Income Tax Calculator
Full India income tax calculation — salary, house property, business and other income; Chapter VI-A deductions; Section 87A rebate with marginal relief; surcharge with marginal relief; and 4% Health & Education Cess.
Income
Deductions (both regimes)
Pre-paid tax
Total tax liability (incl. surcharge & cess)
| Gross total income | ₹15,00,000 |
| Standard deduction | ₹75,000 |
| Other deductions (Chapter VI-A) | ₹0 |
| Net taxable income | ₹14,25,000 |
| Tax on slabs | ₹93,750 |
| Section 87A rebate | -₹0 |
| Health & Education Cess (4%) | ₹3,750 |
| TDS + advance tax paid | ₹0 |
| Net payable | ₹97,500 |
Slab breakdown
| ₹0 – ₹4,00,000 @ 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 @ 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 @ 10% | ₹40,000 |
| ₹12,00,000 – ₹16,00,000 @ 15% | ₹33,750 |
How income tax is calculated
Indian income tax follows a fixed sequence: add up your income, subtract deductions, apply slab rates, subtract any rebate you qualify for, add surcharge if your income is high enough, then add cess. This calculator runs through every step for the regime and financial year you select.
Tax Payable = Slab Tax − 87A Rebate + Surcharge + 4% Cess
Gross Total Income adds up salary, house property income (rent, net of a statutory 30% deduction), business income, and other sources like interest. Deductions depend heavily on regime: the New regime allows only a standard deduction and employer NPS contributions, while the Old regime additionally allows Section 80C, 80D, HRA exemption, home loan interest, and several other heads.
Tax is then computed on the applicable slab rates for your regime and age category, before Section 87A rebate can bring your tax to zero if your taxable income is low enough. Surcharge applies only above ₹50,00,000 of taxable income, and a flat 4% cess is added last on top of tax plus surcharge.
Frequently asked questions
What's the difference between the Old and New tax regimes?
The New regime has lower slab rates and a higher standard deduction (₹75,000), but disallows almost every deduction except a standard deduction and employer NPS contributions. The Old regime has higher slab rates but allows Section 80C investments, HRA exemption, health insurance premiums, home loan interest, and more. Which one is cheaper depends entirely on how many deductions you can actually claim.
What is Section 87A rebate?
It's a tax credit that reduces your tax to zero if your net taxable income is at or below a threshold: ₹12,00,000 under the New regime (rebate up to ₹60,000) or ₹5,00,000 under the Old regime (rebate up to ₹12,500). It only applies to residents, not NRIs, and only to tax on regular slab-rate income, not on capital gains taxed at special rates.
What happens if my income is just above the ₹12,00,000 rebate limit?
The New regime includes marginal relief so you're never worse off for crossing the threshold by a small amount: your tax is capped at the amount by which your income exceeds ₹12,00,000, so someone earning ₹12,10,000 pays at most ₹10,000 in tax, not a sudden jump to full slab tax. This calculator applies that relief automatically.
What is surcharge, and when does it apply?
Surcharge is an additional charge on your income tax itself (not on your income), applying only above ₹50,00,000 of taxable income. It starts at 10% and rises in steps up to 37% under the Old regime, capped at 25% under the New regime. Like the 87A rebate, surcharge has its own marginal relief at each threshold, so crossing a surcharge band by a small amount doesn't create a sudden jump.
What is Health & Education Cess?
A flat 4% add-on charged on your income tax plus surcharge, in both regimes, with no income limit. It funds health and education initiatives and is applied as the final step of the calculation, after the 87A rebate and surcharge.
Which deductions can I claim under the Old regime?
Common ones include Section 80C (life insurance, PPF, ELSS, EPF) and your own 80CCD(1) NPS contribution, which together share one combined ₹1,50,000 cap, plus an additional ₹50,000 under 80CCD(1B) for extra voluntary NPS contributions. Also 80D (health insurance premiums), 80E (education loan interest, no cap), 80TTA/80TTB (savings account interest), Section 24(b) (home loan interest on a self-occupied property, up to ₹2,00,000), Section 80EEA (additional home loan interest for first-time affordable-housing buyers, up to ₹1,50,000 on top of 24(b)), 80G (donations), and the HRA exemption if you pay rent. This calculator includes fields for each of these under the Old regime.
Does this calculator handle NRIs?
Yes. Selecting Non-Resident under Residential Status disables the Section 87A rebate, which by law is only available to residents, while keeping the rest of the calculation the same.