Is Section 87A rebate available for NRIs?

No. Rebate under Section 87A is available only to Resident Individuals. NRIs are not eligible regardless of income or tax regime.

How is residential status determined for income tax?

You are treated as a Resident if you stay in India for 182 days or more in the financial year, or 60 days in the current year plus 365 days in the preceding four years.

Is my salary data safe in this calculator?

Yes. All calculations happen locally in your browser. No salary or tax data is stored, logged, or transmitted to any server.

Salary Tax Calculator India FY 2025–26

Q: What is the standard deduction for salaried employees in FY 2025–26?

The standard deduction for FY 2025–26 is ₹75,000 and applies under both Old and New Tax Regime. It is deducted from gross salary before tax calculation.

What Is Income Tax on Salary in India?

This calculator helps you compute your final salary tax, refund eligibility, and take-home income under the New Tax Regime for FY 2025–26. Designed for Indian salaried employees—both Resident Individuals and Non-Resident Indians (NRIs) earning Indian-source salary—this free online calculator applies the latest New Regime tax slabs, the ₹75,000 standard deduction, surcharge, and 4% Health & Education Cess for FY 2025–26. Whether you earn ₹5 lakhs or ₹1 crore, get instant clarity on your exact tax position, refund eligibility, and net take-home salary in seconds. All calculations happen securely in your browser with zero data storage.

Why Salary Taxation Is Confusing

New Regime salary taxation confuses many Indian employees due to several valid reasons:

Multiple Salary Components & Variable Income: Your salary includes basic pay, dearness allowance (DA), special allowance (SA), house rent allowance (HRA), leave travel allowance (LTA), bonuses, incentives, and other components. All are taxable under the New Regime. Mid-year increments, job switches, and bonus variations further complicate calculations. You must aggregate ALL salary components for the entire financial year.

Misunderstanding TDS: Many employees think their monthly TDS deduction equals their final tax liability. In reality, TDS is just an advance payment. Your actual tax is calculated based on annual income, the ₹75,000 standard deduction, and applicable slab rates under New Regime. Due to the standard deduction, your real tax is often lower than TDS deducted, making you eligible for a refund—yet many miss claiming it by not filing ITR.

Constantly Changing Tax Rules: Income tax slabs and rules change annually. Surcharge percentages, cess rates, slab thresholds, and standard deduction amounts are updated every financial year. FY 2025–26 has lower New Regime slabs compared to previous years, resulting in significant tax savings.

Confusion Between Old and New Regime: From FY 2023–24, New Regime is the default choice for most salaried employees. New Regime offers lower tax slabs (0%, 5%, 10%, 15%, 20%, 25%, 30%) but doesn't allow deductions like Section 80C, 80D, 80G. Many employees don't realize they're automatically on New Regime and miss comparing with Old Regime benefits.

Residency Status Confusion: Your residency classification for tax purposes depends on specific criteria (days in India during the year), not where you currently live or your citizenship. Misclassifying residency (resident vs. NRI) can change your tax liability. NRIs are subject to the same New Regime slab rates as residents but cannot claim rebate under Section 87A.

Rebate Misunderstanding: Under New Regime, rebate under Section 87A provides full tax exemption (tax becomes ₹0) for residents with taxable income up to ₹12 lakhs. However, rebate is NOT available when taxable income exceeds ₹12 lakhs. This means high-income earners don't benefit from this rebate. NRIs cannot claim Section 87A rebate regardless of income.

Surcharge & Cess Surprise: High-income earners face surcharge (10%-37% on tax) and 4% cess based on income slabs. Many don't account for surcharge, leading to underestimation of total tax liability. For example, at ₹1 crore income, surcharge jumps to 15%, significantly increasing total tax.

How This Calculator Works

This calculator follows official Income Tax Act, 1961 rules for FY 2025–26 (Assessment Year 2026–27), applying the New Tax Regime (Section 115BAC) with strict accuracy.

Step 1: Determine Residency Status You're a Resident if you stayed in India for 182+ days in the financial year (April to March) OR 60+ days in the current year AND 365+ days in the preceding 4 years. Otherwise, you're Non-Resident (NRI). This classification determines which rebate benefits apply. Both Residents and NRIs use the same New Regime slab rates (0-4L 0%, 4-8L 5%, 8-12L 10%, 12-16L 15%, 16-20L 20%, 20-24L 25%, 24L+ 30%), but rebate under Section 87A is NOT available to NRIs.

Step 2: Aggregate Gross Salary Combine all salary components: basic pay, dearness allowance (DA), special allowance, house rent allowance (HRA), leave travel allowance (LTA), bonuses, incentives, commissions, and all other monetary benefits from all employers. If salary increased mid-year, include the higher amount for remaining months.

