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BAJAJ ASSET MANAGEMENT LIMITED.
BAJAJ ASSET MANAGEMENT LIMITED.
This tax calculator is provided for informational and estimation purposes only. While we strive to ensure accuracy, the calculations are based on prevailing tax laws, assumptions, and user inputs. Actual tax liability may vary based on specific circumstances, exemptions, deductions, and updates in tax regulations.
Users are advised to consult a qualified tax professional or refer to official government sources (such as the Income Tax Department of India) before making any financial or tax-related decisions. We do not take responsibility for any errors, omissions, or financial consequences resulting from the use of this tool.
By using this calculator, you acknowledge and agree that the provider of this tool shall not be held liable for any direct or indirect losses arising from its use.
An income tax calculator is a free online tool that helps you get an estimate of how much tax you may need to pay. You simply enter details such as your income, deductions, exemptions and other relevant information, and the calculator uses the applicable tax rules to estimate your tax liability.
Use this income tax calculator for AY 2026–27 to estimate tax on income earned during FY 2025–26 and compare the old and new regimes.
Based on the details you enter, it estimates your gross total income, taxable income, rebate eligibility and total tax payable. This can make it easier to understand how your income may be taxed and plan better before filing your income tax return.
The calculator is an aid, not a prediction tool. It may provide only an indicative picture.
Using an income tax calculator can help you estimate your tax liability and compare the old and new tax regimes. Follow these simple steps to calculate your taxes:
2. Add eligible deductions:
3. Calculate your tax: Once you have entered all the required details, click on the calculate option to generate your tax estimate.
4. Review the results: The calculator will display your estimated taxable income and total tax liability based on the information provided.
5. Compare tax regimes: The tool will also compare your tax liability under the old and new tax regimes and indicate which regime may be more beneficial based on your income, deductions and exemptions.
Calculating income tax on salary involves determining your taxable income and then applying the applicable income tax slabs under your chosen tax regime. In simple terms, the process generally works as follows:
3. Determine your taxable income: After reducing eligible exemptions and deductions from your income, you arrive at your taxable income.
4. Apply the relevant income tax slabs: Your taxable income is taxed according to the applicable slab rates, with different portions of your income taxed at different rates under India’s progressive tax system.
5. Add cess and applicable surcharge: Once the tax amount is calculated, Health and Education Cess and surcharge (where applicable) are added to determine the final tax liability.
An income tax calculator simplifies this process by automatically applying the relevant tax slabs, deductions and rebate provisions based on the details entered. This can help you estimate your tax liability quickly and compare the old and new tax regimes before filing your income tax return.
An old vs new tax regime calculator helps you compare estimated tax liabilities using your income, eligible deductions and exemptions.
The following comparison shows the slab rates for individuals below 60 years. Higher basic exemption limits apply to resident senior citizens under the old regime:
| Old-regime taxable income | Tax rate | New-regime taxable income | Tax rate |
| Up to ₹2.5 lakh | Nil | Up to ₹4 lakh | Nil |
| Above ₹2.5 lakh and up to ₹5 lakh | 5.00% | Above ₹4 lakh and up to ₹8 lakh | 5% |
| Above ₹5 lakh and up to ₹10 lakh | 20% | Above ₹8 lakh and up to ₹12 lakh | 10% |
| Above ₹10 lakh | 30.00% | Above ₹12 lakh and up to ₹16 lakh | 15% |
| – | – | Above ₹16 lakh and up to ₹20 lakh | 20% |
| – | – | Above ₹20 lakh and up to ₹24 lakh | 25% |
| – | – | Above ₹24 lakh | 30% |
Key deductions and tax benefits
| Tax Benefit | Old Tax Regime | New Tax Regime |
| Standard deduction | 50,000 | ₹ 75,000 |
| Rebate under Section 87A | Up to ₹12,500 (subject to conditions) | Up to ₹60,000 (subject to conditions) |
| Section 80C deduction | Available | Not available |
| Section 80D deduction | Available | Not available |
| HRA exemption | Available | Not available |
| Home loan interest on self-occupied property | Available | Not available |
| NPS deduction | Available (subject to conditions) | Limited availability |
| Set-off of house property losses | Available | Not available |
Surcharge and Health and Education Cess
Surcharge applies to income tax when total taxable income exceeds ₹50 lakh:
| Total taxable income | Old-regime surcharge | New-regime surcharge |
| Up to ₹50 lakh | Nil | Nil |
| Above ₹50 lakh and up to ₹1 crore | 10% | 10% |
| Above ₹1 crore and up to ₹2 crore | 15% | 15% |
| Above ₹2 crore and up to ₹5 crore | 25% | 25% |
| Above ₹5 crore | 37% | 25% |
Surcharge on tax attributable to certain capital gains and dividend income is capped at 15%. Marginal relief may apply near the relevant income thresholds. Health and Education Cess is charged at 4% on income tax plus surcharge.
