Frequently Asked Questions (FAQs)
1. What is the income tax rebate under Section 87A for FY 2025–26?
Section 87A provides a tax rebate to eligible resident individuals if their taxable income falls within the prescribed limit under the applicable tax regime. The rebate reduces your final tax liability, and in many cases, it can make your tax zero.
2. What is marginal relief in income tax?
Marginal relief ensures that if your income slightly exceeds the rebate threshold, the extra tax payable does not exceed the extra income earned. It prevents a sudden sharp increase in tax due to crossing the rebate limit.
3. Does this Excel calculator include Section 87A rebate?
Yes. This Income Tax Calculator for FY 2025–26 automatically applies Section 87A rebate wherever applicable based on your taxable income.
4. Does this sheet calculate marginal relief automatically?
Yes. The Excel sheet includes built-in logic for marginal relief. It ensures:
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Relief is applied correctly
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Tax does not increase disproportionately
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Tax never becomes negative
5. Is this calculator applicable for the new tax regime?
Yes. This calculator is structured according to the applicable slab rates for FY 2025–26 and includes rebate and marginal relief logic as per the current framework.
6. Is this income tax calculator free to use?
Yes. You can download the Excel sheet for free and use it for personal tax estimation and planning purposes.
7. Can salaried and business individuals both use this calculator?
Yes. Anyone who knows their taxable income can use this sheet to estimate their tax liability.
8. Is this calculator officially from the Income Tax Department?
No. This is an independent Excel-based calculator created for educational and estimation purposes. Final tax liability should always be verified on the official government portal or with a tax professional.
Understanding income tax has become increasingly confusing, especially with changes in rebate limits, new regime benefits, and marginal relief calculations. Many taxpayers either overestimate their tax or rely on inaccurate online calculators.
To simplify things, I have created a practical and logically structured Excel sheet for FY 2025–26 that includes:
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✅ Automatic tax calculation
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✅ Section 87A rebate
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✅ Proper marginal relief adjustment
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✅ Built-in logic to avoid negative tax results
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✅ Clean and transparent formulas
This sheet is designed for clarity, not complexity.
Why This Calculator Is Useful
Most online calculators:
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Do not clearly show how rebate is applied
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Ignore marginal relief logic
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Hide formulas
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Confuse users with unnecessary inputs
This Excel file allows you to:
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See the calculation logic directly
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Understand how rebate reduces tax
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Verify marginal relief step-by-step
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Adjust numbers according to your situation
It is especially helpful for:
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Salaried individuals
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Small business owners
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Teachers and professionals
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Anyone wanting clarity before filing
Who Should Use This?
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Individuals calculating tax before filing
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People planning investments
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Professionals advising others
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Students learning practical taxation
Even if you are not a tax expert, you can use it comfortably.
Important Note
This Excel sheet is meant for educational and estimation purposes only.
Final tax liability should always be verified with official government portals or a qualified tax consultant.
Tax laws can change, and individual cases may differ.
Download the Excel Sheet
You can download the Income Tax Calculator for FY 2025–26 from the link below:
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