5%
?8,00,001 - ?12,00,000
10%
?12,00,001 - ?16,00,000
20%
?16,00,001 - ?24,00,000
25%
>?24,00,000
30%
Does everyone have to file their income tax returns?
Filing Income Tax Return (ITR) is mandatory if an individual's taxable income exceeds the basic exemption limit.
Taxable income = Gross total income - Exemptions - Deductions
Gross total income includes earnings from various sources, such as salary, house property and capital gains. The basic exemption limit depends on the income tax regime chosen by the taxpayer when filing the ITR.
What are the deductions under the new tax regime?
Under the new tax regime, standard deduction benefit is available to salaried individuals and retirees (including family pensioners). A person who chooses the new tax regime for FY 2025–26 is qualified to take a standard deduction of ?75,000. Besides, the tax payer can avail deduction under Section 80CCD (2) (Employer’s contribution towards NPS account) and Section 80CCH (2) (contributions to the Agniveer Corpus Fund).
How much income is tax free?
In the old tax regime, individuals under 60 years are exempt up to ?2.5 lakhs, senior citizens (60-80 years) are exempt up to ?3 lakhs, and super senior citizens (over 80 years) are exempt up to ?5 lakhs. Under the new tax regime, the tax exemption limit for all individuals is ?4 lakhs
What are the deductions under 80C?
A maximum annual deduction of a total of ?1.5 lakh from the taxpayer`s gross income is allowed. Both individuals and HUFs are eligible to take advantage of this deduction. LLPs, corporations, and partnership firms are not eligible for this deduction.
Subsections 80CCC, 80CCD (1), 80CCD (1b), and 80CCD (2) are all included in Section 80C. This subsection includes payments made towards life insurance premiums, ELSS, government-sponsored plans such as the national pension system, PPF, NSC and others.
What if I have a home loan?
Under Section 24 of the Income Tax Act, you can deduct up to ?2 lakhs for interest on a home loan. For a selfoccupied property, the maximum deduction allowed is ?2 lakhs. This rule has been in effect since financial year 2018-19.
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