Income tax slabs are income ranges that determine how much tax you need to pay on your taxable income. The tax rate applicable to you depends on the portion of income that falls within each slab.
India follows a progressive tax system, which means higher income levels are taxed at higher rates. However, a higher tax rate applies only to the income within that specific slab and not to your entire income.
For example, if your taxable income is ₹10 lakh under the new tax regime, a part of your income may be tax-free, the next portion may be taxed at 5%, and the remaining portion may be taxed at 10%. You do not pay 10% tax on the entire ₹10 lakh.
Taxpayers can choose between the old tax regime and the new tax regime, each with its own tax slabs and benefits. While the new tax regime offers lower tax rates with fewer deductions, the old tax regime allows you to claim various deductions and exemptions, subject to applicable conditions.
Understanding income tax slabs can help you estimate your tax liability and plan your finances more effectively.
The new tax regime follows a slab-based tax structure, where different portions of your taxable income are taxed at different rates. For FY 2025–26 (AY 2026–27), the applicable income tax slabs under the new tax regime are as follows:
| Taxable Income | Tax Rate |
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh | 5% |
| ₹8 lakh to ₹12 lakh | 10% |
| ₹12 lakh to ₹16 lakh | 15% |
| ₹16 lakh to ₹20 lakh | 20% |
| ₹20 lakh to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
The new tax regime was introduced under Section 115BAC of the Income Tax Act, 1961 to make income tax calculations simpler and easier to understand. It offers lower tax rates across different income slabs and is the default tax regime for FY 2025–26 (AY 2026–27). However, eligible taxpayers can still choose the old tax regime if it better suits their financial needs.
The main difference between the old and new tax regimes is simple. The new tax regime offers lower tax rates, but most deductions and exemptions available under the old regime cannot be claimed. For instance, benefits such as deductions under Section 80C and Section 80D, House Rent Allowance (HRA), and home loan interest on a self-occupied property are generally not available under the new tax regime.
Some of the key features of the new tax regime are:
The new tax regime may suit individuals who claim fewer deductions and exemptions. A new regime tax calculator can help you estimate tax under these slabs and compare it with the old regime.
Let us understand how income tax is calculated under the new tax regime with a simple example. Assume Rahul Sharma, a salaried professional, has:
The taxable income would be calculated as follows:
| Particulars | Amount (₹) |
| Salary income | ₹20,00,000 |
| Less: Standard deduction | ₹75,000 |
| Net salary income | ₹19,25,000 |
| Add: Income from other sources | ₹50,000 |
| Total taxable income | ₹19,75,000 |
Based on the applicable income tax slabs under the new tax regime, the tax liability would be calculated as follows:
| Tax Slab | Tax Amount (₹) |
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh @ 5% | ₹20,000 |
| ₹8 lakh to ₹12 lakh @ 10% | ₹40,000 |
| ₹12 lakh to ₹16 lakh @ 15% | ₹60,000 |
| ₹16 lakh to ₹19.75 lakh @ 20% | ₹75,000 |
| Total income tax | ₹1,95,000 |
| Health and Education Cess @ 4% | ₹7,800 |
| Total tax liability | ₹2,02,800 |
In this example, the total tax liability is ₹2,02,800 under the new tax regime. Actual tax liability may vary depending on income sources, deductions, exemptions, rebates and applicable tax provisions.
