--- title: "Free Income Tax Calculator India - Old vs New Regime 2025-26" description: "Free income tax calculator for India. Compare old vs new regime, check tax slabs, deductions and tax liability instantly. No login needed." canonical: "https://busy.in/calculators/income-tax-calculator/" --- # Free Income Tax Calculator India – Compare Old vs New Regime 2025-26 ## Income Tax Calculation 1 Basic Details 2 Income Details 3 Deductions Financial Year Please enter year Age Group 0-60 60-80 80 & Above Continue Income Details Income from Salary Salary before reducing HRA, LTA, standard deductions & professional tax. If applicable, reduce leave encashment ₹ Income from Interest Includes interest from savings bank, deposits and other interest ₹ Rental income received Annual rent received on let-out property (Standard deduction @30% will be auto calculated) ₹ Income from digital assets Net Income from Digital Assets, taxed at 30% ₹ Other income Includes taxable freelancing income or any other taxable income ₹ Exempt allowance HRA, LTA, Professional Tax and any Other Exemptions ₹ Interest on Home Loan - Let Out Interest paid on housing loan taken for rented/let-out property ₹ Interest on Home Loan-Let Out Interest paid on housing loan taken for rented/let-out property ₹ Back Continue Deductions Basic deductions - 80C Amount invested/paid in tax saving instruments such as PPF, ELSS mutual funds, LIC premium, etc. (max: 1.5L) ₹ Medical insurance - 80D Medical premium & preventive health checkup fees paid for self & family including parents ₹ Interest on housing loan - 80EEA Amount of interest paid on housing loan sanctioned during FY 2022-2023 (max: 1.5L) ₹ Employer's contribution to NPS - 80CCD(2) Amount of contributions made by employer to the National Pension Scheme (NPS) under Section 80CCD(2) ₹ Interest from deposits - 80TTA Amount of interest income on deposits in savings account (includes fixed/recurring deposit interest in case of senior citizen) ₹ Donations to charity - 80G Amount paid as donation to charitable insitutions or certain recognized funds ₹ Employee's contribution to NPS - 80CCD Includes voluntary contribution to National Pension Scheme (NPS) under section 80CCD(1) and 80CCD(1B) ₹ Any other deduction Enter the deduction amount to be claimed under any other sections not listed above ₹ Back FY 2025-26 Age 0–60 Income ₹0 Your Tax Summary Old Regime 0 New Regime 0 You save ₹0 Use BUSY’s Income Tax Calculator to get a quick estimate of your tax payable under the old and new tax regimes. Enter your income, deductions, exemptions and age category to understand your estimated tax liability in a simple format. The calculator is useful for salaried employees, professionals, business owners, pensioners and NRIs with Indian-sourced income. It helps you compare both regimes and see which option may work better for your income and deduction profile. ## India’s No.1 GST Billing & Accounting Software - Auto GST & ITC Calculations - 1-Click Filing & Reconciliation - Complete Inventory Management - End-to-End Accounting Solution - Auto E-Way Bill & E-Invoice ## What is a Free Income Tax Calculator Online? A free income tax calculator is a digital tool that estimates how much income tax you may need to pay based on your income, deductions, exemptions, age category, residential status and selected tax regime. Instead of calculating tax manually, you can enter your details and get a structured income tax estimate online instantly. BUSY’s Income Tax Calculator supports both old and new tax regimes, so you can compare your estimated tax under both options before filing your return. This tool is useful for: Salaried employees Freelancers & Consultants Business owners Retired individuals with pension income [**NRIs with Indian-sourced income**](https://busy.in/tds/section-195-of-income-tax/) All you need to enter: - Gross annual income - Income from salary, business, profession, rent or other sources - Exempt allowances, if applicable - Eligible deductions - Age category - Residential status - Tax regime preference Note: Rebate, deductions and exemptions may depend on your residential status, income type and selected tax regime. Check the latest rules before filing your return. ## Latest Income Tax Updates for Old and New Regime The latest Union Budget introduced key income tax updates that impact tax calculations and regime comparisons for taxpayers. Here are the main highlights: ### Standard Deduction ₹50,000 under old regime and ₹75,000 under new regime. ### New Regime Slabs Nil tax up to ₹4 lakh and 30% above ₹24 lakh. ### Section 87A Rebate Up to ₹60,000 rebate for eligible residents with taxable income up to ₹12 lakh. ### Default Regime New regime remains the default tax regime. ## How to Use This Free Income Tax Calculator Online 1 Enter income from salary, business, rent, pension and other sources. 