Income Tax Calculator FY 2025-26
Calculate your income tax liability for FY 2025-26 (AY 2026-27) under old and new tax regimes.
Income & Deductions
Total income from all sources
Note: This calculator provides an estimate. Consult a CA for accurate tax calculation.
Tax Payable (New Regime)
₹0
Effective tax rate: 0.00%
Tax Breakdown
Regime Comparison
Old Regime Tax
₹0
New Regime Tax
₹0
Both regimes have same tax
Understanding Tax Regimes
Old Tax Regime
With deductions and exemptions
- ✓ 80C deductions (₹1.5L)
- ✓ 80D health insurance
- ✓ HRA exemption
- ✓ Home loan interest
- ✗ Higher tax slabs
New Tax Regime
Lower rates, no deductions
- ✓ Lower tax rates
- ✓ Standard deduction (₹50K)
- ✓ Simpler calculation
- ✗ No 80C deductions
- ✗ No other exemptions
How to Use the Income Tax Calculator
Select your preferred tax regime (new or old), enter your annual gross income, and — if using the old regime — enter your deductions under 80C (PPF, ELSS, EPF), 80D (health insurance), and other eligible deductions. The calculator instantly shows your tax payable, effective tax rate, and take-home salary for both regimes side by side.
For example: a ₹12 lakh annual income earner under the new regime pays approximately ₹93,600 in tax (effective rate ~7.8%), while under the old regime with ₹1.75 lakh in deductions, the tax is approximately ₹1,09,200. In this case, the new regime saves ₹15,600 per year.
Old Regime vs New Regime: Key Differences
The old tax regime allows over 70 deductions and exemptions including 80C investments (up to ₹1.5 lakh), 80D health insurance premium, HRA exemption, home loan interest deduction under Section 24, and LTA. These deductions reduce your taxable income but require documentation and tax planning.
The new tax regime, introduced in 2020 and made the default from FY 2023-24 onwards, offers lower slab rates but allows only the standard deduction of ₹50,000 for salaried individuals. It is simpler and generally better for those who do not have large deductions or are just starting their careers.
Frequently Asked Questions
Which tax regime is better for a ₹10 lakh salary?
With maximum 80C (₹1.5L), 80D (₹25K), and standard deduction, old regime tax ≈ ₹75,400 vs new regime ≈ ₹54,600. New regime wins here. But if you have HRA + home loan interest, recalculate — old regime may then be better.
What is the tax-free income limit in FY 2025-26?
New regime: up to ₹7 lakh is tax-free (Section 87A rebate of ₹25,000). Old regime: up to ₹5 lakh is tax-free. Plus ₹50,000 standard deduction for salaried individuals in both regimes.
What are the new regime tax slabs for FY 2025-26?
Up to ₹3L: Nil; ₹3-6L: 5%; ₹6-9L: 10%; ₹9-12L: 15%; ₹12-15L: 20%; Above ₹15L: 30%. Add 4% cess on all computed tax.
Is the new tax regime better than the old?
New regime is better for those with fewer deductions, income below ₹7L (zero tax), or high earners above ₹15L. Old regime suits those maximising HRA + 80C + home loan interest deductions.
Can I switch between old and new tax regime every year?
Salaried individuals can switch between regimes every financial year when filing their ITR. However, business owners who have opted out of the new regime can only switch back once in their lifetime. Declare your regime preference to your employer at the start of each financial year for correct TDS deduction.