The figures shown are for illustrative purpose only.
Consider the example of Amit, a salaried employee who opts for the old tax regime and claims eligible deductions to reduce his taxable income. Assume Amit has:
The taxable income would be calculated as follows:
| Particulars | Amount (₹) |
| Salary income | ₹20,00,000 |
| Less: Standard deduction | ₹50,000 |
| Net salary income | ₹19,50,000 |
| Add: Income from other sources | ₹50,000 |
| Gross total income | ₹20,00,000 |
| Less: Section 80C deduction | ₹1,50,000 |
| Less: Section 80D deduction | ₹25,000 |
| Total taxable income | ₹18,25,000 |
Based on the applicable income tax slabs under the old tax regime, the tax liability would be calculated as follows:
| Tax Slab | Tax Amount (₹) |
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh to ₹5 lakh @ 5% | 12,500 |
| ₹5 lakh to ₹10 lakh @ 20% | 1,00,000 |
| ₹10 lakh to ₹18.25 lakh @ 30% | 2,47,500 |
| Total income tax | 3,60,000 |
| Health and Education Cess @ 4% | 14,400 |
| Total tax liability | 3,74,400 |
In this example, the total tax liability is ₹3,74,400 under the old tax regime after considering the standard deduction and eligible deductions under Sections 80C and 80D. Actual tax liability may vary depending on income sources, deductions, exemptions and applicable tax provisions.
The figures shown are for illustrative purpose only.
Under the new tax regime, eligible taxpayers can benefit from a rebate under Section 87A that can reduce their income tax liability to zero if their taxable income does not exceed ₹12 lakh, subject to applicable conditions.
Let us understand this with a simple example.
Assume Priya is a salaried employee with an annual salary of ₹12.75 lakh and opts for the new tax regime. Since salaried individuals are eligible for a standard deduction of ₹75,000, her taxable income is reduced to ₹12 lakh.
| Particulars | Amount (₹) |
| Annual salary income | ₹12,75,000 |
| Less: Standard deduction | ₹75,000 |
| Taxable income | ₹12,00,000 |
The tax on her taxable income would be calculated as follows:
| Tax Slab | Tax Amount (₹) |
| Up to ₹4 lakh | Nil |
| ₹4 lakh to ₹8 lakh @ 5% | ₹20,000 |
| ₹8 lakh to ₹12 lakh @ 10% | ₹40,000 |
| Total tax before rebate | ₹60,000 |
| Less: Rebate under Section 87A | ₹-60,000 |
| Final tax liability | Nil |
In this example, the tax calculated under the applicable income tax slabs is ₹60,000. Since Priya is eligible for a rebate of up to ₹60,000 under Section 87A, her entire tax liability is offset, resulting in zero tax payable.
This benefit is available only under the new tax regime and is subject to the conditions specified under the Income Tax Act, 1961. Certain types of income, such as some capital gains, may not qualify for this rebate.
The figures shown are for illustrative purpose only.
Resident individuals aged 60 years or above but below 80 years may be eligible for a higher basic exemption limit under the old tax regime. The applicable income tax slabs for senior citizens for FY 2025–26 (AY 2026–27) are:
| Taxable Income | Tax Rate |
| Up to ₹3 lakh | Nil |
| ₹3 lakh to ₹5 lakh | 5% |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Resident individuals aged 80 years or above are classified as super senior citizens under the Income Tax Act, 1961. Under the old tax regime, they benefit from a higher basic exemption limit than other taxpayers.
The applicable income tax slabs for super senior citizens for FY 2025–26 (AY 2026–27) are:
| Taxable Income | Tax Rate |
| Up to ₹5 lakh | Nil |
| ₹5 lakh to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
These concessional slab rates are available only under the old tax regime. Taxpayers may compare the old and new tax regimes using an income tax calculator to understand which option may be more suitable based on their income and eligible deductions.