Step 3: Apply ₹75,000 Standard Deduction The standard deduction of ₹75,000 is automatically applied to gross salary. This deduction is mandatory under the New Regime for all salaried employees and requires NO documentation or proof. It's a benefit exclusively for salaried individuals; business owners don't receive it.

Taxable Income = Gross Salary – ₹75,000 Standard Deduction

Step 4: Apply New Regime Tax Slabs (FY 2025–26) New Regime Slab Rates (Section 115BAC): • ₹0–₹4L: 0% (no tax) • ₹4L–₹8L: 5% • ₹8L–₹12L: 10% • ₹12L–₹16L: 15% • ₹16L–₹20L: 20% • ₹20L–₹24L: 25% • Above ₹24L: 30%

Calculate income tax by applying these slab rates to your taxable income. No deductions (Section 80C, 80D, 80G) are allowed under New Regime—you pay tax on 100% of taxable income.

Step 5: Apply Rebate u/s 87A (Residents Only) Rebate u/s 87A provides full tax exemption (tax becomes ₹0) for residents whose taxable income does not exceed ₹12 lakhs. Key points: • Available ONLY to Resident Individuals, NOT NRIs • Applies when taxable income is ≤ ₹12,00,000 • If taxable income exceeds ₹12 lakhs, NO rebate is available, even if tax calculated is small • This rebate makes New Regime extremely beneficial for income up to ₹12L

Example: If taxable income is ₹12,50,000 (exceeds ₹12L limit), rebate is NOT available, and you pay full tax on the amount.

Step 6: Calculate Surcharge (for income above ₹50 lakhs) Surcharge is additional tax on the income tax calculated above, based on total income slabs: • Income up to ₹50L: 0% surcharge • ₹50L–₹1Cr: 10% surcharge on tax • ₹1Cr–₹2Cr: 15% surcharge on tax • ₹2Cr–₹5Cr: 25% surcharge on tax • Above ₹5Cr: 37% surcharge on tax

Applies to both Residents and NRIs. Under New Regime, surcharge is capped at 25%.

Step 7: Add 4% Health & Education Cess Cess is calculated as 4% of (Income Tax + Surcharge). Mandatory for all taxpayers. Non-negotiable and unavoidable.

Total Tax = Income Tax + Surcharge + Cess

Step 8: Credit TDS & Calculate Refund/Tax Due Total Tax Liability – (TDS Deducted + Advance Tax Paid) = Refund due (if positive) or Additional Tax payable (if negative)

File your ITR to claim the refund. Your employer deducted TDS based on estimated annual salary, but actual tax is calculated at year-end based on total income. Refund is common when your actual tax (after standard deduction) is lower than TDS deducted throughout the year.

Who Can Use This Calculator

Resident Individuals

Salaried employees working in India who spent 182+ days in India during the financial year (April to March). Eligible for progressive tax slabs, standard deduction (New: ₹75,000 | Old: ₹50,000), rebate u/s 87A, and Old Regime deductions if applicable.

Senior Citizens (60–79 years)

Resident individuals aged 60–79 enjoy higher exemption limits and better tax rates in the Old Tax Regime. Exemption limit increases from ₹2.5L to ₹3L. Benefit significantly by comparing Old vs. New Regime options.

Super Senior Citizens (80+ years)

Residents aged 80 and above receive maximum tax benefits in the Old Regime with exemption limit of ₹5L and the most favorable slab structure. Strongly recommended to use Old Regime.

Non-Resident Indians (NRIs)

Indian citizens or foreign nationals earning Indian-source salary while working abroad. Applies when you don't meet the resident criteria (less than 182 days in India). NRIs use progressive slabs (0-2.5L 0%, 2.5-5L 5%, 5-10L 20%, 10L+ 30%). Rebate under Section 87A is not available to NRIs. Surcharge and cess also apply. Separate rules apply for foreign-source income.

Job Switchers & Mid-Year Income Changes

Employees who changed jobs mid-year, received mid-year increments, or had variable compensation (bonuses, incentives, commissions). Simply enter your total annual salary from all sources and total TDS from all employers for accurate calculation.

Required Input Fields

This calculator requires only essential information to accurately compute your salary income tax. Keep your salary slip and Form 16 handy for reference.

Step 1: Your Status

Residency Status: Select "Resident" (182+ days in India) or "NRI" (less than 182 days)
Age Category (for Residents): Below 60 years, 60–79 years (Senior Citizen), or 80+ years (Super Senior). Age only affects Old Regime slabs (exemption limits).
Tax Regime (for Residents): Choose between New Regime (lower slabs, no deductions) or Old Regime (higher slabs, allows Section 80C/80D/80G deductions)

Step 2: Your Income

Gross Annual Salary (₹): Your total salary from all sources for the full financial year. Include basic pay, dearness allowance (DA), special allowance (SA), house rent allowance (HRA), leave travel allowance (LTA), bonuses, performance incentives, and any other monetary components. For mid-year increments or job changes, add the total from all employers.

