How Income Tax Works
Compare old and new FY 2025-26 regimes inline. The calculator uses the visible inputs, applies the formula below, and rounds rupee outputs to whole numbers so the result is easy to read on mobile.
Formula
Income Tax result = validated inputs → formula calculation → rounded Indian result
Inputs used:
- Annual income
- Old regime deductions
- Tax regime
- Age groupExample Calculation
India-Specific Assumptions
- Income tax slabs use FY 2025-26 defaults in the app constants.
- Cess is estimated at 4% where income tax is calculated.
- All rupee results are rounded to whole rupees for readability.
- Inputs are treated as estimates; actual bank, employer, university, insurer, or tax-office calculations may differ.
- The calculator uses Indian formats, slab concepts, and common FY 2025-26 assumptions where relevant.
Common questions
It is written for FY 2025-26 assumptions used inside CalcPad. Always verify final filing numbers against the Income Tax Department utility or your tax adviser.
Yes. You can switch regimes and enter deductions to see whether the old regime becomes better for your income profile.
Most old-regime deductions are not available in the new regime. The deductions field is mainly useful when comparing the old regime.
The calculator uses the app's salary-tax constants, including standard-deduction treatment where the underlying tax logic applies it.
Use it for planning and comparison only. Final ITR filing should use official utilities, Form 16, AIS/TIS data, and verified deduction proofs.
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Disclaimer: This calculator is for general informational and educational purposes only. It is not financial, tax, legal, academic, insurance, or professional advice. Verify important decisions with the relevant official source, employer, bank, university, insurer, or adviser.
Last updated: April 2026