For FY 2025–26 (AY 2026–27), individual taxpayers must file an ITR if their income exceeds the following limits, calculated before specified deductions such as Section 80C and certain capital-gains exemptions:
| Tax regime / taxpayer category | Income above which filing is mandatory |
| New regime: all ages | ₹4 lakh |
| Old regime: individuals below 60 years | ₹2.5 lakh |
| Old regime: resident individuals aged 60 to below 80 years | ₹3 lakh |
| Old regime: resident individuals aged 80 years or above | ₹5 lakh |
| Old regime: non-resident individuals, regardless of age | ₹2.5 lakh |
The ₹12 lakh rebate under the new regime does not remove the filing requirement. You must still file if your income exceeds the applicable filing limit, even when the rebate reduces your tax to zero.
Filing is also mandatory, even below these income limits, if any one of the following applies during the financial year:
Resident individuals ordinarily resident in India must also file if they hold overseas assets, including financial interests, or have signing authority in an overseas account. Overseas-asset beneficiaries are also covered, subject to the statutory exception where the income is included in the beneficial owner’s income.
Filing an income tax return is not just about meeting a tax requirement. It can also help create financial records that may be useful for various administrative and financial purposes:
Helps claim tax refunds
Filing an ITR allows you to claim a refund if excess tax has been deducted from your income through Tax Deducted at Source (TDS).
Acts as proof of income
An income tax return serves as a widely accepted income document that may be required when applying for financial products and services.
Supports loan applications
Banks and financial institutions often ask for ITR documents to assess income stability and repayment capacity before approving loans.
Simplifies visa applications
Many embassies and consulates may request ITR records as part of the visa application process to verify financial standing.
Enables carry forward of certain losses
Filing your return on time can help you carry forward eligible capital losses and set them off against future gains, subject to applicable tax rules.
Helps maintain financial records
Regular ITR filing creates a documented financial history that can be useful for future financial and administrative requirements.
Encourages better tax planning
Understanding your income, deductions and tax liability each year can help you make more informed tax-planning decisions.
Helps avoid penalties and compliance issues
Filing your return within the prescribed timelines can help you stay compliant with tax regulations and avoid applicable penalties.
Apply the relevant slab rates to your taxable income, subtract any eligible rebate, and add applicable surcharge and cess. A tax calculator helps work out the estimate.
Enter your income, eligible exemptions and deductions, then calculate your tax. The tool compares your estimated liability under the old and new regimes.
You can enter salary, house property income and other income supported by the tool. Capital gains and business income may require separate calculations that this calculator does not provide.
An online income tax calculator provides a reliable estimate based on the information entered and the applicable tax rules. However, your final tax liability may differ depending on your actual income, deductions and tax treatment.
For FY 2025–26, the basic exemption limit is ₹4 lakh. Eligible resident individuals with taxable income up to ₹12 lakh can pay zero tax through the Section 87A rebate. Tax on special-rate income, such as certain capital gains, is treated separately.
The old regime allows more deductions and exemptions, while the new regime offers different slabs with fewer deductions. An old vs new tax regime calculator helps you compare the tax payable under each.
Yes. Salaried individuals can generally choose between the old and new tax regimes every financial year. Different rules may apply to taxpayers with business or professional income.
Eligible deductions include the standard deduction on salary or pension and employer NPS contributions, subject to applicable conditions. Common deductions such as Sections 80C and 80D are not available.
You may be required to file an income tax return if your income exceeds the applicable exemption limit or if you meet certain conditions prescribed under the Income Tax Act, 1961, even when no tax is payable.
You can file after the relevant financial year ends and the applicable return form and filing facility become available. Check the Income Tax Department’s announced deadline for your taxpayer category.
Exemptions reduce taxable income directly (e.g., HRA, LTA). Deductions are amounts subtracted from income before tax is calculated (e.g., 80C, 80D under the old regime of the Income Tax Act, 1961).
