India
Asia
India operates a self-assessment tax system with progressive income tax rates from 0% to 30%, GST on goods and services, and TDS on payments. The tax year runs April 1 to March 31 with returns due July 31 for individuals.
India Tax Cheatsheet (FY 2025-26 (AY 2026-27))
Key tax metrics at a glance for residents and expats.
How Taxation Works in India
Understand the basics of India's tax system, who pays tax, and how rates apply to individuals and businesses.
Tax System
India uses a self-assessment tax system. Taxpayers calculate their own tax liability based on their income, deductions, and applicable tax rates. Tax is collected through three main mechanisms: TDS (Tax Deducted at Source), advance tax (quarterly payments), and self-assessment tax (paid with the tax return). The Income Tax Department verifies returns through scrutiny assessments and best judgment assessments.
Residents
Any individual earning income in India is liable to pay tax. This includes salaried individuals, self-employed professionals, business owners, and investors. Resident individuals are taxed on their worldwide income, while non-residents are taxed only on income sourced in India. Companies, whether domestic or foreign, pay tax on Indian-sourced income.
Non-Residents
Resident individuals are taxed on their worldwide income. Non-resident individuals are taxed only on income earned or received in India. The residential status is determined based on the number of days spent in India during the financial year and the preceding four years. RNOR (Resident but Not Ordinarily Resident) individuals have a hybrid status — taxed on Indian income and foreign income received in India.
Individuals
India has a progressive income tax system with rates ranging from 0% to 30%. The new regime offers concessional rates with fewer deductions, while the old regime has lower rates but allows extensive deductions under Sections 80C, 80D, HRA, and others. Salaried individuals can claim standard deduction of ₹75,000 in the new regime.
Businesses
Domestic companies pay corporate tax at 22% (reduced rate without exemptions) or 30% (with exemptions). Foreign companies are taxed at 40% on Indian-sourced income. Surcharge and health and education cess apply on top of the base tax rate. Small companies with turnover below the threshold may benefit from reduced rates.
Financial Year vs Assessment Year
The Financial Year (FY) is the year in which income is earned (April 1 – March 31). The Assessment Year (AY) is the following year when the income is assessed and taxed.
Residential Status
Your tax liability in India depends on your residential status — Resident, Resident but Not Ordinarily Resident (RNOR), or Non-Resident. Each status has different tax implications.
Gross Total Income
The sum of all income heads (salary, house property, business/profession, capital gains, and other sources) before any deductions or exemptions.
Tax Deducted at Source (TDS)
A tax collection mechanism where tax is deducted at the point of payment. Common for salary, interest, rent, and professional fees.
Important Tax Information
Key facts about India's tax system to help you understand your obligations.
Tax Year
FY 2025-26 (AY 2026-27)
Filing Deadline
July 31, 2025 (individuals); September 30, 2025 (businesses)
Tax Authority
Currency
INR
Residency Rules
Resident individuals are taxed on their worldwide income. Non-resident individuals are taxed only on income earned or received in India. The residential status is determined based on the number of days spent in India during the financial year and the preceding four years. RNOR (Resident but Not Ordinarily Resident) individuals have a hybrid status — taxed on Indian income and foreign income received in India.
Employer Withholding
Employers deduct TDS (Tax Deducted at Source) from employee salaries monthly based on applicable tax slabs and remit it to the government. TDS deducted can be claimed as a credit against your total tax liability when filing your return.
Payment Deadline
Advance tax installments due on June 15, September 15, December 15, and March 15
Tax Brackets & Rates
FY 2025-26 (AY 2026-27) income tax brackets for India. Tax is calculated progressively — higher portions of income are taxed at higher rates.
Progressive Tax
Higher portions of income are taxed at higher rates. Only the income within each bracket is taxed at that bracket's rate.
Marginal Rate
The rate applied to your last dollar of income. It determines the tax on your next dollar earned.
Effective Rate
The average rate across all your income. Total tax divided by total income gives your true tax burden.
| Bracket | Rate | Threshold | Notes |
|---|---|---|---|
| 0% | 0% | ₹0 – ₹4,00,000 | New regime; rebate under Section 87A |
| 5% | 5% | ₹4,00,001 – ₹8,00,000 | New regime |
| 10% | 10% | ₹8,00,001 – ₹12,00,000 | New regime |
| 15% | 15% | ₹12,00,001 – ₹16,00,000 | New regime |
| 20% | 20% | ₹16,00,001 – ₹20,00,000 | New regime |
| 25% | 25% | ₹20,00,001 – ₹24,00,000 | New regime |
| 30% | 30% | Above ₹24,00,000 | New regime; old regime rates apply with deductions |
Common Deductions in India
Deductions reduce your taxable income. Here are the most common deductions available to India taxpayers.
