Income Tax Calculation

BUSY Income Tax Calculator

Filing your income tax returns doesn’t have to be complex. BUSY’s Income Tax Calculator is a fast, reliable, and easy-to-use tool that helps you estimate your income tax liability for FY 2025-26 (AY 2026-27) within seconds. Whether you’re a salaried employee, self-employed professional, or business owner, this calculator allows you to compare the Old vs. New Tax Regimes, apply deductions under sections like 80C and 80D, and understand your net taxable income instantly.

Simply enter your income details, deductions, and exemptions, and get real-time, accurate results that help you plan taxes better and stay compliant.

What is an Income Tax Calculator?

An Income Tax Calculator is a digital tool that helps you calculate your total tax payable based on your income, age, applicable tax slabs, and deductions claimed. It eliminates the guesswork and manual computation, ensuring accuracy and saving you time.

BUSY’s Income Tax Calculator supports both tax regimes (Old and New), allowing users to compare which one gives the better tax outcome. It caters to a wide audience:

• Salaried employees
• Freelancers & consultants
• Business owners
• Retired individuals with pension income

To use it, you typically need to input:

• Gross annual income
• Income from other sources
• Deductions under sections like 80C, 80D, HRA, LTA, etc.
• Age category (for senior citizen tax benefits)
• Chosen tax regime

Once the values are entered, the tool gives an instant tax liability amount along with a breakdown of how it’s computed.

Calculate Income Tax on Salary with Example

Let’s take a relatable example to see how income tax is calculated for a salaried individual under both regimes.

Example:

• Gross Salary: ₹10,00,000
• Standard Deduction: ₹50,000
• 80C Deduction: ₹1,50,000
• 80D Deduction: ₹25,000

Old Regime Calculation:

• Net Taxable Income = ₹10,00,000 – ₹50,000 – ₹1,50,000 – ₹25,000 = ₹7,75,000
• Tax Slab:
  • 0 – 2.5L = NIL
  • 2.5 – 5L = 5% of ₹2.5L = ₹12,500
  • 5 – 7.5L = 10% of ₹2.5L = ₹25,000
  • 7.5 – 10L = 15% of ₹25,000 = ₹3,750
• Total Tax = ₹12,500 + ₹25,000 + ₹3,750 = ₹41,250 + cess

New Regime Calculation (No deductions):

• Tax on ₹10,00,000 as per new slabs:
  • 0 – 3L = NIL
  • 3 – 6L = 5% of ₹3L = ₹15,000
  • 6 – 9L = 10% of ₹3L = ₹30,000
  • 9 – 10L = 15% of ₹1L = ₹15,000
• Total Tax = ₹60,000 + cess

Result:
Old regime saves more in this scenario due to deductions. BUSY’s calculator lets you view both options instantly so you can make an informed decision.

Explore Relevant Guides

To understand your tax filing, accounting, and financial compliance better, explore these expert resources from BUSY:

• Taxation in Accounting : Basics, Types & Compliance Essentials