Income Tax on ₹40.0 L
Get instant tax calculation on ₹40.0 L with the latest FY 2025-26 tax slabs and ₹75,000 standard deduction.
Enter your total annual salary/income before any deductions
Updated for FY 2025-26 (New Tax Regime)
Includes ₹75,000 standard deduction
Zero tax up to ₹12 lakh income
Your Tax Calculation
Based on FY 2025-26 tax slabs with ₹75,000 standard deduction
Your Total Tax Liability
₹7,57,500
On annual income of ₹40,00,000
Income Breakdown
Tax Breakdown by Slab
- 30% on ₹15,25,000 = ₹4,57,500
- 25% on ₹4,00,000 = ₹1,00,000
- 20% on ₹4,00,000 = ₹80,000
- 15% on ₹4,00,000 = ₹60,000
- 10% on ₹4,00,000 = ₹40,000
- 5% on ₹4,00,000 = ₹20,000
- Total Tax Payable: ₹7,57,500
Standard Deduction
₹75,000
Tax Rebate Limit
₹12 Lakh
New Regime
FY 2025-26
How to Calculate Income Tax in India?
Income tax calculation in India for FY 2025-26 follows the new tax regime with updated slabs and increased standard deduction. Our free income tax calculator helps you estimate your tax liability accurately based on your annual income.
Understanding the New Tax Regime 2025-26
The government of India has introduced significant changes in the new tax regime for Financial Year 2025-26. The standard deduction has been increased to ₹75,000 from the previous ₹50,000, providing more tax relief to salaried individuals. Additionally, the rebate under Section 87A now applies to income up to ₹12 lakh, meaning no tax for earnings below this threshold.
Income Tax Slabs for FY 2025-26
- ₹0 to ₹4,00,000: Nil tax (after standard deduction)
- ₹4,00,001 to ₹8,00,000: 5% tax on income above ₹4 lakh
- ₹8,00,001 to ₹12,00,000: 10% tax on income above ₹8 lakh
- ₹12,00,001 to ₹16,00,000: 15% tax on income above ₹12 lakh
- ₹16,00,001 to ₹20,00,000: 20% tax on income above ₹16 lakh
- ₹20,00,001 to ₹24,00,000: 25% tax on income above ₹20 lakh
- Above ₹24,00,000: 30% tax on income above ₹24 lakh
Who Should Use This Calculator?
This income tax calculator is perfect for salaried employees, professionals, and business owners who want to:
- Estimate their annual tax liability for tax planning
- Compare new tax regime with old regime benefits
- Understand tax breakdown across different income slabs
- Calculate take-home salary after tax deductions
- Plan investments for tax saving
Benefits of the New Tax Regime
- Higher Standard Deduction: ₹75,000 standard deduction applicable to all salaried individuals
- Increased Rebate Limit: No tax for income up to ₹12 lakh under Section 87A
- Lower Tax Rates: Progressive tax slabs with reasonable rates
- Simplified Filing: No need to claim multiple deductions
Tax Comparison: Old vs New Regime
Compare your tax liability across different tax regimes to see how much you can save with the new tax structure:
| Income | Old Regime | 2024 Regime | 2025 Regime |
|---|---|---|---|
| ₹5,00,000 | ₹12,500 | ₹0 | ₹0 |
| ₹10,00,000 | ₹37,500 | ₹67,500 | ₹0 |
| ₹15,00,000 | ₹1,37,500 | ₹1,75,000 | ₹93,750 |
| ₹20,00,000 | ₹2,37,500 | ₹3,22,500 | ₹1,85,000 |
| ₹25,00,000 | ₹3,37,500 | ₹4,72,500 | ₹3,07,500 |
| ₹50,00,000 | ₹10,87,500 | ₹12,22,500 | ₹10,57,500 |
| ₹75,00,000 | ₹18,37,500 | ₹19,72,500 | ₹18,07,500 |
| ₹1,00,00,000 | ₹25,87,500 | ₹27,22,500 | ₹25,57,500 |
Frequently Asked Questions
What is the standard deduction for FY 2025-26?
The standard deduction for FY 2025-26 is ₹75,000 for salaried individuals under the new tax regime. This amount is automatically deducted from your gross salary before calculating taxable income.
Is the new tax regime mandatory?
No, the new tax regime is optional. You can choose between the old and new regime each year while filing your tax returns. However, the new regime is the default option from FY 2023-24 onwards.
What is the tax rebate under Section 87A?
Under Section 87A, individuals with taxable income up to ₹12 lakh (after standard deduction) get a full tax rebate in the new regime. This means zero tax liability for income up to ₹12.75 lakh (₹12 lakh + ₹75,000 standard deduction).
Can I claim deductions under the new tax regime?
The new tax regime offers lower tax rates but doesn't allow most deductions like 80C (investments), 80D (insurance), HRA, etc. Only the standard deduction of ₹75,000 is available. Compare both regimes to see which is more beneficial for you.
How accurate is this income tax calculator?
Our calculator uses the official tax slabs and rates notified by the Income Tax Department for FY 2025-26. It provides accurate estimates for salaried income under the new regime. For complex cases involving multiple income sources or specific deductions, consult a tax professional.
When should I file my income tax return?
The due date for filing income tax returns for individuals (whose accounts don't need auditing) is typically July 31st of the assessment year. For FY 2025-26, you would file returns by July 31, 2026.