Standard Deduction
₹75,000 for salaried individuals under the new regime. Standard deduction is a fixed amount that reduces taxable income without requiring documentation of specific expenses.
Section 80C
Up to ₹1,50,000 deduction for investments in PPF, ELSS, NSC, life insurance premiums, and more.
Section 80D
Deduction for health insurance premiums — up to ₹25,000 for self and family (₹50,000 for senior citizens).
HRA
House Rent Allowance deduction for salaried individuals paying rent.
Standard Deduction
₹75,000 standard deduction for salaried individuals (new regime).
Section 80TTA
₹10,000 deduction on savings account interest.
Section 80E
Deduction on interest paid on education loans.
Tax Credits in India
Tax credits directly reduce your tax liability. Here are the major credits available in India.
Section 87A Rebate
Rebate of up to ₹12,500 for individuals with taxable income up to ₹7,00,000 in the new regime.
Surcharge
10% surcharge on income above ₹50,00,000; 15% above ₹1,00,00,000; 25% above ₹2,00,00,000; 37% above ₹5,00,00,000.
Health and Education Cess
4% cess on income tax and surcharge.
Who Should Use This Calculator
Our India tax calculators are designed for a wide range of users. See if they match your situation.
Salaried Employees
Employees working for companies and organizations who receive a regular salary. Our calculator helps estimate your tax liability under both old and new regimes.
Freelancers & Contractors
Self-employed professionals, consultants, and gig economy workers who receive income without TDS or with different withholding rules.
Business Owners
Proprietors, partners, and directors who earn income from business or profession and need to estimate advance tax and self-assessment tax.
Expats in India
Non-resident Indians (NRIs) and foreign professionals working in India who need to understand their tax obligations under Indian tax laws.
Investors
Individuals with income from investments, capital gains, dividends, or rental income who need to calculate their total tax liability.
How to Use the India Tax Calculator
Get an accurate tax estimate in just a few steps. Here is how to use our calculator effectively.
Enter Income
Input your annual salary, other income, and any deductions such as HRA, Section 80C, or home loan interest.
Choose Tax Year & Regime
Select the assessment year and choose between the old tax regime (with deductions) or the new tax regime (simplified rates).
Review Deductions
Verify all applicable deductions and exemptions. The calculator will apply the correct standard deduction automatically.
Calculate
Click Calculate to see your gross income, total deductions, taxable income, tax liability, cess, effective rate, and take-home pay.
Review Results
Examine your results. Use the effective rate to understand your true tax burden. Consider adjusting investments to optimize your tax position.
Frequently Asked Questions
Quick answers to common questions about India taxation, filing requirements, and using our calculators.
What is the difference between the old and new tax regime?
The old regime offers lower tax rates but allows deductions and exemptions (Section 80C, HRA, etc.). The new regime has concessional rates but limited deductions — choose based on your deductions and income level.
What is the ITR filing deadline?
July 31st for individuals unless extended by the government. Business taxpayers have a different deadline (usually September 30th).
Who is a tax resident in India?
An individual is a tax resident if they stay in India for 182 days or more in a financial year, or 60 days or more and have been in India for 365 days or more in the preceding 4 years.
What is TDS and how does it work?
TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making a payment. The deducted amount is deposited with the government and credited to the payee's tax account.
How do I file my ITR online?
Visit the Income Tax e-filing portal, log in with your PAN, select the appropriate ITR form, fill in your income and deductions, and submit. You can also use the new tax regime calculator to estimate your liability.
Explore India Tax
Trust & Transparency
Last Updated
2025-06-15
Educational Disclaimer
The tax information and calculators on this page are for educational and informational purposes only. They do not constitute professional tax advice. Tax laws are subject to change. Always consult a qualified tax professional for advice specific to your situation.
Calculation Methodology
Tax calculations follow the official Indian Income Tax Act, 1961 and Finance Act provisions. Brackets and rates are sourced from the latest CBDT notifications. The new regime rates are applied as per the Finance Act 2024-25. Deductions and exemptions are calculated based on the applicable regime selected by the taxpayer.
Data Sources
- Central Board of Direct Taxes (CBDT)
- Ministry of Finance, Government of India
- Income Tax Department Official Portal
Privacy-First
All calculations are performed locally in your browser. No personal data is collected, stored, or transmitted to any server. Your financial information never leaves your device.
Official Authority
For the most accurate and up-to-date information, visit the official government tax authority:Central Board of Direct Taxes (CBDT)
Country Tax Overview
