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Income Tax Calculator FY 2025-2026

Calculate your income tax anywhere, anytime, accurately.

*Income tax calculator for below age 60

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Comprehensive Guide: Understanding Income Tax in India

Whether you are a salaried individual, business owner, or self-employed, understanding how income tax works is crucial for smart financial planning.
Below you'll find essential knowledge, expert guidance, and visual insights to help you make informed tax decisions.

What is Income Tax?

Income tax is a direct tax paid annually by individuals and entities on the income they earn. The rate depends on age, income, and chosen tax regime.
Who should pay? All residents earning above the exemption limit, including salaried employees, freelancers, senior citizens, and businesses.

Core Steps in Tax Calculation

  • Sum your annual income from all sources (salary, rent, business, capital gains).
  • Claim all eligible deductions (80C, 80D, HRA, etc.).
  • Select the regime (Old/New) that benefits you most.
  • Apply the relevant tax slab and add 4% Health & Education cess.

Tax Slabs: Old vs New Regime (FY 2025-26)

Note: Slabs and rates differ for senior/very senior citizens.

Old vs New Regime: Which Is Better?

Feature Old Regime New Regime
Deductions All Major Sections (80C, 80D, HRA, LTA) Limited (No 80C/80D)
Slab Complexity Higher Simpler, Fewer Exemptions
Who Should Choose? Investors & Savers Few Deductions, Higher Net Income

Tax Optimization Tips

  • Max out 80C (₹1,50,000): PPF, EPF, ELSS, NPS.
  • Utilize 80D for health insurance premiums (self & parents).
  • Claim HRA if living on rent and eligible.
  • Always compare tax under both regimes before finalizing.
  • File well before the July 31 deadline to avoid penalties.

How To File Your IT Return (Step-by-Step)

  1. Collect Documents: PAN, Aadhaar, Form 16, Form 26AS, bank/investment proofs.
  2. Log in to:
  3. Fill necessary details: Select the correct ITR form, enter incomes and deductions.
  4. Review, e-file, verify via Aadhaar OTP or EVC.
  5. Save the ITR-V acknowledgement for your record.

Income Tax FAQ

What is the current basic exemption limit?
₹2,50,000 under both regimes for under 60 years; ₹3,00,000 for senior citizens; ₹5,00,000 for those 80+.
Can I switch between old and new regime?
Salaried taxpayers can switch each year. Business owners must choose carefully, as switching is restricted.
How do I avoid common mistakes?
Double-check PAN/Aadhaar details, TDS credits, claim all actual deductions, and file within deadline.
Where do I pay tax dues?
Use the official e-Pay Tax page for advance or self-assessment tax.