The concept
What this models
This calculator estimates tax only under India's new tax regime slab structure (0%, 5%, 10%, 15%, 20%, 30% across the current slab bands), not the old regime with its deductions and exemptions.
It applies the Section 87A rebate, which reduces tax to zero when taxable income is at or below ₹7,00,000 under the new regime, then adds a 4% health and education cess on the remaining tax.
The method
How the calculation works
Annual income minus the entered standard deduction gives taxable income. Each slab's applicable rate is applied only to the portion of income within that slab, the totals are summed, the 87A rebate is applied if eligible, and a 4% cess is added to whatever tax remains. Slab thresholds and the rebate threshold are set by the government and can change each budget year — verify current rules before relying on this for a filing decision.
Slabs and rates follow the new tax regime; a full rebate applies when taxable income is at or below ₹7,00,000.
Worked example
A neutral example
An annual income of ₹12,00,000 with the ₹75,000 standard deduction produces a taxable income of ₹11,25,000, an estimated tax before cess, and a total tax after the 4% cess is added.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
India Income Tax Calculator questions
Does this include the old tax regime?+
No. This calculator estimates the new regime only, since it is the default regime for most taxpayers under current rules.
What is the Section 87A rebate?+
A rebate that reduces new-regime tax to zero when taxable income is at or below a government-set threshold, currently ₹7,00,000.
Does this account for surcharge on very high incomes?+
No. Surcharge for higher income bands is not modelled here.
Do these slabs change every year?+
Yes. Slabs, the standard deduction and the rebate threshold are set in the annual union budget and can change — this calculator does not fetch current values automatically.