Step 3: Tax Already Paid

Total TDS Deducted (₹): Total Tax Deducted at Source throughout the financial year. Check your latest salary slip or Form 16 (issued by your employer). This is the cumulative TDS from all employers if you switched jobs.
Advance Tax Paid (Optional): Only if you paid advance tax directly to the tax department. Leave blank if not applicable (most employees only have TDS).

📝 Section 80C/80D/80G Deductions (Old Regime Only)

If you select Old Regime, you can enter deductions for investments, medical insurance, and charitable donations in the Advanced section below. These are optional fields — use them only if you have qualifying deductions.

New Regime: No deductions allowed. Only standard deduction (₹75,000) applies.

Tax Regime Selection: Old vs. New

Your choice of tax regime significantly impacts your final tax liability. Neither regime is universally "better"—it depends on your deduction capacity and income level. Always calculate both and choose the one resulting in lower tax for your situation.

Old Tax Regime

✓ Advantages

• Section 80C: ₹1.5L deductions (insurance, PF, ELSS, FD, PPF, home loan principal, tuition fees)
• Section 80D: Medical insurance premiums for you and family
• Section 80G: Donations to approved charities
• Rebate u/s 87A up to ₹5L income
• Age-based benefits: Senior citizens get higher exemption (₹3L instead of ₹2.5L)

✗ Disadvantages

• Higher tax slabs (0%, 5%, 20%, 30%) compared to New Regime
• Requires proof/documentation of deductions
• Rebate u/s 87A limited to ₹5L income (₹12,500 max)

Best for: Individuals with ₹1L+ in deductible expenses (life insurance, medical insurance, investments)

New Tax Regime (Default)

✓ Advantages

• Lower tax slabs (0%, 5%, 10%, 15%, 20%, 25%, 30%)
• Simpler calculation: No deduction tracking required
• Higher rebate u/s 87A up to ₹12L income (full rebate, tax=₹0)
• More tax-efficient for lower to middle-income earners

✗ Disadvantages

• No Section 80C deductions allowed
• No medical insurance deductions
• No charitable donation deductions
• Cannot claim age-based exemption benefits

Best for: Individuals with minimal deductible expenses who want simpler calculations and benefit from lower tax rates

💡 How to Choose

1. Estimate your deductions: Add up life insurance, medical insurance, PF, investments, donations, etc.
2. Run both scenarios: Use this calculator to calculate tax under both Old and New regimes
3. Compare results: The regime with lower final tax is your choice for that financial year
4. Plan ahead: If you're below ₹50L income and have minimal deductions, New Regime is usually better. If you have ₹1L+ deductions, compare carefully.

Income Tax Slabs (FY 2025-26)

Resident - Old Regime (Below 60)

Up to ₹2.5L → 0%

₹2.5L–₹5L → 5%

₹5L–₹10L → 20%

Above ₹10L → 30%

Resident - New Regime (All Ages) — FY 2025–26

Up to ₹4L → 0%

₹4L–₹8L → 5%

₹8L–₹12L → 10%

₹12L–₹16L → 15%

₹16L–₹20L → 20%

₹20L–₹24L → 25%

Above ₹24L → 30%

Non-Resident Indian (NRI)

Progressive slabs on Indian-source income (0-2.5L 0%, 2.5-5L 5%, 5-10L 20%, 10L+ 30%)

No rebate u/s 87A available

Plus: applicable surcharge as per individual slabs (New Regime surcharge capped at 25%)

Surcharge & Health & Education Cess

Surcharge (Additional Tax on High Income)

Applied to income tax for residents based on income level (FY 2025-26):

Up to ₹50 lakh → 0% surcharge

₹50L–₹1Cr → 10% surcharge on tax

₹1Cr–₹2Cr → 15% surcharge on tax

₹2Cr–₹5Cr → 25% surcharge on tax

Above ₹5Cr → 37% surcharge on tax

Health & Education Cess

4% cess applied on (Income Tax + Surcharge) for all taxpayers. Mandatory and unavoidable.

