Estimate your income tax refund when filing ITR in India. Enter total income, TDS from Form 26AS, advance tax paid, and compute your net liability or refund.
Estimate your ITR tax refund or additional tax due for FY 2025-26.
Estimated tax refund
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Tax liability
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Total prepaid tax
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Taxable income
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Your breakdown
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How the refund estimate is computed
The calculator applies simplified FY 2025-26 new regime tax slabs: nil up to Rs 3 lakh, 5 percent from Rs 3 to Rs 7 lakh, 10 percent from Rs 7 to Rs 10 lakh, 15 percent from Rs 10 to Rs 12 lakh, 20 percent from Rs 12 to Rs 15 lakh, and 30 percent above Rs 15 lakh, plus a 4 percent health and education cess. The Section 87A rebate of up to Rs 25,000 is applied if total income is Rs 7 lakh or below. Under the old regime, the standard deduction of Rs 50,000 and the declared deductions are subtracted before applying old regime slabs. The result is compared to TDS plus advance tax to find the refund or extra tax due.
Sources of TDS visible in Form 26AS
Form 26AS and Annual Information Statement (AIS) consolidate all TDS deducted on your behalf. Sources include: TDS on salary under Section 192 (by employer), TDS on FD interest under Section 194A (by banks), TDS on dividends under Section 194 (by companies), TDS on freelance or professional income under Section 194J, TDS on rent under Section 194I, and TDS on sale of property under Section 194IA. Check all these entries to ensure the prepaid TDS amount is complete before filing. Missing a TDS entry means you may over-claim or under-claim your refund.
Important caveats about this estimate
This calculator uses simplified slabs and may not account for surcharge on incomes above Rs 50 lakh, marginal relief at slab boundaries, special rates for capital gains income, clubbing of spouse or minor child income, or deemed income from house property. For a precise liability calculation use a full-feature income tax calculator or consult a chartered accountant. This tool is best used as a quick sanity check on whether your TDS broadly matches your expected liability, not as a definitive refund claim amount.
Frequently asked questions
How is the income tax refund calculated in India?
Your tax refund equals total prepaid taxes minus actual tax liability. Prepaid taxes include TDS deducted by your employer or banks (visible in Form 26AS and AIS), advance tax paid in four installments, and self-assessment tax paid. Your actual tax liability depends on your total income for the year and applicable deductions. If you overpaid through TDS or advance tax, the excess is refundable. File your ITR accurately by the due date (typically 31 July for individuals) to claim the refund. The Income Tax Department processes most refunds within 20 to 45 days.
Why might my TDS be higher than my actual tax liability?
TDS is often over-deducted in a few common situations: your employer used last year salary structure and did not account for mid-year changes, you have deductions like HRA or 80C that were not declared to your employer, you are in the nil or 5 percent slab but banks deducted TDS at 10 percent on FD interest, you changed jobs and both employers deducted TDS as if they were your only employer, or you had a salary hike or decrease mid-year. All these result in excess TDS, which is fully refundable on correct ITR filing.
How long does an ITR refund take in India?
The Income Tax Department processes electronically filed and e-verified ITRs significantly faster than paper returns. For ITRs filed before July with no discrepancies, refunds typically arrive within 15 to 45 days of e-verification. Complex returns or cases selected for scrutiny may take longer. The refund is credited directly to the bank account linked with your PAN via NEFT. You can track refund status on the ITR e-filing portal or NSDL website using your PAN. If the refund is delayed beyond 90 days from the date of issue, you are entitled to refund interest at 6 percent per annum under Section 244A.
What is Section 87A rebate and who is eligible?
Section 87A provides a tax rebate of up to Rs 12,500 for individuals under the old regime with total income up to Rs 5 lakh, and up to Rs 25,000 for individuals under the new regime with total income up to Rs 7 lakh (Finance Act 2023). This means that under the new regime, if your total income is Rs 7 lakh or below, your income tax liability after applying the rebate is nil. The rebate is applied on the computed tax before adding surcharge and health and education cess, so it applies to the base tax only.