Interactive Tax Calculator
Use our interactive calculator to get a personalized estimate of your tax liability. Adjust the sliders and inputs below to see how your income source and choice of tax regime affect your final tax payment for the Financial Year 2025-26.
Rental Income Details
Enter total deductions you can claim under the Old Regime.
New Regime
Final Tax Payable
₹0
Old Regime
Final Tax Payable
₹0
Income Source Deep Dive
Explore the specific tax rules, deductions, and TDS provisions for each type of income. This information, drawn from the source report, provides the context behind the calculator's results.
Taxation of Pension Income
Uncommuted pension (regular monthly payments) is fully taxable under the head 'Income from Salary'. It benefits from a standard deduction, which is a key factor in its tax calculation.
- New Regime Deduction: A flat standard deduction of ₹75,000 is available for FY 2025-26.
- Old Regime Deduction: A standard deduction of ₹50,000 is available, along with other deductions like Section 80C, 80D, and 80TTB (for senior citizens).
- TDS: The disbursing bank/employer deducts TDS based on your applicable slab rate. It's crucial to provide your PAN to avoid a higher TDS rate of 20%.
The enhanced standard deduction in the New Regime makes it particularly appealing for pensioners who don't have many other investments or deductions to claim.
Key Takeaways & Recommendations
Effective tax planning requires informed decisions. Here are the crucial points from the report to help you manage your finances.
Choose Your Regime Wisely
The New Regime is the default and favors simplicity with lower rates. It's great if you have few deductions. The Old Regime is better if you utilize deductions like 80C, 80D, and HRA heavily. Always compare before deciding.
PAN is Non-Negotiable
Always provide your PAN to banks and tenants. Failing to do so results in a higher TDS rate (usually 20%), leading to locked funds until you file your ITR and claim a refund.
File ITR, Even with TDS
TDS is just a pre-payment of tax. Filing your Income Tax Return (ITR) is mandatory to declare all income, claim all eligible deductions, and get a refund for any excess tax paid. The typical due date is July 31st.