Step-by-Step: How to Use This Calculator

1.Determine your residency status: You're Resident if you spent 182+ days in India during the financial year (April to March) OR 60+ days this year plus 365+ days in the preceding 4 years. If neither condition is met, you're Non-Resident (NRI). This determination is critical as it affects your entire tax calculation.
2.Select your tax regime: Old Regime allows deductions under Sections 80C, 80D, and 80G, ideal if you have investment capacity or health insurance. New Regime has lower tax slabs but no deductions, better if you have minimal deductible expenses. Compare both to see which gives lower tax.
3.If resident and below 60 years, enter your age group (Below 60, 60-79, or 80+): Age affects your tax slabs and exemption limits in the Old Regime. Senior citizens (60-79) get higher exemptions. Super seniors (80+) get even higher exemptions.
4.Enter your gross annual salary: Include basic salary, dearness allowance (DA), special allowance, house rent allowance (HRA), leave travel allowance (LTA), bonuses (annual, performance, or incentive), commissions, and all other monetary components. If you received a mid-year increment, include the higher salary for the remaining months.
5.Enter the total TDS deducted: Check your latest salary slip or Form 16 for cumulative TDS deducted throughout the financial year. This is the amount your employer has already paid to the government on your behalf.
6.Enter advance tax paid (optional): If you paid advance tax directly to the tax department, enter it here. Most salaried employees only have TDS, not advance tax.
7.For Old Regime, enter Section 80C, 80D, and 80G deductions if applicable: Section 80C includes life insurance premiums, provident fund (PF), ELSS mutual funds, fixed deposits, tuition fees, etc. (capped at ₹1.5 lakh). Section 80D covers medical insurance premiums. Section 80G covers donations to approved charities.
8.Click 'Calculate Tax' to get instant results: The calculator will show your taxable income, income tax, surcharge, cess, total tax liability, TDS credit, and final refund or additional tax due.
9.Review the detailed breakdown: Understand each component of your tax calculation. Use the explanation provided to verify the numbers match your expectations.
10.Plan your finances based on results: If a refund is due, file your ITR to claim it. If additional tax is due, budget for it or invest in Section 80C instruments if time permits (for Old Regime users).

Real-Life Examples

✓Raj, a 45-year-old software engineer, earns ₹25 lakhs annually with ₹3 lakhs TDS deducted by his employer. He's unsure if the TDS is correct and whether he'll receive a refund. Using this calculator with New Regime, he discovers his actual tax liability is ₹1.97 lakhs (after ₹75k standard deduction), making him eligible for a ₹1.03 lakh refund when he files ITR.
✓Priya switched jobs mid-year: first job earning ₹18 lakhs for 6 months (TDS ₹1.8L), second job earning ₹24 lakhs for 6 months (TDS ₹3.2L). Total salary is ₹42 lakhs. She wonders how to calculate tax with two employers. This calculator shows her combined annual tax liability is ₹3.97 lakhs (after standard deduction), and combined TDS of ₹5L makes her eligible for ₹1.03L refund.
✓Vikram, a 62-year-old senior citizen, earns ₹8 lakhs annually. He selects 'Senior Citizen' in Old Regime and enters ₹50,000 in Section 80C (life insurance). The calculator applies his age-based exemption limit of ₹3L (instead of ₹2.5L) and calculates his tax accordingly, benefiting from his senior citizen status.
✓Neha is a Non-Resident Indian (NRI) working in the US but receives ₹15 lakhs annually from her Indian company's Delhi office. She selects 'NRI' status and enters ₹15 lakhs. The calculator shows her Indian tax is ₹2.35 lakhs (after ₹75k standard deduction, using progressive slabs: 0-2.5L at 0%, 2.5-5L at 5%, 5-10L at 20%, remaining at 30%), plus surcharge if applicable, helping her understand her Indian tax obligation.
✓Amit received a mid-year increment: earned ₹20 lakhs for 6 months at ₹40L annual package, then ₹50L annual package for the remaining 6 months. Total annual income: ₹45L. He enters ₹45L and gets his correct annual tax position (₹5.82L after standard deduction), accounting for his incremented salary.
✓Sneha invested ₹1 lakh in ELSS (Equity Linked Savings Scheme) under Section 80C and paid ₹50,000 for medical insurance under Section 80D. In Old Regime with ₹40L gross salary, she enters these deductions (₹1.5L total) and sees how they reduce her taxable income from ₹39.25L to ₹37.75L, saving her approximately ₹0.34L in tax.
✓Arjun took 3 months unpaid leave for further studies. His actual earned salary is ₹15L for 9 months of work (instead of full ₹20L). He enters ₹15L in the calculator to get his tax liability (₹0.92L after deductions), helping him file ITR correctly for the reduced earning year.
✓Divya received a ₹5L performance bonus in December (not included in regular salary). Her regular salary is ₹25L. She enters total ₹30L in the calculator to understand how the bonus impacts her total tax liability (₹2.96L after standard deduction, without surcharge), helping her plan finances for year-end.

