Income Tax Calculator FY 2025-26
Compare New Regime vs Old Regime instantly. Find which saves more tax based on your salary, deductions and exemptions. Updated for Budget 2025.
ITR Filing Deadline: 31st July 2026 (AY 2026-27)
₹7L
Tax-Free (New Regime)
₹75K
Standard Deduction
₹1.5L
80C Limit
4%
Health & Education Cess
Income Details
New Tax Regime
Lower rates, limited deductions
DEFAULTOld Tax Regime
Higher rates, all deductions
OPT-INTotal CTC or Gross Salary before deductions
Interest, rental income, capital gains, etc.
Deductions (Old Regime Only)
Max ₹1.5L (EPF, PPF, ELSS, LIC)
Health insurance premium
Extra ₹50K beyond 80C
Section 24(b), max ₹2L
80E (Education loan), 80G (Donations), etc.
Tax Comparison
New Tax Regime
₹1,17,000
Old Tax Regime
₹78,000
BETTER CHOICE
By choosing the right regime, you save
₹39,000
Detailed Breakdown (Selected Regime)
Gross Income
₹15,00,000
Standard Deduction
- ₹75,000
HRA Exemption
- ₹1,56,000
Chapter VI-A Deductions
- ₹2,25,000
Taxable Income
₹9,44,000
Tax Before Cess
₹75,000
Health & Education Cess (4%)
₹3,000
Total Tax Payable
₹78,000
Income Tax Slabs FY 2025-26 (AY 2026-27)
New Tax Regime Slabs (Default)
| Income Range | Tax Rate | Tax on This Slab |
|---|---|---|
| Up to ₹3,00,000 | Nil | ₹0 |
| ₹3,00,001 - ₹7,00,000 | 5% | ₹20,000 |
| ₹7,00,001 - ₹10,00,000 | 10% | ₹30,000 |
| ₹10,00,001 - ₹12,00,000 | 15% | ₹30,000 |
| ₹12,00,001 - ₹15,00,000 | 20% | ₹60,000 |
| Above ₹15,00,000 | 30% | Varies |
Section 87A Rebate: If your taxable income is ₹7 lakh or less under New Regime, you get a full rebate and pay ZERO tax! Effective tax-free income = ₹7.75 lakh (after ₹75K standard deduction).
Old Tax Regime Slabs
| Income Range | Tax Rate | Tax on This Slab |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 - ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 - ₹10,00,000 | 20% | ₹1,00,000 |
| Above ₹10,00,000 | 30% | Varies |
When is Old Regime Better?
Old Regime beats New Regime when your total deductions (80C + 80D + HRA + NPS + Home Loan) exceed approximately ₹3.75 lakh for income above ₹15 lakh, or ₹2.5 lakh for income between ₹10-15 lakh.
New vs Old Regime: Quick Comparison
| Feature | New Regime | Old Regime |
|---|---|---|
| Tax Rates | Lower (5-30%) | Higher (5-30%) |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C | ❌ Not allowed | ✅ Up to ₹1.5 lakh |
| Section 80D (Health) | ❌ Not allowed | ✅ Up to ₹75,000 |
| HRA Exemption | ❌ Not allowed | ✅ Allowed |
| NPS 80CCD(1B) | ❌ Not allowed | ✅ Extra ₹50,000 |
| Home Loan Interest | ❌ Not allowed | ✅ Up to ₹2 lakh |
| LTA | ❌ Not allowed | ✅ Allowed |
| Section 87A Rebate | Up to ₹7 lakh income | Up to ₹5 lakh income |
⚠️ Important: New Tax Regime is the DEFAULT from FY 2023-24. If you want Old Regime, you must explicitly opt for it while filing ITR. Salaried employees must inform employer at the start of the year.
Deductions Available Under Section 80C (Old Regime)
- EPF/VPF: Employee's contribution to Provident Fund
- PPF: Public Provident Fund (tax-free returns)
- ELSS: Tax-saving mutual funds (3-year lock-in)
- NSC: National Savings Certificate
- Life Insurance Premium: LIC or term insurance
- Tuition Fees: Up to 2 children
- Home Loan Principal: Repayment of principal
- 5-Year FD: Tax-saving bank deposits
- Sukanya Samriddhi: Girl child savings scheme
Frequently Asked Questions
Is income up to ₹12 lakh tax-free in 2026?
Not exactly. Under New Regime, income up to ₹7 lakh gets full rebate under Section 87A. With ₹75,000 standard deduction, effective tax-free income is ₹7.75 lakh. For ₹12 lakh income, you pay approximately ₹52,000 tax under New Regime.
Can I switch between New and Old regime every year?
Salaried individuals can switch between regimes every year while filing ITR. However, if you have business income, you can switch from New to Old only once in a lifetime. Once you're in Old regime with business income, you cannot go back to New regime.
What is surcharge on income tax?
Surcharge applies on high incomes: 10% for ₹50L-1Cr, 15% for ₹1-2Cr, 25% for ₹2-5Cr, and 37% (max 25% in new regime) for above ₹5Cr. This is calculated on the tax amount, not the income. Plus 4% cess on tax+surcharge.
How do I calculate HRA exemption?
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) 50% of Basic+DA for metro cities OR 40% for non-metro, (3) Rent paid minus 10% of Basic+DA. You must actually pay rent and have receipts. HRA is only available in Old Regime.
What is the penalty for late ITR filing?
If you file after 31st July but before 31st December: ₹5,000 penalty (₹1,000 if income below ₹5 lakh). After 31st December: ₹10,000 penalty. You also lose the ability to carry forward certain losses and may pay interest on any tax due.