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Indian Tax Suite

Form 16 Breakdown Calculator — Calculations & Slabs for FY 2026-27

Enter your Form 16 figures -- gross salary, allowances, deductions, and TDS -- to see your total taxable income and tax payable under the new and old regimes side by side.

1. Salary & Deductions

Understanding Form 16, Part A and Part B

Form 16 is a TDS certificate issued by your employer every year, confirming that tax has been deducted from your salary and deposited with the government. It is mandatory for every employer to issue Form 16 if TDS was deducted from your pay.

Part A vs Part B

Part A contains your name, PAN, employer TAN, and quarter-wise TDS deposited. Part B is a detailed statement of your gross salary, all exemptions, deductions under Chapter VI-A (80C, 80D, etc.), and the final tax computation. Part B is the one you need to decode your tax liability.

Section 87A Rebate

If your taxable income does not exceed ₹5 Lakhs (old regime) or ₹12 Lakhs (new regime), you get a full rebate under Section 87A — your tax liability becomes zero regardless of which slab you fall into.

Old Regime vs New Regime

The old regime lets you claim HRA, 80C, 80D, and other deductions, but taxes you at higher base rates. The new regime offers lower flat slab rates but removes most deductions. Use this calculator to see which saves you more tax with your actual numbers.

Frequently Asked Questions (FAQ)

What is Form 16 Part A and Part B?

Part A is issued by your employer and contains details of TDS deposited with the government under your PAN. Part B is a detailed salary breakdown showing gross salary, all exemptions claimed, deductions under Chapter VIA, and final taxable income. Both parts together form the complete Form 16.

Can I use Form 16 to file my ITR directly?

Yes. Form 16 contains almost all the information you need to fill your ITR-1 or ITR-2. Use Part A for TDS details and Part B for salary, deductions, and tax computation. Cross-check with Form 26AS and AIS for any discrepancies before filing.

What is the Section 87A rebate and who gets it?

Section 87A gives you a full tax rebate if your taxable income is up to ₹5 Lakhs under the old regime or ₹12 Lakhs under the new regime. If eligible, your entire tax liability becomes zero — you pay no income tax at all even if you are in the 5% slab.

Why does my Form 16 show a different tax than what I calculated?

Common reasons include mid-year salary revisions, perquisites (car, ESOP), or deductions rejected by your employer due to missing proofs. Always compare your Form 26AS with the TDS shown in Form 16 Part A to find the mismatch. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

What happens if TDS deducted is more than my actual tax liability?

If excess TDS was cut, you will get a refund from the Income Tax Department after filing your ITR. The refund is directly credited to your bank account, usually within 30–60 days of successful ITR verification. This ensures full compliance with the latest regulations, allowing you to estimate values correctly and avoid common filing errors.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

What Does This Calculator Do?

This tool breaks down your Form 16 — the tax document your employer gives you every year — into simple numbers. It shows your gross salary, all the deductions you are allowed to claim, and exactly how much income tax you owe. Instead of staring at a confusing document, you get a clear line-by-line summary of where your money goes.

engine_type: compiled | format: inr

How to Use It

  1. Gross Salary (CTC): Type the total salary your employer pays you in a year before any deductions.
  2. Standard Deduction: The government gives every salaried employee ₹50,000 automatically — no proof needed.
  3. Section 80C Investments: Type the total of your PPF, ELSS, LIC, and EPF investments up to ₹1,50,000.
  4. HRA Exemption: Type the tax-free portion of your house rent allowance from your HRA calculator.
  5. Other Deductions: Type any 80D (health insurance), 80G (donations), or home loan interest amounts.
  6. Tax Regime: Select Old or New to compare which one saves you more tax.

The Logic Explained Simply

  • The Concept: Your Form 16 is a receipt that proves how much tax was cut from your pay. It has two parts — Part A shows the TDS your employer deposited, and Part B lists every deduction you claimed. This calculator reads those numbers and shows your final tax liability in plain steps so you never overpay.
  • The Formula:

Taxable Income = Gross Salary − Standard Deduction − HRA Exemption − 80C − Other Deductions

Tax Payable = Tax slab rate applied on Taxable Income + 4% Health & Education Cess

Real-World Calculation Breakdown

For example, gross annual salary is ₹12,00,000. Subtract standard deduction ₹50,000, HRA exemption ₹1,20,000, 80C investments ₹1,50,000. Taxable income = ₹12,00,000 − ₹3,20,000 = ₹8,80,000. Under the old regime, tax on ₹8,80,000 = ₹87,500. Add 4% cess = ₹3,500. Total tax = ₹91,000. TDS already deducted shows whether you get a refund or pay more.

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