India Income Tax Calculator — FY 2025-26
Compare Old vs New regime for India FY 2025-26 and find your optimal tax strategy.
Income Details
₹12.00L
₹12.00 Lakhs per annum
Deductions (Old Regime)
Max deduction: ₹1,50,000
Max: ₹25,000 (₹50,000 if senior citizen)
Max deduction: ₹50,000
Max deduction: ₹2,00,000
Enter your calculated HRA exemption amount
New Regime is better for you
You save ₹1,01,400 per year by choosing the New Regime.
₹1,01,400
Taxable Income
₹9,25,000
Standard Deduction
₹50,000
Total Deductions
₹2,75,000
Tax on Income
₹97,500
Surcharge
₹0
Health & Ed. Cess (4%)
₹3,900
Effective Tax Rate
8.45%
Monthly Tax Deduction
₹8,450
In-Hand Monthly
₹91,550
₹0
Taxable Income
₹11,25,000
Standard Deduction
₹75,000
Tax on Income
₹0
Surcharge
₹0
Health & Ed. Cess (4%)
₹0
Effective Tax Rate
0.00%
Monthly Tax Deduction
₹0
In-Hand Monthly
₹1,00,000
About Income Tax Planning Made Precise
Use India's most accurate FY 2025-26 tax calculator to compare both regimes, optimize your deductions, and make an informed decision before filing your returns.
How to Choose Between Old and New Tax Regime
The choice between the old and new tax regime depends primarily on the total value of deductions you can legitimately claim. The new regime is essentially a simplified system with lower headline rates but minimal deductions. The old regime rewards disciplined tax-saving investments through instruments like PPF, ELSS, NPS, and health insurance.
As a general rule: if your total deductions (80C + 80D + NPS + HRA + home loan interest) exceed approximately ₹3 – 3.5 lakh, the old regime typically results in lower tax. Below that threshold, the new regime — with its zero-tax rebate up to ₹12 lakh — is usually superior.
Key Deductions Available in Old Regime
The old regime allows you to significantly reduce your taxable income through multiple deduction channels:
- Section 80C (up to ₹1.5L):PPF, ELSS mutual funds, LIC premiums, NSC, 5-year FD, home loan principal, children's tuition fees, ULIP, Sukanya Samriddhi.
- Section 80D (up to ₹25,000 / ₹50,000): Health insurance premiums for self, spouse, children (₹25,000), and parents (additional ₹25,000 or ₹50,000 if senior citizens).
- Section 80CCD(1B) — NPS (up to ₹50,000): Additional NPS contribution over and above 80C limit — a powerful extra deduction for retirement planning.
- Section 24b — Home Loan Interest (up to ₹2L): Interest paid on home loan for self-occupied property.
- HRA Exemption (Section 10): Calculated based on salary, rent paid, and city of residence.
Budget 2025 Changes to the New Tax Regime
Union Budget 2025 brought significant improvements to the new tax regime, making it more attractive for the middle class:
- Zero tax up to ₹12 lakh: The Section 87A rebate limit was raised to ₹12 lakh (taxable income), effectively making income up to ₹12.75 lakh tax-free when including the ₹75,000 standard deduction.
- Revised slabs: New slabs include a 0% bracket up to ₹3L, 5% from ₹3–7L, 10% from ₹7–10L, 15% from ₹10–12L, 20% from ₹12–15L, and 30% above ₹15L.
- Enhanced standard deduction: Increased to ₹75,000 (from ₹50,000) in the new regime for salaried employees and pensioners.
- Surcharge cap: Maximum surcharge is capped at 25% in the new regime even for incomes above ₹5 crore.
Let's Talk Money
by Monika Halan
India's most practical personal finance guide covering tax-saving investments, insurance, and building wealth on any salary.
Get the BookQuestions & Answers
What is the difference between old and new tax regime?
The new tax regime has lower slab rates (0% up to ₹3L, full rebate up to ₹12L income) but allows very few deductions — only a ₹75,000 standard deduction. The old tax regime has higher slab rates but allows numerous deductions (Section 80C up to ₹1.5L, 80D health insurance, HRA, home loan interest, NPS), which can significantly reduce your taxable income. The best choice depends on how much you can claim in deductions.
Who should choose new vs old tax regime?
If your total eligible deductions (80C + 80D + NPS + HRA + home loan interest + others) exceed roughly ₹3–3.5 lakh, the old regime is likely better. If your deductions are minimal or you cannot invest in tax-saving instruments, the new regime generally results in lower tax — especially with the full rebate for incomes up to ₹12 lakh. This calculator shows you both outcomes instantly so you can make an informed decision.
What is the new tax regime rebate limit for FY 2025-26?
Under the new tax regime for FY 2025-26 (post-Budget 2025), if your taxable income (after the ₹75,000 standard deduction) is ₹12,00,000 or less, you pay zero income tax. The Section 87A rebate has been enhanced to ₹60,000 in the new regime, effectively making income up to ₹12 lakh tax-free. In the old regime, the 87A rebate is ₹12,500 and applies if taxable income is ₹5 lakh or less.
What is standard deduction in FY 2025-26?
In FY 2025-26, the standard deduction is ₹75,000 under the new tax regime (increased from ₹50,000 in Budget 2024) and ₹50,000 under the old tax regime. This deduction is automatically applied to salaried individuals and pensioners without requiring any proof of investment or expenditure.