Indian Tax Calculator FY 2025-26

A comprehensive calculator to compute income tax for India based on both old and new tax regimes for Financial Year 2025-26, reflecting the latest changes from Budget 2025.

Features

• Calculate tax based on either monthly or yearly salary inputs
• Support for both old and new tax regimes with accurate 2025-26 tax slabs
• Detailed breakdown of tax calculation
• Monthly mode includes options for:
  • Consolidated additional incentives/allowances (performance pay, special allowance, etc.)
  • One-time bonus/variable pay (not multiplied by 12)
  • Consolidated additional deductions (Professional Tax, Labor Welfare Fund, etc.)
  • Detailed calculations for bonus month including in-hand amount
• Yearly mode provides annual salary calculation
• Considers standard deduction, PF, LTA, HRA, and other components
• Proper handling of EPF contributions in new tax regime
• Additional tax-saving deductions for old regime (80C, 80D, 80E)
• Computes in-hand salary after all deductions
• Easy-to-use command-line interface with helpful notes

Installation

You can install the package directly from PyPI:

pip install tax_calculator_by_yousaf

Alternatively, you can install directly from GitHub:

pip install git+https://github.com/yousafkhamza/tax_calculator_by_yousaf.git

Usage

After installation, you can run the calculator directly from the command line:

tax-calculator

Or import it in your Python code:

from tax_calculator import calculate_tax_2025_26

calculate_tax_2025_26()

Tax Calculation Details

New Regime (Default for FY 2025-26)

• Standard Deduction: ₹75,000
• Tax Slabs:
  • Up to ₹4,00,000: No tax
  • ₹4,00,001 to ₹8,00,000: 5%
  • ₹8,00,001 to ₹12,00,000: 10%
  • ₹12,00,001 to ₹16,00,000: 15%
  • ₹16,00,001 to ₹20,00,000: 20%
  • ₹20,00,001 to ₹24,00,000: 25%
  • Above ₹24,00,000: 30%
• Section 87A rebate up to ₹60,000 for income up to ₹12,00,000
  • Effective zero tax for income up to ₹12,00,000
  • For salaried individuals, effective zero tax for income up to ₹12,75,000 (due to standard deduction)
• Important: EPF contributions are NOT tax-exempt under the new regime

Old Regime

• Standard Deduction: ₹50,000
• Tax Slabs:
  • Up to ₹2,50,000: No tax
  • ₹2,50,001 to ₹5,00,000: 5%
  • ₹5,00,001 to ₹10,00,000: 20%
  • Above ₹10,00,000: 30%
• Section 87A rebate applicable for income up to ₹5,00,000 (₹12,500 rebate)
• Additional deductions available (80C, 80D, 80E, etc.)
• EPF contributions are tax-exempt

Surcharge Details

• 10% for income between ₹50 lakhs and ₹1 crore
• 15% for income between ₹1 crore and ₹2 crore
• 25% for income between ₹2 crore and ₹5 crore
• 37% for income above ₹5 crore (25% under new regime)
• Health and Education Cess of 4% applicable on all tax amounts

EPF Treatment in New Tax Regime

• Employer's EPF contribution (up to 12% of salary) remains tax-exempt
• Combined employer contributions to EPF, NPS, and superannuation funds are tax-exempt up to ₹7.5 lakh
• Employee's EPF contribution is NOT eligible for tax deduction under the new regime
• Interest earned on EPF up to ₹2.5 lakh contribution remains tax-exempt

When to Choose Which Regime?

• New Regime: Beneficial for individuals with fewer tax-saving investments or deductions, especially those with income above ₹15 lakhs
• Old Regime: May be more beneficial for individuals with significant tax-saving investments and deductions

Command-Line Interface

The calculator guides you through a simple interactive process:

Monthly Input Mode

1. Choose monthly input mode
2. Enter monthly salary components:
   • Basic Salary
   • HRA
   • Special Allowance
   • LTA
   • PF Contribution
   • Additional Incentives/Allowances
   • Additional Deductions (PT, LWF, etc.)
   • One-time Bonus/Variable Pay (not multiplied by 12)
3. Select tax regime
4. For old regime, enter additional deductions
5. View calculated monthly tax and in-hand salary
6. If bonus was entered, see detailed bonus month calculation including:
   • Gross salary for bonus month
   • Additional tax due to bonus
   • Total tax for bonus month
   • In-hand salary for bonus month
   • Updated annual total with bonus

Yearly Input Mode

1. Choose yearly input mode
2. Enter yearly salary components:
   • Basic Salary
   • HRA
   • Special Allowance
   • LTA
   • PF Contribution
3. Select tax regime
4. For old regime, enter additional deductions
5. View calculated annual tax and in-hand salary
6. See note about calculating bonus in monthly mode

Requirements

• Python 3.6 or higher

License

This project is licensed under the MIT License - see the LICENSE file for details.

Author

Yousaf Khamza