Income Tax Calculator

⚠️ Not financial advice. Results are illustrative only and should not be used as the basis for any investment, tax, or financial decision. Consult a qualified financial adviser or chartered accountant before acting on any figure shown.

Income Tax in India — FY 2025-26

The Union Budget 2025-26 brought significant changes to the New Tax Regime, making it more attractive for most taxpayers. The nil-tax threshold effectively moved to ₹12 lakh under the New Regime, with a revised standard deduction of ₹75,000 for salaried individuals.

New Regime slabs (FY 2025-26)

₹0 – ₹4,00,000: Nil
₹4,00,001 – ₹8,00,000: 5%
₹8,00,001 – ₹12,00,000: 10%
₹12,00,001 – ₹16,00,000: 15%
₹16,00,001 – ₹20,00,000: 20%
₹20,00,001 – ₹24,00,000: 25%
Above ₹24,00,000: 30%

When to choose the Old Regime

The Old Regime can still save tax if you have significant deductions: Section 80C investments (₹1.5L), HRA exemption, home loan interest (₹2L deduction), NPS contributions (Section 80CCD), and other allowances. If your total deductions exceed roughly ₹3–4 lakh, the Old Regime may result in lower tax.

Disclaimer

This calculator is for informational purposes only. It uses standard deductions and published slab rates. It does not account for all possible exemptions, investments, or individual circumstances. Consult a chartered accountant for exact tax planning.

How to decide between New and Old Regime

The simplest way to decide: calculate your total deductions under the Old Regime — Section 80C (up to ₹1.5L), HRA exemption, home loan interest (Section 24b, up to ₹2L for self-occupied), Section 80D health insurance premium, NPS contribution (Section 80CCD), and other allowances. If your deductions add up to more than roughly ₹3–4 lakh, the Old Regime likely gives lower tax. Below that threshold, the New Regime is usually better. Use this calculator to run both scenarios with your actual income and deduction numbers.

Who uses this income tax calculator

Salaried employees compare their tax liability under both regimes in January–March before declaring the preferred regime to their employer for TDS purposes. Freelancers and self-employed individuals use it to estimate advance tax installments due in June, September, December, and March. CAs and tax consultants use it for quick client consultations during the tax-saving season. New graduates starting their first job use it to understand how much of their CTC will be taken as tax and whether 80C investments make sense for their income level.

New Regime deductions — what is still allowed

While the New Regime removes most Chapter VI-A deductions, certain benefits remain. The ₹75,000 standard deduction is available for salaried employees and pensioners. Employer NPS contribution under Section 80CCD(2) is still deductible. Interest on home loans for let-out properties (not self-occupied) can be claimed. Family pension standard deduction of ₹25,000 is available. Leave encashment exemption applies. For most salaried employees without a home loan or large 80C investments, the New Regime's combination of lower rates and the ₹12 lakh effective zero-tax threshold (via Section 87A rebate) makes it the default choice from FY 2025-26.

Frequently asked questions

What is the New Tax Regime for FY 2025-26?

The New Regime introduced in Budget 2025 has 7 slabs: 0% up to ₹4L, 5% from ₹4–8L, 10% from ₹8–12L, 15% from ₹12–16L, 20% from ₹16–20L, 25% from ₹20–24L, and 30% above ₹24L. A ₹75,000 standard deduction applies for salaried individuals. Effective nil tax for income up to ₹12L via Section 87A rebate.

Which regime is better — New or Old?

It depends on your deductions. The Old Regime benefits those with high deductions (80C, HRA, home loan interest, NPS). The New Regime is simpler and better for those with few deductions. This calculator shows both and highlights the saving.

What is the Section 87A rebate?

Under the New Regime for FY 2025-26, if your taxable income is ₹12 lakh or less, you get a full rebate — your tax liability is zero. Under the Old Regime, the rebate is ₹12,500 for income up to ₹5 lakh.

What is the standard deduction for FY 2025-26?

Salaried employees and pensioners get a standard deduction of ₹75,000 under the New Regime and ₹50,000 under the Old Regime. This is automatically subtracted from gross income before applying tax slabs.

Does this calculator include surcharge and cess?

Yes. Surcharge applies for incomes above ₹50 lakh (10%), ₹1 crore (15%), ₹2 crore (25%). Health and Education Cess of 4% is applied on tax plus surcharge.