How does this Form 16 reconciliation work?

It takes the gross salary from Form 16, subtracts the standard deduction, applies the new-regime income tax slabs, applies the Section 87A rebate if eligible, adds the 4% health and education cess, then compares that liability with the TDS actually deducted to show any shortfall or excess.

Which tax regime does it use?

It uses the new tax regime for FY 2024-25 (AY 2025-26), which is now the default. The standard deduction is ₹75,000 and the slabs run from 5% up to 30%. The old regime with its many deductions is not modelled here.

What is the Section 87A rebate?

Under the new regime, if your taxable income is up to ₹7,00,000 the Section 87A rebate cancels your tax entirely, so the liability before cess becomes zero. Above that threshold the full slab tax applies and the rebate is not available.

Why is there a 4% cess added?

A 4% Health and Education Cess is levied on the income tax (after rebate) for all taxpayers. The tool adds it to give the total liability that should match the TDS on your Form 16, before any surcharge for very high incomes.

Is this a substitute for filing my ITR?

No. This is a salary-only reconciliation under the new regime. It excludes other income, surcharge, old-regime deductions, and advance tax. Use it to spot a mismatch, then verify with Form 26AS, the AIS and the income tax portal before filing.

India Form 16 Tax Reconciliation Calculator

The India Form 16 Tax Reconciliation Calculator checks the TDS deducted on your Form 16 Part B against the income tax you actually owe. It recomputes the liability under the new tax regime (FY 2024-25 / AY 2025-26) and flags any excess or shortfall before you file your ITR.

How it works

The tool applies the new regime, which is now the default:

Standard deduction: ₹75,000 on salary income.
Slabs on taxable income: 0% up to ₹3,00,000, 5% to ₹7,00,000, 10% to ₹10,00,000, 15% to ₹12,00,000, 20% to ₹15,00,000, 30% above.
Section 87A rebate: if taxable income is ≤ ₹7,00,000 the tax becomes zero.
Cess: 4% Health and Education Cess on the tax after rebate.

taxable = max(0, gross - 75,000)
slab tax = sum of slab rate x income in each slab
after rebate = (taxable <= 700,000) ? 0 : slab tax
total = after rebate x 1.04
difference = TDS deducted - total

A positive difference means excess TDS (refund due); a negative difference means a shortfall (balance payable with your return).

Tips and notes

This is salary-only under the new regime. It excludes other income, capital gains, surcharge and old-regime deductions like 80C or HRA.
The 87A rebate makes incomes up to ₹7,00,000 tax-free under the new regime, so small salaries show zero liability and any TDS becomes a refund.
For very high incomes a surcharge applies above ₹50,00,000 — not modelled here.
Always cross-check against Form 26AS and the AIS on the income tax portal before filing.