Certain incomes like agricultural income, gratuity (within limits), and public provident fund maturity amount including interest etc. are tax-free.
The Union Budget 2025 revised the tax slabs for the new regime of the Income Tax Act, 1961 and increased the rebate limit to Rs. 60,000. This effectively makes incomes up to Rs. 12 lakh tax-free (after claiming rebate).
For FY 2025–26 (AY 2026–27), eligible salaried individuals and pensioners can claim ₹75,000 or their salary or pension income, whichever is lower. This is the deduction applicable when using a new tax regime calculator for that period.
No, not everyone is required to file an income tax return. Filing generally depends on your total income and other conditions prescribed under the Income-tax Act, and it may be mandatory in certain specified cases even if your income is below the applicable exemption limit.
No. The Bajaj AMC Income Tax Calculator estimates your income tax liability based on the income, exemptions and deductions you enter, but it does not separately calculate TDS deducted or payable. TDS is deducted by the payer according to the applicable tax provisions.
For FY 2025–26 (AY 2026–27), tax on ₹20 lakh of taxable income under the new regime is ₹2,08,000, including 4% cess. If ₹20 lakh is your gross annual salary, tax is ₹1,92,400 after the ₹75,000 standard deduction, assuming no other income or adjustments.
Yes. Inform your employer so salary TDS reflects your choice. If you do not, the employer generally applies the default new regime.
No. HRA exemption is available under the old regime, subject to eligibility. An income tax calculator for the new regime should exclude this exemption.
It can help estimate annual tax liability, but it does not calculate advance-tax instalments or adjust for tax already paid.
For FY 2025–26, eligible resident individuals can claim up to ₹12,500 under the old regime on taxable income up to ₹5 lakh. Under the new regime, the rebate is up to ₹60,000 on taxable income up to ₹12 lakh, subject to restrictions on special-rate income.
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The calculator alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. This tool is created to explain basic financial / investment related concepts to investors. The tool is created for helping the investor take an informed investment decision and is not an investment process in itself. Bajaj AMC has tied up with AdvisorKhoj for integrating the calculator to the website. Mutual Fund does not provide guaranteed returns. Also, there is no assurance about the accuracy of the calculator. Past performance may or may not be sustained in future, and the same may not provide a basis for comparison with other investments. Investors are advised to seek professional advice from financial, tax and legal advisor before investing in mutual funds.
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Our Investment Philosophy reflects what we, as an organisation, believe will generate a good return on equity investment for our investors in the long term. It dictates our goals and guides decision making.
Alpha (a) is a term used in investing to describe an investment strategy’s ability to beat the market.
Alpha is thus also often referred to as excess return or the abnormal rate of return in relation to a benchmark, when adjusted for risk. Essentially, it means doing better than the crowd without taking disproportionate risk.
Collecting superior information
Analysts and portfolio managers strive to collect superior information about the business and the management of the company. They try to generate superior earnings forecast and the balance strength of the company and the industry, thereby trying to 'beat the market' on information edge. This is an important source of alpha for an investor. However, over the years, retaining the information edge has become more difficult and expensive. With a whole lot of investors trying to collect superior information, how can an investor be sure to continuously have accurate and material information about the companies, ahead of others, all the time?
Processing information better
Even if you don't have material information earlier than the crowd, you can still generate better outcomes if you are able to process this information better. Investors develop models and algorithms with enhanced predictive powers to forecast the next move. Fund managers who invest based on some pure formal analytical models are quantitative managers. Here, the goal is to try and beat other investors based on the sophistication of procedures or analytics. The analytical edge can be quite useful until it gets copied by many, and then it may stop generating superior returns.
Exploiting behavioural biases
As the name suggests, this edge is achieved by superior behaviour in reacting to the inputs available to maximise alpha. Modern finance assumes people behave with extreme rationality. However, researchers in behavioural finance have shown that this is not true. Moreover, these deviations from rationality are often systematic. Behavioural managers try to exploit situations where securities are mispriced by the market because of behavioural factors. At Bajaj AMC, we endeavour to combine the best of these edges.
