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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.
Explore All BUSY Calculators for Easy GST Compliance
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
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:
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.
