New Tax Regime income tax calculator
Enter an annual salary to see the tax for the year and the monthly TDS an employer would deduct.
Salary income for the year, before deductions.
Income tax for the year
₹97,500
- Standard deduction
- ₹75,000
- Taxable income
- ₹14,25,000
- Tax on slabs
- ₹93,750
- Section 87A rebate
- ₹0
- Health and education cess (4%)
- ₹3,750
- Monthly TDS (÷ 12)
- ₹8,125
How this is worked out
- FY 2025-26 published rates: ₹75,000 standard deduction; slabs of 0% to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% in ₹4 lakh steps, and 30% above ₹24 lakh.
- Section 87A rebate of up to ₹60,000 when taxable income is ₹12 lakh or less. Marginal relief just above ₹12 lakh is not applied, so tax there may be overstated.
- 4% health and education cess. No surcharge, so results above ₹50 lakh are understated.
- Salary income only, New Tax Regime only. Monthly TDS is the annual tax divided by 12, as PeopleOS payroll does today.
An estimate for planning, not tax or legal advice.
Common questions
Is salary up to ₹12.75 lakh tax-free?
Under these rates, yes for salary income: ₹12,75,000 less the ₹75,000 standard deduction leaves ₹12 lakh of taxable income, and the Section 87A rebate cancels the tax on it.
Does this cover the old regime?
No. It covers the New Tax Regime only, which is also the only regime PeopleOS payroll calculates TDS for today.
How does PeopleOS handle TDS?
PeopleOS applies the rates your workspace is configured with to every employee in each payroll run. Free for up to 10 employees.