2 Add eligible deductions and exemptions based on tax regime. 3 Select age category and residential status. 4 Compare estimated tax under old and new regimes. 5 View taxable income, rebate, cess and final tax payable. ## Income Tax Calculation Formula Taxable Income = Gross Income – Eligible Exemptions – Eligible Deductions Tax Payable = Slab-Based Tax – Rebate + Cess + Surcharge, if applicable The final tax amount may vary based on your income type, selected regime, residential status, deductions, exemptions, [**surcharge and TDS already deducted**](https://busy.in/tds/section-206aa-surcharge-cess-pan-requirements/). ## Calculate Income Tax on Salary with Example Let’s take a simple example to see how income tax is calculated for a salaried individual under both regimes. Metric Value Gross Salary ₹10,00,000 Old Regime Standard Deduction ₹50,000 New Regime Standard Deduction ₹75,000 80C Deduction ₹1,50,000 80D Deduction ₹25,000 ### Old Regime Calculation Gross Salary ₹10,00,000 Less: Standard Deduction ₹50,000 Less: 80C Deduction ₹1,50,000 Less: 80D Deduction ₹25,000 Net Taxable Income ₹7,75,000 ₹0 – ₹2.5 lakh Nil ₹2.5 lakh – ₹5 lakh ₹12,500 ₹5 lakh – ₹7.75 lakh ₹55,000 Total Tax Before Cess ₹67,500 4% Health and Education Cess ₹2,700 Total Tax Payable ₹70,200 ### New Regime Calculation Gross Salary ₹10,00,000 Less: Standard Deduction ₹75,000 Net Taxable Income ₹9,25,000 ₹0 – ₹4 lakh Nil ₹4 lakh – ₹8 lakh ₹20,000 ₹8 lakh – ₹9.25 lakh ₹12,500 Total Tax Before Rebate ₹32,500 Less: Section 87A Rebate ₹32,500 Total Tax Payable ₹0 ### What the Numbers Mean - **Standard Deduction:** ₹50,000 is applied under the old regime and ₹75,000 under the new regime in this example - **Rebate:** Since taxable income under the new regime is ₹9,25,000, the eligible resident individual gets Section 87A rebate and pays zero tax - **Tax Difference:** Old regime tax payable is ₹70,200, while new regime tax payable is ₹0 in this example ## Income Tax Slabs: Old and New Regime ### Old Regime Slabs Annual Income Tax Rate Up to ₹2.5 lakh Nil ₹2.5 lakh – ₹5 lakh 5% ₹5 lakh – ₹10 lakh 20% Above ₹10 lakh 30% Senior citizen note: Under the old regime, the basic exemption limit is ₹3 lakh for senior citizens aged 60 to below 80, and ₹5 lakh for super senior citizens aged 80 and above. Old regime rebate note: Under the old regime, Section 87A rebate applies to eligible resident individuals with taxable income up to ₹5 lakh. The maximum rebate is ₹12,500. ### New Regime Slabs Annual Income Tax Rate Up to ₹4 lakh Nil ₹4 lakh – ₹8 lakh 5% ₹8 lakh – ₹12 lakh 10% ₹12 lakh – ₹16 lakh 15% ₹16 lakh – ₹20 lakh 20% ₹20 lakh – ₹24 lakh 25% Above ₹24 lakh 30% New regime rebate note: Under the new regime, Section 87A rebate is available up to ₹60,000 for eligible resident individuals with taxable income up to ₹12 lakh. The old regime may work better if you claim deductions and exemptions such as [**80C, 80D, HRA**](https://busy.in/tds/part-b-of-salary-allowances-exemptions-sec-10-deductions-80c-80d-80e/), or home loan interest. The new regime may work better if you have fewer deductions and want a simpler tax calculation with revised slab rates. Since the new regime is the default option, compare both regimes before filing and choose the one that gives lower tax payable. ## Common Deductions Used in Income Tax Calculation Deductions reduce your taxable income and can affect your final tax payable. Limited deductions such as standard deduction and employer’s NPS contribution may still be available under the new regime, subject to eligibility. Some common deductions include: 80C ### Section 80C Includes eligible investments such as PPF, ELSS, EPF, life insurance and home loan principal repayment. 80D ### Section 80D Applies to eligible health insurance premiums paid for self, family and parents. 