Income Tax Calculation

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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.

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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:

  • 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.

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:

  • Standard deduction of ₹50,000 retained under both regimes
  • Increased 80C limit for certain categories (from ₹1.5 lakh to ₹2 lakh in some cases)
  • Revised tax slabs under the new regime to offer marginal relief
  • 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
  • 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.

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%

Standard Deduction: ₹50,000 applicable in both regimes

Rebate: 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:

Benefits of Using BUSY’s Income Tax Calculator

  • 100% Accuracy – Automated computation with the latest tax updates
  • Compare Old vs. New Regime – Instantly see which regime benefits you
  • Real-Time Output – Get results in seconds
  • Deduction-Friendly – Apply 80C, 80D, HRA, LTA & more
  • Mobile Friendly – Use it on your phone anytime
  • Free to Use – No login or payment required

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Frequently Asked Questions

  • Who can use the Income Tax Calculator?
    Anyone earning an income in India, be it a salaried employee, business owner, freelancer, or retiree, can use this calculator to estimate their tax liability.
  • What inputs are required to calculate income tax?
    You'll need to provide details like gross income, deductions (under 80C, 80D, etc.), exemptions (HRA, LTA), and choose the applicable tax regime.
  • Does the calculator consider standard deductions and exemptions?
    Yes. BUSY's calculator automatically applies the standard ₹50,000 deduction and allows for other common deductions and exemptions applicable in your tax scenario.
View all FAQs