Common Income Tax Mistakes to Avoid

⚠Forgetting to include all salary components: Including only basic salary and ignoring dearness allowance, special allowance, bonuses, and incentives leads to underestimating tax. Remember, anything your employer pays you as part of your compensation package is taxable income.
⚠Not applying the ₹75,000 standard deduction: This automatic deduction applies to all salaried employees in FY 2025–26. Calculating tax on full salary without this deduction overstates your tax liability. Every calculator should apply this first.
⚠Assuming TDS deducted equals final tax due: TDS is just an advance payment. Your actual tax is calculated based on annual income and deductions. Due to the ₹75,000 standard deduction (FY 2025–26), your real tax is often lower than TDS, making you eligible for a refund.
⚠Misclassifying residency status: Being out of India for a few months doesn't make you NRI. Residency is determined by specific criteria: 182+ days in India OR 60+ days in current year plus 365+ days in preceding 4 years. Misclassification can result in higher tax if you claim NRI when resident (or vice versa), and rebate under Section 87A is not available to NRIs.
⚠Choosing wrong tax regime: Many professionals automatically choose Old Regime or New Regime without comparing. Run both scenarios to see which results in lower tax based on your specific deduction capacity.
⚠Forgetting age-based benefits: Senior citizens (60-79) and super seniors (80+) get higher exemption limits in Old Regime. If you're eligible, failing to select your correct age group means missing tax benefits.
⚠Not tracking mid-year increments: If your salary increased mid-year, include the higher amount for all remaining months, not just the months worked at higher pay. This ensures accurate annual tax calculation.
⚠Missing Section 80C, 80D, 80G deductions: If using Old Regime, entering zero deductions when you have LIFE insurance, medical insurance, or charitable donations means overpaying tax. These deductions can significantly reduce your liability.
⚠Including TDS for two employers incorrectly: If you switched jobs, ensure you add both employers' TDS correctly. Each employer issues separate TDS, both of which are credited together toward your annual liability.
⚠Not filing ITR despite TDS deduction: If TDS was deducted even though your income is below the exemption limit, you must file ITR to claim refund. Many employees leave refund money unclaimed because they don't file.

Benefits of Using This Calculator

This free New Regime salary income tax calculator for FY 2025–26 eliminates manual calculations and ensures pinpoint accuracy. Here's what it delivers:

Instant Accurate Results: No manual slab lookups or calculator errors. Enter your gross salary and TDS, select your residency status, and get complete tax calculation in seconds—all processed in your browser.

FY 2025–26 Rules Built-In: The calculator is fully updated with current New Regime slab rates (0%, 5%, 10%, 15%, 20%, 25%, 30%), surcharge percentages (0%-37%), 4% cess rules, and ₹75,000 standard deduction. No need to search for updated rules annually.

Clarity on Rebate u/s 87A: Know exactly when rebate applies (residents with taxable income ≤₹12L) and when it doesn't. Understand that NRIs cannot claim rebate regardless of income. Full transparency on tax exemptions.

Surcharge & Cess Accurate: The calculator correctly applies surcharge tiers (₹50L–₹1Cr: 10%, ₹1Cr–₹2Cr: 15%, etc.) and 4% cess on (tax + surcharge). Many high-income earners underestimate tax; this calculator removes surprises.

Refund Clarity: Know immediately if you'll receive a refund or owe additional tax. Due to the ₹75,000 standard deduction, many employees overpay TDS and qualify for refunds. The calculator shows exactly how much to expect.

TDS Credit Transparency: See exactly how your TDS (from employer) and advance tax (if any) are credited against your final liability. Understand if you've overpaid or underpaid through the year.

Resident vs. NRI Distinction: Whether you're a resident or NRI earning Indian-source salary, the calculator applies correct New Regime slabs and clearly states: NRIs cannot claim Section 87A rebate.

Comprehensive Breakdown: See each component: gross income, standard deduction, taxable income, income tax, surcharge, cess, total tax liability, TDS credit, and final refund or additional tax due. Understand your complete tax picture.

Instant Scenario Testing: Use different scenarios—what if salary increases, bonus received, or TDS varies? See how each affects your final tax and refund instantly. Plan finances with confidence.

Completely Secure & Private: All calculations happen entirely in your browser. Your financial information never leaves your device, never stored on servers, never tracked. No accounts, no logins, no data collection. Calculate with complete privacy.

Privacy & Data Safety

✓No data stored: We do not store, save, or archive any of your financial information
✓Browser-only calculation: All calculations happen on your device, nothing sent to servers
✓No tracking: We don't track, log, or monitor your use of this calculator
✓No third-party sharing: Your data is never shared with any third party

Frequently Asked Questions

Do NRIs use different slab rates? Can NRIs opt for the New Regime?+

No, NRIs use the same New Regime slab rates as residents for Indian-source salary income. However, NRIs cannot claim rebate under Section 87A, which is exclusively available to Resident Individuals.