24(b) ### Section 24(b) Applies to home loan interest, subject to applicable limits and property type. 80CCD ### Section 80CCD Applies to eligible National Pension System contributions. HRA ### HRA Exemption Available to eligible salaried taxpayers under the old regime if they [**receive HRA and pay rent**](https://busy.in/tds/calculate-hra-step-by-step/). Note: Most deductions and exemptions are available mainly under the old regime. The new regime allows limited deductions, so always check eligibility before filing. ## 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](https://busy.in/accounting/taxation-in-accounting-basics-types-of-taxes-and-compliance-essentials/)[GST Calculator – Calculate GST amount and breakup instantly](https://busy.in/calculators/gst-calculator/)[ITC Calculator – Work out eligible Input Tax Credit](https://busy.in/calculators/itc-calculator/)[Business EMI Calculator – Plan loan repayments with ease](https://busy.in/calculators/business-emi-calculator/)[Profit Margin Calculator – Measure your business margins](https://busy.in/calculators/profit-margin-calculator/)[ROI Calculator – Estimate returns on your investments](https://busy.in/calculators/roi-calculator/) ## Benefits of Using BUSY’s Free Income Tax Calculator Online Compare Tax Regimes Compare old and new regime tax instantly. Real-Time Estimates Get tax estimates without manual calculations. Add Deductions Easily Understand deduction impact on tax payable. Suitable for All Taxpayers Useful for salary, business and professional income. Includes Rebate and Cess Accounts for rebate and cess automatically. Free to Use No login or payment required. ## Frequently asked questions ### What is the BUSY ITC Calculator? BUSY's ITC Calculator is a free online tool that shows how available Input Tax Credit can be adjusted against GST liabilities under IGST, CGST and SGST. It helps accounts teams and GST filers estimate the exact cash amount payable before filing GSTR-3B. ### How does the ITC Calculator work? You enter GST payable and available ITC for each tax head. The calculator applies IGST credit first and then adjusts CGST and SGST credits as per the permitted set-off logic. The output shows net cash payable and any unused ITC balance. ### Why is the order of ITC utilisation important? The order matters because GST credit cannot be used freely across all tax heads. IGST credit must be exhausted first. CGST credit cannot be used for SGST liability, and SGST credit cannot be used for CGST liability. Following the correct order helps avoid excess cash outflow, short payment, and errors while finalising GSTR-3B. ### Who should use this calculator? GST-registered businesses, accounts teams, tax consultants and Chartered Accountants can use this calculator before preparing or reviewing GSTR-3B. It is useful when credit is available under multiple tax heads and the final cash payment needs to be checked. ### Can this calculator help reduce GST cash payment? Yes. It helps you use eligible ITC before depositing GST in cash. This can reduce unnecessary cash outflow, especially when there is a high IGST credit balance that can be adjusted against more than one liability head. ### Does the calculator show unused ITC? Yes. The Tax Credit Summary shows credit used and remaining ITC balance. This is useful when credit under one head exceeds the current period liability and the unused eligible balance needs to be carried forward. ### Is this calculator useful before filing GSTR-3B? Yes. You can use it before finalising GSTR-3B to check your net cash liability after ITC adjustment. This helps avoid both excess cash deposit and short payment. ### Do I need to account for RCM liability separately? Yes. GST payable under Reverse Charge Mechanism must be paid in cash and cannot be adjusted using ITC at the time of payment. Once paid, eligible RCM tax may become ITC subject to GST conditions. ### Are blocked credits under Section 17(5) included? No. The calculator does not identify blocked credits under Section 17(5). Remove ineligible ITC before entering the available credit amount, such as blocked motor vehicle credit, food and beverage credit, club membership credit, and restricted works contract credit. ### Do I need a login or account to use this calculator? No. BUSY's ITC Calculator is free to use on the web without registration or login. ### How does this connect with BUSY Accounting Software? BUSY helps with purchase records, GST reports, GSTR reconciliation and GST payment workflows. The ITC Calculator acts as a quick pre-filing check before you finalise GST payment in your accounting system.