A UTILITY 365 PROFESSIONAL TOOL | FY 2025-26
Total Income
Taxable Balance
Total Tax Owed
POST-TAX BREAKDOWN
Planning your wealth journey requires precision in tax estimation.
This Income Tax Calculator Pro by Utility 365 is updated for the FY 2025-26 (Assessment Year 2026-27) New Tax Regime. Our robust engine calculates tax based on the latest 7-slab system introduced in the Union Budget 2025. We prioritize ease of use by providing bi-directional synced inputs and a full ledger breakdown. The math automatically factors in the Standard Deduction of ₹75,000 and the Section 87A Tax Rebate (which makes taxable income up to ₹12 Lakh effectively tax-free), ensuring salaried professionals across India can accurately plan their Wealth Journey with 100% precision.
Marginal Relief is a critical tax-saving provision designed to prevent a situation where the tax payable on your income exceeds the incremental income earned above a certain threshold. Under the New Tax Regime for FY 2025-26, a full rebate is available for taxable income up to ₹12 Lakh. However, if your taxable income slightly exceeds ₹12 Lakh (e.g., ₹12,10,000), your slab-based tax would normally be much higher than the extra ₹10,000 you earned. Marginal Relief caps your tax liability so that the total tax increase is not more than the incremental income above ₹12 Lakh, ensuring you aren't penalized for earning slightly more.
The Union Budget 2025 revised the slabs under the default New Tax Regime (Section 115BAC) for FY 2025-26 as follows: Income up to ₹4,00,000 is NIL; ₹4,00,001 – ₹8,00,000 is taxed at 5%; ₹8,00,001 – ₹12,00,000 at 10%; ₹12,00,001 – ₹16,00,000 at 15%; ₹16,00,001 – ₹20,00,000 at 20%; ₹20,00,001 – ₹24,00,000 at 25%; and any income above ₹24,00,000 is taxed at 30%. With the enhanced ₹75,000 Standard Deduction and the Section 87A rebate, salaried individuals now pay zero tax on a gross annual income up to ₹12.75 Lakh.