NRIs are taxed on Indian-source income only at progressive slab rates (0-2.5L 0%, 2.5-5L 5%, 5-10L 20%, 10L+ 30%), plus applicable surcharge and 4% cess.

To opt for the New Regime, NRIs can use Form 10-IEA (Intimation of Election for the New Regime) and submit it to the Income Tax Department. This allows them to benefit from lower tax rates, though the rebate under Section 87A remains unavailable to them. Without opting in writing, NRIs default to the Old Regime tax calculation.

Is the ₹1 crore income tax calculation correct?+

Yes, for a Resident Individual with ₹1 crore (₹10,000,000) gross annual income under the New Regime:

Gross Income: ₹10,00,00,000 Standard Deduction: ₹75,000 Taxable Income: ₹9,99,25,000

Income Tax Breakdown (New Regime Slabs): • ₹0–₹4L @ 0% = ₹0 • ₹4L–₹8L @ 5% = ₹20,000 • ₹8L–₹12L @ 10% = ₹40,000 • ₹12L–₹16L @ 15% = ₹60,000 • ₹16L–₹20L @ 20% = ₹80,000 • ₹20L–₹24L @ 25% = ₹100,000 • Above ₹24L @ 30% = ₹2,95,25,000 (₹9,99,25,000 – ₹24L × 30%) Base Tax = ₹2,95,57,500

Surcharge (₹1Cr–₹2Cr @ 15% on tax): ₹44,33,625 Cess (4% on tax + surcharge): ₹13,59,645

**Total Tax: ₹3,53,30,985** **Net In-Hand: ₹6,46,69,015**

This is the accurate tax calculation under FY 2025–26 New Regime.

What is TDS and how does it work?+

TDS (Tax Deducted at Source) is income tax that your employer automatically deducts from your salary every month and remits to the government. Instead of paying your entire annual tax at year-end, TDS allows you to pay gradually throughout the year.

Your employer calculates TDS using a formula that considers your monthly salary, expected annual salary, and projected tax liability. The TDS amount is mentioned separately on each salary slip. You can view cumulative TDS on your Form 16 (issued by your employer by June).

At financial year-end, when you file your Income Tax Return, your actual tax liability is calculated based on your full annual income, deductions, and applicable tax slabs. If TDS paid during the year exceeds your actual liability, you get a refund. If it's less, you pay the balance. TDS is just an advance payment, not your final tax.

How do I determine my residency status for tax purposes?+

Your residency status for a financial year is determined by your physical presence in India, not by your citizenship or current place of residence.

You're classified as Resident if any one of the following conditions is met:

• You stayed in India for 182 days or more during the financial year (April to March), OR • You stayed in India for 60 days or more in the current financial year and 365 days or more in the preceding 4 financial years.

If neither of the above conditions is satisfied, you're classified as Non-Resident (NRI) for that financial year.

Residency status is extremely important because it directly impacts how your income is taxed. Residents are taxed using progressive income tax slabs, while NRIs are taxed on Indian-source income only using the same progressive slabs as residents below 60 years (0-2.5L 0%, 2.5-5L 5%, 5-10L 20%, 10L+ 30%), and rebate under Section 87A is not available to NRIs.

Even a small difference in the number of days stayed in India can change your residency status and significantly affect your final tax liability. Always verify your day count carefully before calculating tax.

What is the standard deduction for salaried employees in FY 2025–26?+

The standard deduction is a benefit exclusively available to salaried employees in India. It's a fixed deduction from your gross salary that reduces your taxable income automatically. No conditions, no documentation, no proof required.

FY 2025–26 (AY 2026–27) Standard Deduction — UNIFIED FOR BOTH REGIMES: • New Regime: ₹75,000 • Old Regime: ₹75,000

Budget 2025 maintains different standard deductions across regimes: New Regime ₹75,000, Old Regime ₹50,000. This simplifies tax planning and provides different benefits to salaried employees based on regime choice.

Example: If your gross salary is ₹40 lakhs: • Under New Regime: Taxable income = ₹40L - ₹75K = ₹39.25L (no other deductions allowed) • Under Old Regime: Taxable income = ₹40L - ₹75K - Chapter VI-A deductions (if any)

Additional Benefit for Old Regime: Unlike New Regime, Old Regime allows Chapter VI-A deductions (Section 80C up to ₹1.5L, Section 80D for medical insurance, Section 80G for donations) in addition to the standard deduction.

This is perhaps the single most important benefit for salaried employees, yet many overlook it and calculate tax on their full salary. Always ensure the ₹75,000 standard deduction is applied first before calculating tax.

What's the difference between Old Regime and New Regime for salary income?+

Old Tax Regime allows deductions under Chapter VI-A (Sections 80C, 80D, 80G, etc.) but uses higher tax slabs. New Tax Regime has lower tax slabs but doesn't allow deductions. Both regimes include the ₹75,000 standard deduction.

