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Financial Year
Regime
FREE INCOME TAX CALCULATOR

India Income Tax Calculator
FY 2025-26

New regime vs old regime comparison, slab-wise breakdown, effective tax rate, and in-hand salary — updated for Budget 2025.

Income Details

Gross Annual Income
₹1L ₹50L ₹1Cr
Employment Type

New Regime — Deductions

Under the new regime, very few deductions are allowed. Standard deduction is automatically applied.
Standard DeductionAuto-applied for salaried employees
₹75,000
NPS Employer Contribution 80CCD(2)Employer's NPS contribution (up to 10% of basic)
Slab-wise Tax Breakdown
Income Slab Rate Taxable in Slab Tax
Component New Regime Old Regime
Total Tax Payable
₹0
FY 2025-26 · New Regime
₹0
Tax on Income
₹0
Surcharge
₹0
4% Cess
0%
Effective Rate
₹0
Monthly Tax
₹0
In-hand Annual
₹0
In-hand Monthly

Key Info — FY 2025-26

New Regime Slabs ₹0–4L: 0%  |  ₹4–8L: 5%
₹8–12L: 10%  |  ₹12–16L: 15%
₹16–20L: 20%  |  ₹20–24L: 25%
Above ₹24L: 30%
Rebate 87A: Full rebate ≤ ₹12L

New Regime vs Old Regime — Which is Better?

The Indian government offers two tax regimes: the New Tax Regime (introduced in FY 2020-21 and made the default from FY 2023-24) and the Old Tax Regime. The new regime offers lower slab rates but removes most deductions. The old regime has higher rates but lets you reduce taxable income via 80C, HRA, home loan interest, and other deductions.

As a general thumb rule: if your total deductions exceed ₹3.75 lakh (for those in the ₹15L+ bracket), the old regime may save more tax. For most salaried employees with only standard deduction and basic 80C investments, the new regime is typically better for incomes up to ₹12 lakh (which gets full rebate under 87A).

New Regime Pros

Lower tax rates, simpler filing, no need to track investments, standard deduction of ₹75,000 for salaried, full rebate up to ₹12L income.

Old Regime Pros

Incentivises savings via 80C (₹1.5L), health insurance 80D, HRA exemption, home loan interest 24(b) — can significantly reduce tax for high deduction claimers.

Break-even Point

Old regime wins when total deductions (excluding standard deduction) exceed roughly ₹1.5–3.75 lakh depending on your income bracket. Use this calculator to compare.

Standard Deduction — What is it?

The standard deduction is a flat deduction from gross salary income — no bills or receipts required. In FY 2025-26 under the new regime, the standard deduction is ₹75,000 (increased from ₹50,000 in Budget 2024). Under the old regime, it remains ₹50,000. It is automatically available to salaried employees and pensioners.

Section 80C — Full List of Investments

Under the old regime, you can claim up to ₹1,50,000 under Section 80C. This covers a wide variety of tax-saving instruments:

EPFPPFELSS Funds LIC PremiumNSC5-yr FD (Tax Saver) Home Loan PrincipalSukanya Samriddhi Tuition FeesSCSSNPS Tier-I

New Regime Tax Slabs — FY 2025-26 (Budget 2025)

Income RangeTax RateRebate / Note
₹0 – ₹4,00,0000%Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%Full rebate 87A if taxable income ≤ ₹12L
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%Surcharge applies above ₹50L

Surcharge & Health and Education Cess

A surcharge is levied on the tax amount (not income) when income exceeds ₹50 lakh. The Health and Education Cess of 4% is levied on (tax + surcharge) for everyone — there is no minimum income exemption from cess.

Gross IncomeSurcharge RateNote
Up to ₹50 lakhNil
₹50L – ₹1 Crore10%Both regimes
₹1Cr – ₹2 Crore15%Both regimes
₹2Cr – ₹5 Crore25%Both regimes
Above ₹5 Crore37% (old) / 25% (new)New regime caps at 25%

Important Tax Deadlines FY 2025-26

  • Jul 31, 2026 ITR filing deadline for individuals (non-audit cases)
  • Oct 31, 2026 ITR filing for audit cases
  • Mar 15, 2026 Last advance tax instalment (100% of tax liability)
  • Dec 15, 2025 3rd advance tax instalment (75% cumulative)
  • Sep 15, 2025 2nd advance tax instalment (45% cumulative)
  • Jun 15, 2025 1st advance tax instalment (15% of estimated tax)

Frequently Asked Questions

Which tax regime is better — new or old?
It depends on your deductions. The new regime is better if you have few investments and deductions — especially since income up to ₹12 lakh gets full rebate under 87A in FY 2025-26 (effectively zero tax). The old regime benefits those who claim large 80C, HRA, and home loan interest deductions. Use this calculator's comparison table to find out instantly for your specific situation.
How is income tax calculated in India?
Income tax in India is calculated on a slab basis. First, deductions (standard deduction, 80C, etc.) are subtracted from gross income to arrive at taxable income. Then, tax is computed at the applicable slab rates. A rebate under Section 87A may eliminate the tax entirely for lower incomes. Finally, surcharge (if applicable) and 4% Health & Education Cess are added. This calculator automates all those steps.
What is the Section 87A rebate?
Section 87A provides a tax rebate to resident individuals whose net taxable income does not exceed a threshold. Under the new regime in FY 2025-26, if taxable income is ≤ ₹12,00,000, a full rebate of up to ₹60,000 is available, making the effective tax zero. Under the old regime, the rebate is up to ₹12,500 for taxable income ≤ ₹5,00,000. Note: the rebate does not apply to special rate incomes like capital gains.
What is Health and Education Cess?
Health and Education Cess is a 4% charge levied on the total income tax (including surcharge). It is collected to fund health infrastructure and education initiatives. Cess applies to all taxpayers regardless of income level — even if your income falls in the 0% slab but you have some tax liability, cess is added on top. It is not a deductible expense.
Can I switch between new and old regime every year?
Salaried employees can switch between new and old regime every year at the time of filing their ITR. However, if you have business income, you can switch from old to new only once, and once you opt for the new regime with business income, you cannot go back to the old regime. It's a good practice to compare both regimes every year before filing.
What is surcharge and when does it apply?
Surcharge is an additional tax levied on the income tax when gross total income exceeds ₹50 lakh. It is charged at 10% (₹50L–₹1Cr), 15% (₹1Cr–₹2Cr), 25% (₹2Cr–₹5Cr), and 37% (above ₹5Cr in the old regime). The new regime caps the maximum surcharge at 25%. Marginal relief is available to ensure the net tax does not exceed the incremental income over the threshold.