Income Tax Calculator

Income Tax Calculator India

Manual calculation of income tax liability can be a time-consuming and complex task. Using an online income tax calculator allows you to calculate the tax easily. An income tax calculator is a free-to-use online tool that estimates your tax liability based on income, applicable tax slabs, and deductions.

What is an Income Tax Calculator?

It is an online, free tool that allows users to evaluate taxes based on income, tax slab, and tax liability. If you fall under the taxable income bracket, you are liable to pay a specific portion of your annual income as tax. In addition, you have the liberty to choose between the old and new tax regimes, each having different tax rates and deductions.

The Central Board of Direct Taxes (CBDT) manages the income tax return portal where the income tax can be paid as tax deducted at source (TDS) during the monthly salary disbursement. Individuals can pay taxes online, ensuring the stipulated dues based on income generated from other sources.

Our income tax calculator is aligned with the updates announced in the Union Budget for FY 2025-25 and AY 2026-27.

Budget 2025 Updates on Income Tax

Here are the key highlights of the Union Budget 2025:

• Under the new tax regime, the income tax rebate was hiked to ₹60,000 from the previous rebate limit of ₹25,000. There is no tax liability on income up to ₹12 lakh.
• For FY 2025-26, the TDS limit on rent has been increased to ₹50,000 per month.
• For senior citizens, the limit on tax deduction on interest has been increased from ₹50,000 to ₹1,00,000.
• Under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme, the threshold for Tax Collected at Source (TCS) on remittances has been increased to ₹10 Lakhs from the earlier limit of ₹7 Lakhs.
• TCS has been removed for education loans acquired from specified financial institutions.

Revised Income Tax Slabs Under New Regime for FY 2025-2026 (AY 2026-2027)

How to Use BlinkX’s Online Income Tax Calculator?

Follow the below-given steps to use the BlinkX’s Income Tax Calculator:

• Step 1: Select the assessment year from the drop-down.
• Step 2: Select your age.
• Step 3: Click on the ‘income field’.
• Step 4: Provide the following details: Gross salary (monthly or yearly salary paid without any deductions), Annual income from other sources, such as rental income and annual interest paid on home loans for the self-occupied and let-out property, and annual income from interest.
• Step 5: Enter the details of various deductions - Basic deductions u/s under Section 87A, 80C, 80CCD (1B), 80D, 80G, 80E, 80TTA, 80TTB, 80GG, interest on Educational Loan u/s 80E, Interest on deposits in savings account u/s 80TTA/TTB.
• Step 6: Enter the details of the HRA exemption, such as the basic salary, DA, HRA, and total rent paid per annum.
• Step 7: Select whether you live in a metro city
• Step 8: Click on the calculate button to obtain your tax liability.

Irrespective of your tax regime, you can calculate your income tax using our income tax calculator within just a few clicks.

How to Calculate Income Tax on Salary?

You can calculate income tax on salary by following the steps below:

• Step 1: Calculate your gross salary by including your basic salary, allowances, bonus, and other taxable components.
• Step 2: Exemption components such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), and Standard Deduction. (As per the old tax regime)
• Step 3: Calculate your claim deduction (80C (for Provident Fund, PPF, or life insurance) – as per the old tax regime.
• Step 4: You get your taxable income by subtracting your deductions and exemptions from your gross salary.

Example of Tax Computation under the New Tax Regime

Let us consider an example of an individual with an annual income of ₹15,00,000. Here’s how the income tax on the salary income is calculated:

 Applicable Tax Rate as per the New Regime

Here’s how the taxable income will be taxed under the new tax regime:

Benefits of the Income Tax Calculator

The income tax calculator offers several benefits, such as:

• With BlinkX’s Income tax calculator, you get accurate results, reducing all the manual errors while calculating income tax.
• You can use the income tax calculator from anywhere and at any time, making it convenient.
• It is easy to use, making it user-friendly to calculate your tax obligations.
• With the income tax calculator, you can check your tax liability in advance and manage your funds efficiently.