Income Tax in India

* Figures marked with an asterisk are yet to be confirmed by a registered Chartered Accountant of India.

Tax year 2026-27

Learn about income tax

These pages explain Indian income tax in plain language, one idea at a time. There is no legal jargon we don't explain first, and every worked example uses a made-up person so you can follow the numbers.

When you are ready to work out your own tax, use the calculator. It runs entirely on your phone or computer — we never see or store what you type into it.

Start: The basics →Open the map

Pages in this section

  1. The basicsWhat tax is, in plain wordsWhat income tax is, what a 'tax year' means, and who this site is for.
  2. Gross and net payWhy less reaches your bankWhat gross and net pay mean for the year, why there's a gap between them, and where it goes.
  3. Your salary slip and take-home payWhat each line meansWhat each line on a payslip means, where the money goes, and a live tool to try your own.
  4. New regime vs old regimeHow the two compareThe two ways to work out your tax, and how their slabs compare.
  5. How your tax is calculatedSlabs, one step at a timeThe steps from your income to the final amount you owe, in order.
  6. Deductions under the old regimeWhat you may subtractCommon ways to reduce your taxable income, and their limits.
  7. Senior citizensExtra room for older taxpayersAge groups, and the extra room the law gives to older taxpayers.

Map of ideas

How it all connects

Income tax is a handful of ideas that lean on each other. Each dot is one idea; a line joins two that are related. Tap a dot to read what it means and jump to its lesson, or use the list to go straight to a lesson. You can drag the dots around. On a computer, hold Ctrl (or ⌘) and scroll to zoom.

Money you earn

  • Gross pay. Everything your employer agrees to pay you for the year, before anything is taken out. Open the lesson: Gross pay →Related: Net pay, CTC, Salary slip, Standard deduction
  • Net pay. What is left after deductions: the money that actually reaches your bank account. Open the lesson: Net pay →Related: Gross pay, Salary slip, TDS, Provident fund (PF), Professional tax
  • CTC. Cost to company: the full amount your employer spends on you, including their own PF contribution, which is not paid to you as salary. Open the lesson: CTC →Related: Gross pay, Provident fund (PF)
  • Salary slip. The monthly statement that lists what you earned and each amount taken out, ending with what reaches your bank. Open the lesson: Salary slip →Related: Gross pay, Net pay, My slip, TDS, Provident fund (PF), Professional tax
  • My slip. A tool on this site that reads your own salary slip on your device, so you can see what each line means. Nothing leaves your phone or computer. Open the tool: My slip →Related: Salary slip

Money taken out

  • TDS. Tax deducted at source: your employer estimates your income tax for the year and deducts a share from each month's pay, sending it straight to the government. Open the lesson: TDS →Related: Salary slip, Income tax, Net pay
  • Provident fund (PF). Your own saving for retirement. A slice of your pay is set aside every month, but it stays your money, held in your PF account. Open the lesson: Provident fund (PF) →Related: Salary slip, CTC, Net pay, Deductions
  • Professional tax. A small tax some States charge on people who work. Not every State charges it, and each State sets its own amount. Open the lesson: Professional tax →Related: Salary slip, Net pay

How tax is worked out

  • Income tax. Money you pay to the Government of India out of what you earn in a year. The government works out how much you owe using a set of rules. Open the lesson: Income tax →Related: Tax year, Total income, Slabs, Calculator, TDS
  • Tax year. The year in which you earn the income. It replaces the old law's "previous year" and "assessment year". Open the lesson: Tax year →Related: Income tax
  • Deductions. Amounts you can subtract from your income before tax is worked out on it. Most are allowed only under the old regime. Open the lesson: Deductions →Related: Provident fund (PF), Total income, Old regime, Senior citizens
  • Standard deduction. A fixed amount every salaried person can subtract from their salary, with no bills or proof needed. Open the lesson: Standard deduction →Related: Gross pay, Total income
  • Total income. Sometimes called taxable income. It is what is left after the law lets you subtract certain amounts. Tax is charged on this smaller number. Open the lesson: Total income →Related: Income tax, Standard deduction, Deductions, Slabs
  • Slabs. Rows of income with a rate for each. Each rate applies only to the slice of income inside that row, not your whole income. Open the lesson: Slabs →Related: Income tax, Total income, New regime, Old regime, Rebate, Surcharge
  • New regime. The default way to work out tax. It has lower rates in most slabs, but does not let you claim most deductions. Open the lesson: New regime →Related: Slabs, Old regime, Calculator
  • Old regime. The way that existed before. You have to choose it when you file your return. It lets you subtract several kinds of payment from your income first. Open the lesson: Old regime →Related: Deductions, Slabs, New regime, Senior citizens, Calculator
  • Rebate. A reduction in your tax. If your total income is low enough, the rebate can bring the tax down to zero. Open the lesson: Rebate →Related: Slabs, Marginal relief
  • Marginal relief. Stops you paying more extra tax than the extra income you earned just above a limit. Open the lesson: Marginal relief →Related: Rebate
  • Surcharge. An extra percentage added to your tax when your income is very high. Open the lesson: Surcharge →Related: Slabs, Cess
  • Cess. A small extra percentage added on top of your tax, after everything else is worked out. Open the lesson: Cess →Related: Surcharge
  • Calculator. Works out your tax for the year following the same steps as the lessons. It runs on your device, and we never see what you type. Open the tool: Calculator →Related: Income tax, New regime, Old regime

Who you are

  • Senior citizens. Under the old regime, older taxpayers get a bigger tax-free amount and bigger limits on a couple of deductions. The new regime has the same slabs at every age. Open the lesson: Senior citizens →Related: Deductions, Old regime

This section covers tax year 2026-27. For the official rules, always check incometax.gov.in.