Form 16 Tax Calculator

What does this tool compute from my Form 16 figures?

It starts from gross salary, subtracts the deductions allowed for the chosen regime, applies the slabs built into the tool, adds 4% health and education cess and compares the total with the TDS you enter. The last line shows either a refund due or additional tax payable. It is a check on Part B, not a substitute for filing the return.

Which deductions does each regime use?

New regime: only the standard deduction and professional tax are subtracted; HRA, LTA, other exemptions, 80C, NPS 80CCD(1B), 80D and other deductions are ignored. Old regime: the tool subtracts HRA, LTA, other exemptions, the standard deduction, professional tax, 80C capped at ₹1,50,000, NPS 80CCD(1B) capped at ₹50,000, and 80D and “other deductions” exactly as entered, with no cap.

Which standard deduction does the tool apply?

It applies ₹75,000 under the new regime and ₹50,000 under the old regime, labelled FY 2025-26. These are the figures built into this tool; check the standard deduction your employer used in Part B before relying on the result here.

How are the rebate and the zero-tax range handled?

The Section 87A rebate is built in as a zero-tax rule rather than as a fixed amount (up to ₹60,000 for the new regime and ₹12,500 for the old regime under the rules the tool follows). In the new regime the built-in rebate makes tax zero when taxable income is ₹12,00,000 or less. Just above that, the tool limits tax to the amount by which income exceeds ₹12,00,000, so a taxable income of ₹12,15,000 shows ₹15,000 of tax instead of the full slab tax. In the old regime tax is zero when taxable income is ₹5,00,000 or less, with no matching relief above it. The Income Tax Department’s current rules govern how the rebate applies to you.

What are the slabs built into the tool?

New regime (FY 2025-26 label): nil to ₹4,00,000, then 5%, 10%, 15%, 20%, 25% and 30% in ₹4,00,000 steps from ₹4,00,000, ₹8,00,000, ₹12,00,000, ₹16,00,000, ₹20,00,000 and ₹24,00,000. Old regime: nil to ₹2,50,000, 5% to ₹5,00,000, 20% to ₹10,00,000 and 30% above. These are the figures built into this tool, not a statement of current law.

What does the tool leave out?

Surcharge on high incomes, senior-citizen slabs, other income such as interest or capital gains, relief under Section 89, employer NPS under 80CCD(2), tax already paid on other income and any difference in how your employer computed TDS. Professional tax is deducted in both regimes in this tool; compare with your Form 16 if the totals differ.

Why does my result differ from the tax in Form 16?

Employers deduct TDS on projected income and the declarations you gave them, which may differ from the final figures you enter here. Perquisites, regime choice made late in the year, previous-employer salary and the items in the previous answer are the usual reasons. The Income Tax Department’s Form 26AS or the AIS gives the tax actually credited.