Income Tax Refund Calculator India — FY 2025-26
Estimate your income tax refund by comparing TDS deducted against your actual tax liability under the new or old regime. Calculate interest on refund under Section 244A, and compare which regime gives you a higher refund. Updated for FY 2025-26 with Budget 2025 slabs.
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How to Use This Calculator
Refund Estimator tab
Enter your gross annual income, TDS deducted by your employer or deductor, and select your tax regime (new or old). If you chose the old regime, expand "More options" to add your deductions under Section 80C, 80D, HRA, home loan interest, and NPS. The calculator computes your actual tax liability and compares it with TDS paid to show your refund or balance due.
Interest on Refund tab
Enter the expected refund amount, your ITR filing date, and expected processing date. The calculator computes interest at 6% per annum (0.5% per month) under Section 244A of the Income Tax Act. This helps you estimate the total amount you will receive including interest.
Old vs New Refund tab
Enter the same income and TDS to see a side-by-side comparison of your refund under both tax regimes. Add your old-regime deductions to see which regime gives you a higher refund. This is especially useful when deciding which regime to opt for while filing your ITR.
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The Formula
Your income tax refund is the difference between taxes already paid and your actual tax liability:
Actual Tax Liability:
1. Gross Income − Deductions = Taxable Income
2. Apply slab rates to get tax on income
3. Subtract rebate u/s 87A (if eligible)
4. Add surcharge (if income > &rupee;50 lakh)
5. Add 4% Health & Education Cess
Interest on Refund (Section 244A):
Interest = Refund Amount × 6% × (Months / 12)
Calculated from 1 April of AY or filing date, whichever is later
Part of a month counts as a full month
If TDS + Advance Tax exceeds your actual liability, you are entitled to a refund. If it is less, you owe additional tax (self-assessment tax) which should be paid before filing your ITR.
Example
Priya — Salaried professional, &rupee;10 lakh income, New Regime
Priya earns &rupee;10,00,000 annual salary. Her employer deducted &rupee;85,000 as TDS during FY 2025-26. She files under the new tax regime.
Step 1: Compute taxable income
Step 2: Calculate tax (New Regime FY 2025-26)
Step 3: Calculate refund
Step 4: Interest under Section 244A
Priya will receive approximately &rupee;51,968 as refund (including &rupee;768 interest). The interest of &rupee;768 is taxable in the year she receives it.