Income Tax Calculator 

What is an Income Tax Calculator? 

An income tax calculator is an online tool that is used to calculate the tax liability of an individual based on the income details provided and the tax rules that are applicable. It usually helps users understand how much tax may be payable under different tax regimes without manual calculations. By offering a structured estimate, the tool supports better financial awareness and compliance. It is relevant for salaried individuals, self-employed professionals, pensioners, and those with multiple income sources. Overall, it simplifies tax understanding and assists users in planning their finances more clearly within the prevailing tax framework. 

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

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 the 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: Individuals need to select whether they live in a metro city 

Step 8: Click on the calculate button to obtain the tax liability. 

Irrespective of one’s tax regime, individuals can calculate their income tax using our income tax calculator within just a few clicks. 

Benefits of Income Tax Calculator 

Using an income tax calculator provides a number of benefits to people who are dealing with their tax obligations. Some of the potential benefits include: 

• Ease of Use: The calculator makes complex tax calculations easier by enabling a taxpayer to estimate his or her tax liability without requiring in-depth technical knowledge of tax laws. 
• Enhanced Accuracy: Automated calculations reduce the chances of human error, ensuring that income details, deductions, and tax slabs are applied consistently and correctly. 
• Support for Tax Planning: By presenting an estimated liability, the calculator helps individuals identify areas where eligible deductions or exemptions could be considered during financial planning. 
• Customised Estimates: Calculations adjust based on entered income details, deductions, and exemptions, providing results that reflect an individual’s specific financial situation. 
• Comparison of Tax Regime:  It allows users to compare outcomes under the old and new tax regimes, helping them understand how different structures may affect their tax payable. 

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 Calculate Income Tax on Salary? 

Here are the steps that can be used to calculate income tax on salary. 

Calculate Salary 

Begin by identifying the total salary earned during the financial year, including basic pay, allowances, bonuses, and any other taxable salary components. 

Apply Exemptions 

Certain salary components may qualify for exemptions, such as house rent allowance or leave travel allowance, depending on eligibility and the chosen tax regime. 

Claim Deductions 

Consider available deductions under various provisions of the Income Tax Act, such as Section 80C, Section 80D and Section 24b. These Income Tax Act provisions are usually related to savings, insurance, or housing loans, and can be accounted for where applicable. 

Compute Taxable Income 

The taxable income is calculated by subtracting eligible exemptions and deductions from the gross salary, forming the base for tax computation. 

Apply Tax Slab Rates 

The final step involves applying the appropriate tax slab rates as per the selected tax regime to estimate the tax payable. 

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 calculator new regime 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: