What is an income tax calculator?
An income tax calculator is a free online tool that estimates how much income tax you are likely to pay in a financial year.
You enter your annual income, eligible deductions, and a few other details. The calculator applies the relevant tax slabs, rebates, and cess to show your estimated liability under both the old and new tax regimes — side by side — and recommends which one results in a lower tax outgo for your specific situation.
The Chola Securities income tax calculator is built for FY 2025-26 (Assessment Year 2026-27). As of 2026, this covers the most current tax rules applicable to individual taxpayers.
Old regime vs new regime — what is the difference?
India offers two income tax regimes, and individual taxpayers can choose the one that costs them less each year.
| Feature |
Old regime |
New regime |
| Tax rates |
Higher |
Lower |
| Standard deduction |
₹50,000 |
₹75,000 |
| Section 80C deductions |
Allowed (up to ₹1.5 lakh) |
Not allowed |
| Section 80D deductions |
Allowed |
Not allowed |
| HRA exemption |
Allowed |
Not allowed |
| Home loan interest |
Allowed |
Not allowed |
| Section 87A rebate |
Up to ₹5,00,000 taxable income |
Up to ₹12,00,000 taxable income |
| Default regime |
No |
Yes |
The old regime rewards taxpayers who invest and spend in tax-saving avenues. The new regime works better for those who do not have large deductions to claim. The right answer depends on your income level and the deductions available to you.
New regime tax slabs for FY 2025-26
Under the new regime, a standard deduction of ₹75,000 is applied to salary income. Tax is then calculated on your taxable income using the following slabs:
| Taxable income (₹) |
Tax rate |
| Up to 4,00,000 |
NIL |
| 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% |
The Section 87A rebate makes your tax effectively NIL when taxable income is up to ₹12,00,000 under the new regime. A 4% health and education cess is added on top of the computed tax.
Total tax = (tax as per slabs − 87A rebate) × 1.04
Note: this calculator does not model surcharge or marginal relief applicable to very high incomes. Figures at the upper income range are therefore indicative. Consult a qualified tax professional before filing your return.
How do I use Chola Securities' income tax calculator?
Using the calculator takes three steps.
- Enter your annual income for FY 2025-26.
- Add the deductions you are eligible to claim — such as Section 80C investments, Section 80D premiums, and HRA — so the old regime can be assessed accurately.
- Review the result, which shows your estimated tax under both regimes side by side and recommends the cheaper option for your numbers.
Adjust your inputs at any time to see how additional savings or deductions change your liability under each regime.
Why use the income tax calculator?
- Compare both regimes instantly without manually applying slab rates, rebates, and cess.
- Decide whether to opt out of the new regime before submitting your investment declarations to your employer.
- See how increasing your 80C investments changes your tax liability under the old regime.
- Plan quarterly advance tax payments based on your estimated liability for the year.