Union Budget 2026: How to Calculate Income Tax Online on E-Filing Portal? Step-by-Step Guide

As the income tax filing season approaches, many taxpayers, especially salaried individuals and first-time filers, look for simple ways to estimate their tax liability. Understanding how much tax you owe in advance helps in better financial planning and avoids last-minute surprises while filing returns.

To make tax calculation easier, the Income Tax Department of India offers an official online tax calculator on its e-filing portal. This free tool allows individuals to calculate income tax under both the old and new tax regimes based on their income, deductions, and personal details.

Budget 2026: How to Calculate Income Tax Online? Step-by-Step Guide

Individuals can calculate their income tax using the Tax Calculator on the Income Tax Department's official website. Here's a step-by-step guide:

• Step 1: Go to the e-filing home page.
• Step 2: You need to select Quick Links and choose the tax calculator.
• Step 3: Click the link to go to the Income and Tax Calculator page. There are two options: Basic Calculator and Advanced Calculator. The Basic Calculator tab is selected by default.
• Step 4: In the Basic Calculator tab, you need to enter the details like the Assessment Year, taxpayer category, age, residential status, total annual income and total deductions. The tax calculation will appear in the Tax Summary section, according to the details you entered.
• Step 5: In the Advanced Calculator tab, you need to enter more details, including Preferred tax regime, AY, taxpayer category, age, residential status, due date and actual date of submission of return.

Union Budget 2026: What is the Income Tax Calculator on the E-Filing Portal?

The income tax calculator is an online tool available on the official Income Tax Department website. It helps individuals estimate their tax payable for a selected assessment year without logging in.

The calculator is designed for salaried employees, pensioners, and individual taxpayers who want a quick and accurate tax estimate before filing their Income Tax Return (ITR).

Budget 2026: Basic vs Advanced Tax Calculator - Which One Should You Use?

Many taxpayers wonder which calculator is suitable for them. The Basic Calculator works best for individuals with a simple income structure, such as salaried employees with limited deductions. It provides a quick tax estimate based on basic income and deduction details.

The Advanced Calculator suits taxpayers with multiple income sources or those who want to compare the old and new tax regimes. It also factors in late filing dates and applicable interest, offering a more detailed tax computation.

Union Budget 2026: How the Income Tax Calculator Helps Salaried Employees?

For salaried individuals, the tax calculator acts as a planning tool. It helps estimate monthly tax outgo, assess whether additional tax-saving investments are required, and understand the impact of deductions like the standard deduction and other eligible exemptions.

Using the calculator before filing returns also reduces errors and improves accuracy in tax filing.

Budget 2026: Why You Should Calculate Income Tax Before Filing ITR?

Calculating income tax in advance allows taxpayers to:

• Avoid underpayment or excess tax payment
• Plan investments effectively
• Choose between the old and new tax regimes wisely
• Reduce the risk of notices due to calculation errors
• It also helps first-time filers gain confidence before submitting their returns.

Union Budget 2026: Who Can Use the Income Tax Calculator?

The online tax calculator is useful for:

• Salaried employees
• Pensioners
• Self-employed individuals with simple income structures
• First-time income tax filers

Anyone who wants a clear idea of their tax liability can use this tool without professional assistance.

What does it Mean for Taxpayers?

The Income Tax Department’s online tax calculator simplifies income tax estimation for individuals across income groups. With easy inputs and instant results, it removes the complexity around tax calculations and helps taxpayers stay prepared during the filing season.

Using this tool early can save time, reduce stress, and ensure accurate compliance with income tax rules.