How This Income Tax Calculator Works — FY 2025-26 (AY 2026-27)
Enter your taxable income, pick your taxpayer category, and the calculator produces a complete slab-wise working — not just a single tax figure. You see exactly how much of your income falls in each slab, the tax on each portion, the surcharge band you land in, the 4% health and education cess, and any rebate or marginal relief you qualify for. It works for resident individuals across age groups, non-residents, HUFs, LLPs and partnership firms, and every category of company.
Under the new regime for FY 2025-26, the slabs run from nil (up to ₹4 lakh) to 30% (above ₹24 lakh), and the Section 87A rebate of up to ₹60,000 wipes out tax entirely for incomes up to ₹12 lakh. Cross that line by a small margin and marginal relief steps in, capping your tax at the amount by which income exceeds ₹12 lakh — the calculator applies both automatically, which is where most manual computations go wrong.
The old regime remains available on opt-in, with its familiar ₹2.5 lakh exemption and 5/20/30 slab ladder — usually worthwhile only if your deductions (80C, home loan interest, HRA) are substantial. On the corporate side, the calculator covers the 25% and 30% domestic rates, the Section 115BAA concessional rate of 22%, the 15% Section 115BAB rate for new manufacturers, and foreign companies, with the correct surcharge tier and MAT/AMT flags in each case.
We built this tool the way we run computations for clients at PGA & Co. — every rupee traceable to a slab and a section. Once you know your annual liability, check whether you need to pay it in instalments with our Advance Tax Calculator, and if the regime choice is not obvious for your mix of income and deductions, that is precisely the kind of question our tax team answers every week.
Tax Inputs
"Calculate Tax" to see results.
Frequently Asked Questions
Which tax regime should I choose for FY 2025-26?
The new regime is the default and wins for most taxpayers with limited deductions, since income up to ₹12 lakh is effectively tax-free after the Section 87A rebate. The old regime can still win if your combined deductions — 80C investments, home loan interest, HRA exemption, 80D premiums — are large relative to income. The reliable approach is to compute tax both ways on your actual numbers; this calculator lets you switch regimes and compare in seconds.
Is income up to ₹12 lakh really tax-free under the new regime?
Yes, for resident individuals in FY 2025-26. The slab-computed tax on ₹12 lakh is ₹60,000, and the Section 87A rebate cancels it in full. Salaried taxpayers also get the ₹75,000 standard deduction, taking the effective tax-free salary to about ₹12.75 lakh. Note that income taxed at special rates, such as capital gains, does not get the rebate.
Do NRIs get the Section 87A rebate?
No. The Section 87A rebate is available only to resident individuals. A non-resident with ₹10 lakh of Indian taxable income pays full slab tax on it, while a resident with the same income pays nothing under the new regime. This is one of the most common surprises in NRI tax computations, and the calculator handles residency status correctly.
How does surcharge work for individuals at higher incomes?
Surcharge is levied on the tax amount, not on income: 10% where total income exceeds ₹50 lakh, 15% above ₹1 crore, and 25% above ₹2 crore. The new regime caps surcharge at 25%, whereas the old regime applies 37% above ₹5 crore. Marginal relief ensures crossing a threshold by a small amount cannot cost you more than the excess income itself.
When do MAT and AMT apply to companies and LLPs?
Minimum Alternate Tax applies when a company's regular tax falls below 15% of book profit, and Alternate Minimum Tax applies similarly to LLPs claiming specified deductions, at 18.5% of adjusted total income. Companies that opt for Section 115BAA or 115BAB are outside MAT entirely. The calculator flags potential MAT/AMT exposure whenever the computed tax looks low relative to these floors.