BUSY Income Tax Calculator for Smarter Tax Planning

Income Tax Calculation

1
Basic Details
2
Income Details
3
Deductions

Age Group

FY

2025-26

Age

0–60

Income

₹0

Your Tax Summary

Old Regime

0

New Regime

0

You save
₹0

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.

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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:

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Salaried employees

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Freelancers & Consultants

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Business owners

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Retired individuals with pension income

To use it, you typically need to input:

  • arrow_rightGross annual income
  • arrow_rightIncome from other sources
  • arrow_rightDeductions under sections like 80C, 80D, HRA, LTA, etc.
  • arrow_rightAge category (for senior citizen tax benefits)
  • arrow_rightChosen tax regime

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

Budget 2025 Income Tax Updates

The Union Budget 2025 introduced a few updates in the personal income tax framework that impact both salaried and self-employed taxpayers. Here are some key highlights:

savings

Standard deduction of ₹50,000 retained under both regimes

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Increased 80C limit for certain categories (from ₹1.5 lakh to ₹2 lakh in some cases)

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Revised tax slabs under the new regime to offer marginal relief

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More inclusive benefits for senior citizens, including higher deduction caps under section 80D

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
0 – 2.5L = NIL
₹0
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
₹41,250 + cess

New Regime Calculation (No deductions)

0 – 3L = NIL
₹0
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.

Income Tax Slabs for FY 2025-26 (AY 2026-27)

Old Regime Slabs

Up to ₹2.5 lakh
Nil
₹2.5 lakh – ₹5 lakh
5%
₹5 lakh – ₹10 lakh
20%
Above ₹10 lakh
30%

New Regime Slabs

Up to ₹3 lakh
Nil
₹3 lakh – ₹6 lakh
5%
₹6 lakh – ₹9 lakh
10%
₹9 lakh – ₹12 lakh
15%
₹12 lakh – ₹15 lakh
20%
Above ₹15 lakh
30%
  • infoStandard Deduction: ₹50,000 applicable in both regimes
  • check_circleRebate: Individuals earning up to ₹7 lakh under the new regime pay zero tax after rebate under Section 87A

Explore Relevant Guides

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

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Taxation in Accounting : Basics, Types & Compliance Essentials

Benefits of Using BUSY’s Income Tax Calculator

verified

100% Accuracy

Automated computation with the latest tax updates

compare_arrows

Compare Old vs. New Regime

Instantly see which regime benefits you

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Real-Time Output

Get results in seconds

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Deduction-Friendly

Apply 80C, 80D, HRA, LTA & more

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Mobile Friendly

Use it on your phone anytime

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Free to Use

No login or payment required

Frequently Asked Questions

Clear answers to common queries about the Income Tax Calculator.

What is the BUSY ITC Calculator?

It is a calculator that tells you how to adjust available Input Tax Credit against your GST liability in the correct legal order so that you pay only what is actually due.

How does it work?

You enter total GST payable for IGST, CGST, and SGST and then enter the ITC you have for each. The tool applies IGST credit first and then allocates remaining credit to CGST or SGST in the correct order.

Why is the order of ITC set by law?

GST law says IGST credit must be used first and can even be used to pay CGST and SGST. CGST credit can pay only CGST and SGST credit can pay only SGST. The calculator follows this logic automatically.

Who should use this calculator?

Accounts teams and GST return filers who prepare GSTR 3B can use this tool to know final cash payment after using all available credits

Can this help me avoid paying extra GST in cash?

Yes. By using the correct credit set off order you avoid under-using ITC and you reduce unnecessary cash payment.

Does the calculator tell me unused ITC?

Yes. After adjustment the tool shows how much ITC is still left so you can carry it forward to the next period.

Is the BUSY ITC Calculator useful before filing GSTR 3B?

Yes. You can run it before filing to confirm the final liability that you actually need to pay in cash. That helps you plan working capital for GST payment.

Do I need Excel knowledge to use this?

No. The interface is simple. You just enter the values and click calculate. It is built to remove manual spreadsheet dependency for MSMEs.

Is login required?

No. The ITC Calculator can be used free on web without creating an account.

How does this connect with BUSY Accounting Software?

Inside BUSY you already get purchase registers, GSTR 2B reconciliation, and GST payment utilities. The ITC Calculator is the quick pre-filing check so you know the correct set off even before you open the GST payment screen in BUSY.

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