Income Tax Calculator India FY 2025-26
Compare old vs new tax regime for FY 2025-26 (AY 2026-27). Includes Budget 2025 changes — ₹75k standard deduction, revised new regime slabs, and Section 87A zero-tax up to ₹12 lakh taxable income.
Your income details
New Tax Regime
Better for you| Slab | Rate | Taxable (₹) | Tax (₹) |
|---|---|---|---|
| ₹0 – ₹4,00,000 | 0% | 4,00,000 | 0 |
| ₹4,00,000 – ₹8,00,000 | 5% | 4,00,000 | 20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | 3,25,000 | 32,500 |
Old Tax Regime
| Slab | Rate | Taxable (₹) | Tax (₹) |
|---|---|---|---|
| ₹0 – ₹2,50,000 | 0% | 2,50,000 | 0 |
| ₹2,50,000 – ₹5,00,000 | 5% | 2,50,000 | 12,500 |
| ₹5,00,000 – ₹10,00,000 | 20% | 4,75,000 | 95,000 |
Key facts to know
- New regime default from FY23-24 — you must opt-in to old regime at time of ITR filing
- Standard deduction ₹75,000 for salaried in new regime (Budget 2025 — raised from ₹50k)
- Section 87A rebate: zero tax if taxable income ≤ ₹12 lakh in new regime (FY25-26)
- Old regime benefits: 80C (₹1.5L), 80D (health), HRA, LTA, NPS — max deductions ~₹3.5–4L
- Surcharge: 10% on tax if income > ₹50L; 15% above ₹1Cr; 25% above ₹2Cr (new regime cap at 25%)
- 4% Health & Education Cess applies on tax + surcharge for everyone
Watch-outs
- •New regime has no deductions except standard deduction — no 80C, no HRA, no LTA in new regime
- •Old regime is better only if your total deductions (80C + 80D + HRA + NPS) exceed ~₹3.75L
- •Once you switch to new regime, you CANNOT switch back to old regime mid-year (salaried employees)
- •This calculator covers only salary income — capital gains, rental income, business income treated separately
- •Surcharge and marginal relief for incomes just above ₹50L are not computed here — consult a CA
New Regime Slabs — FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹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% |
Old Regime Slabs — FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Income Tax FAQ
Which is better — new or old tax regime in FY25-26?
It depends entirely on your deduction amount. The new regime wins if your 80C + 80D + HRA + NPS + other deductions total less than the 'break-even deduction' point. For FY25-26: for income up to ₹12L, new regime wins for almost everyone because of the full 87A rebate (zero tax). Above ₹15L income, the old regime can be better if you have ₹3.5–4L+ in deductions. Use this calculator to check your specific situation.
What is the Section 87A rebate for FY25-26?
Under the new tax regime: if your taxable income (after ₹75,000 standard deduction) is ₹12,00,000 or less, you get a full tax rebate under Section 87A — your tax bill is zero. This is the 'effective ₹12 lakh zero-tax' benefit announced in Budget 2025. Under the old regime: the 87A rebate applies only if taxable income ≤ ₹5,00,000 (rebate up to ₹12,500).
Is the ₹75,000 standard deduction available in both regimes?
₹75,000 standard deduction applies only in the new regime for salaried employees and pensioners (FY25-26, raised in Budget 2025 from ₹50,000). In the old regime, the standard deduction is ₹50,000. Self-employed/business income does not get standard deduction in either regime.
What deductions are allowed in the new tax regime?
Very few. In the new regime, only these deductions are allowed: standard deduction (₹75,000 salaried), employer NPS contribution (Section 80CCD(2) — capped at 14% of basic for central govt employees, 10% for others), Section 80JJAA (new employment of persons with disability). All 80C, 80D, HRA, LTA, home loan interest (Section 24b), and all other deductions are NOT available in the new regime.
How is income from salary different from total income?
Gross salary (CTC components) → minus standard deduction → minus allowable exemptions (HRA in old regime, LTA, etc.) = 'Income from Salary.' This is then added to other income (bank interest, rental, capital gains) to get Gross Total Income. Deductions (80C, 80D, NPS in old regime) are subtracted from GTI to get Net Taxable Income. Tax slabs are applied to Net Taxable Income.
Do I need to file ITR if tax is zero?
Yes if your gross income exceeds the basic exemption limit (₹2.5L in old regime; ₹3L in new regime for FY25-26). Zero tax payable (due to 87A rebate or deductions) does not mean zero filing obligation. Most salaried employees with Form 16 should file ITR-1. Filing even with zero liability has benefits: it creates income proof for visa, loan, and other applications.