Old Regime Tax Slabs (Residents, Below 60) — After ₹75,000 standard deduction: - Up to ₹2.5L: 0% - ₹2.5L–₹5L: 5% - ₹5L–₹10L: 20% - Above ₹10L: 30%

New Regime Tax Slabs (FY 2025–26 / AY 2026–27) [Section 115BAC(1A)] — After ₹75,000 standard deduction: - Up to ₹4L: 0% - ₹4L–₹8L: 5% - ₹8L–₹12L: 10% - ₹12L–₹16L: 15% - ₹16L–₹20L: 20% - ₹20L–₹24L: 25% - Above ₹24L: 30%

Key Differences: • Standard Deduction: New = ₹75,000 | Old = ₹50,000 (regime-specific) • Chapter VI-A Deductions: Old allows (80C, 80D, 80G); New doesn't • Rebate u/s 87A: New full rebate ≤₹12L income (tax=₹0); Old max ₹12,500 ≤₹5L income • Age-based benefits: Only in Old Regime (Senior citizens: ₹3L exemption; Super seniors: ₹5L exemption)

Choose Old Regime if you have significant deductions (insurance, investments, donations) or age-based benefits. Choose New Regime if minimal deductions but want lower tax rates and simpler calculation.

Always calculate both regimes and choose the one resulting in lower tax for your specific situation.

Can Non-Resident Indians (NRIs) use this calculator?+

Yes, absolutely. NRIs earning Indian-source salary can use this calculator. Simply select 'Non-Resident' as your status and choose your preferred tax regime (New or Old), then enter your annual salary earned in India.

**NRI Tax Regime Options:**

**Old Regime (Default):** NRIs are taxed at progressive slab rates (0-2.5L at 0%, 2.5-5L at 5%, 5-10L at 20%, 10L+ at 30%), plus applicable surcharge and cess. This is the default taxation method.

**New Regime (Section 115BAC - Optional):** NRIs can opt for the New Regime using Form 10-IEA and use lower slab rates (0-4L at 0%, 4-8L at 5%, 8-12L at 10%, 12-16L at 15%, 16-20L at 20%, 20-24L at 25%, 24L+ at 30%), which typically results in lower tax.

**Important:** This calculator covers only Indian-source salary income. If you earn salary outside India (from a foreign employer), that income is taxed in the country where it's earned, not under Indian tax rules. This calculator won't apply to foreign-source income.

**NRI Specifics:** - Tax Regimes: Old Regime (default) or New Regime (optional) - No rebate u/s 87A available regardless of regime or income level - Standard Deduction: Applicable (₹75,000 for New Regime | ₹50,000 for Old Regime) - Surcharge: Applied per income slabs (capped at 25% for New Regime) - Cess: 4% on (tax + surcharge) - No Chapter VI-A deductions allowed

For NRIs with complex income sources, consult a tax professional to ensure proper compliance.

How do senior citizens benefit from tax calculations?+

Residents aged 60-79 (senior citizens) and 80+ (super seniors) get special tax benefits in the Old Regime:

Senior Citizens (60-79): - Exemption limit increases from ₹2.5L to ₹3L (Old Regime) - Tax slab thresholds increase accordingly - Rebate u/s 87A available up to higher income limit

Super Seniors (80+): - Exemption limit increases from ₹2.5L to ₹5L (Old Regime) - Even more favorable tax slab structure - Full rebate u/s 87A if income within threshold

These benefits are available only in the Old Regime. If you're a senior citizen, always calculate both regimes and compare. Often, Old Regime results in lower tax due to these age-based benefits.

New Regime (2025-26) also offers some benefits but doesn't differentiate by age as significantly.

If you're 60 or above, ensure you select your correct age group in the calculator to receive these senior citizen benefits.

What happens if I get a tax refund? When will I receive it?+

If your TDS (and advance tax if any) exceeds your final calculated tax liability, you're entitled to a refund.

Example: If your annual salary is ₹25L, your TDS deducted is ₹3L, but your actual tax liability after the ₹75,000 standard deduction is ₹2.5L, you're owed a ₹50,000 refund.

To claim your refund: 1. File your Income Tax Return (ITR-1 for salaried income) on the official Income Tax website (incometax.gov.in) 2. Provide your Form 16 (issued by your employer) as supporting document 3. File within the due date (July 31st of the following financial year for most individuals)

Refund Timeline: - Refund is typically processed within 3-6 weeks after your return is filed and processed - You can track refund status on the IT website using your PAN

Important: Refund doesn't happen automatically. You must file your ITR to claim it. Many employees miss refunds simply because they don't file their return. Don't leave your refund unclaimed.

