Income Tax Calculator FY 2025-26
Tax Calculator FY 2025-26
Revised Income Tax Slabs (FY 2025-26)
| Income Slab (₹) | Tax Rate |
|---|---|
| 0 - 4,00,000 | 0% |
| 4,00,001 - 8,00,000 | 5% |
| 8,00,001 - 12,00,000 | 10% |
| 12,00,001 - 16,00,000 | 15% |
| 16,00,001 - 20,00,000 | 20% |
| 20,00,001 - 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Provisions on Income Tax (FY 2025-26)
Standard Deduction:
A standard deduction of ₹75,000 is available to salaried individuals.
Rebate Under Section 87A:
The rebate under Section 87A has been enhanced, ensuring that individuals with a taxable income (after deductions) of up to ₹12,00,000 are eligible for a rebate that brings their tax liability to zero. This means that individuals with a gross income of up to ₹12,75,000 will not have any tax liability after accounting for the standard deduction. Maximum Rebate Under Section 87A : 60,000
Marginal Relief:
Marginal relief ensures that taxpayers whose income slightly exceeds the rebate threshold do not end up with a tax liability that is disproportionately high compared to their actual income exceeding the threshold. This provision ensures a smooth transition in tax liability for incomes just above ₹12,75,000.
Free up to ₹12.75L (Salaried) / ₹12L (Non-Salaried). What next?
EX 01. Gross Income:₹12,75,000
- ✅ Standard Deduction Applied (₹75,000)
- ✅ Rebate Applied (₹60,000)
- ❌ Marginal Relief Not Needed
Taxable Income (after ₹75,000 deduction): ₹12,75,000 - ₹75,000 = ₹12,00,000
Tax Calculation (Before Rebate):
- ₹4,00,000 @ 0% = ₹0
- ₹4,00,000 @ 5% = ₹20,000
- ₹4,00,000 @ 10% = ₹40,000
Total Tax Before Rebate: ₹60,000
Rebate Applied (₹60,000) → Final Tax Payable: ₹0
EX 02. Gross Income: ₹12,76,000
- ✅ Standard Deduction Applied (₹75,000)
- ❌ Rebate Not Applied
- ✅ Marginal Relief Applied
Taxable Income (after ₹75,000 deduction): ₹12,76,000 - ₹75,000 = ₹12,01,000
Tax Calculation (Before Rebate):
- ₹4,00,000 @ 0% = ₹0
- ₹4,00,000 @ 5% = ₹20,000
- ₹4,00,000 @ 10% = ₹40,000
- ₹01,000 @ 15% = ₹150
Total Tax Before Rebate: ₹60,150
Applying Marginal Relief:
- Extra Income over ₹12,75,000 = ₹1,000
- Total Tax before relief = ₹60,150
- Since ₹60,150 > ₹1,000, marginal relief is applied to reduce tax to ₹1,000
Final Tax Payable: ₹1,000
EX 03. Gross Income: ₹13,51,000
- ✅ Standard Deduction Applied (₹75,000)
- ❌ Rebate Not Applied (Taxable income exceeds ₹12,00,000)
- ❌ Marginal Relief Not Applied (Total Tax < Extra Income)
Taxable Income (after ₹75,000 deduction): ₹13,51,000 - ₹75,000 = ₹12,76,000
Tax Calculation:
- ₹4,00,000 @ 0% = ₹0
- ₹4,00,000 @ 5% = ₹20,000
- ₹4,00,000 @ 10% = ₹40,000
- ₹76,000 @ 15% = ₹11,400
Total Tax Payable: ₹71,400 (No Rebate, No Margin Relief)
Explanation:
- ❌ No marginal relief, because Total Tax (₹71,400) **does not exceed** extra income (₹76,000).
- 💡 Extra Income = ₹13,51,000 (Gross Income) - ₹12,75,000 = ₹76,000.
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