What is surcharge and how does it affect my tax?+

Surcharge is additional tax levied on individuals with very high income. It's calculated as a percentage of your income tax (not as a separate tax on income).

Surcharge Slabs for Residents (FY 2025-26): - Income up to ₹50 lakh: 0% surcharge - ₹50 lakh to ₹1 crore: 10% surcharge on tax - ₹1 crore to ₹2 crore: 15% surcharge on tax - ₹2 crore to ₹5 crore: 25% surcharge on tax - Above ₹5 crore: 37% surcharge on tax

Example: If your income is ₹75 lakh and your calculated income tax is ₹10 lakh, surcharge would be ₹10 lakh × 10% = ₹1 lakh. This surcharge is added to your income tax liability.

NRIs are subject to the same surcharge slabs as individuals. Under the New Tax Regime, surcharge is capped at 25%.

Surcharge under New Tax Regime is capped at 25% — meaning even if the slab rate exceeds 25%, the effective surcharge won't go beyond 25% of income tax.

After surcharge is calculated, an additional 4% Health & Education Cess is applied on (tax + surcharge).

If you're a high-income earner, surcharge and cess can significantly increase your total tax liability. Account for these when planning your finances.

Is my salary information completely safe with this calculator?+

Completely safe and secure. This calculator does NOT store, save, log, or transmit your financial information to any server. All calculations happen entirely within your web browser on your device.

Your salary amount, TDS, personal details, and all financial information: - Stay on your device only - Are never sent to our servers or any external server - Are permanently deleted when you close the browser tab - Cannot be accessed by anyone else

Privacy Features: - No account creation required - No login or registration - No cookies or tracking - No cookies or analytics related to your calculations - No data collection whatsoever - Completely anonymous usage

This browser-based calculation method ensures your sensitive financial information remains completely private. Use this calculator with complete confidence knowing your financial privacy is protected.

What deductions are available in Old Regime?+

Old Tax Regime allows deductions under Chapter VI-A of the Income Tax Act:

Section 80C (₹1.5 lakh cap): - Life insurance premiums - Provident Fund (PF) contributions - Employees' Pension Scheme (EPS) contributions - Equity Linked Savings Scheme (ELSS) mutual funds - Fixed Deposits (some banks) - Sukanya Samriddhi Scheme - Public Provident Fund (PPF) - Home loan principal repayment - Tuition fees for children

Section 80D: - Medical insurance premiums for you and family - Medical expenses of senior citizens (if no insurance) - Preventive health check-up (capped at ₹5,000)

Section 80G: - Donations to approved charitable organizations - Not all donations qualify; refer to Section 80G(5)

Section 80E: - Education loan interest (on loans for higher education)

Section 80TTA: - Interest on savings accounts (capped at ₹10,000)

These deductions reduce your taxable income, resulting in lower tax liability in the Old Regime. New Regime offers no such deductions.

If you have significant deduction capacity, Old Regime may be more beneficial than New Regime despite higher slab rates.

Can I switch tax regimes every year?+

Yes, you can switch between Old Regime and New Regime every financial year. However, once you choose for a particular financial year while filing ITR, you must stick with that regime for the entire year.

Strategy Tips: - Analyze both regimes each year based on your current deduction capacity - If you have significant deductions (Section 80C investments, medical insurance, donations), Old Regime may benefit more - If you have minimal deductions, New Regime's lower slabs might be better - Use calculators like this one to run both scenarios and compare - The regime that results in lower final tax is the one you should choose and file under

Default: New Regime is the default for most taxpayers from FY 2023-24 onwards, but you can opt back to Old Regime if it's beneficial.

Plan your deductions based on which regime you'll choose, as some deductions (Section 80C) only apply in Old Regime.

Accuracy, Compliance & Legal Information

Calculation Accuracy

✓ Based on Income Tax Act, 1961: Calculations strictly follow official Indian income tax laws and rules for FY 2025-26
✓ Annually updated: Tax slabs, surcharge rates, and deduction limits are verified and updated for current financial year
✓ Complies with CBDT guidelines: Follows Central Board of Direct Taxes (CBDT) rules and official notifications

Important Limitations

⚠ Estimation tool only: This calculator provides estimates for planning purposes. Not final tax assessment or official compliance document.
⚠ Standard scenarios: Covers typical salaried employees. Special cases (HRA exemption, business income, capital gains) may require professional advice.
⚠ No personal tax advice: This is NOT professional tax or financial advice. Consult a qualified Chartered Accountant (CA) for your specific situation.

Before Filing ITR

→ Always verify calculated results with your Form 16 (issued by employer)
→ Cross-check TDS amounts and tax regime selection
→ Consult a qualified tax professional before filing your Income Tax Return (ITR-1/ITR-2)