Income Tax Calculator

The New Tax Regime is the default tax regime in India for FY 2025-26. If you wish to file your taxes under the Old Tax Regime, you must actively opt out of the New Regime when filing your income tax return.

Under the New Tax Regime for FY 2025-26, a tax rebate under Section 87A is available for resident individuals whose net taxable income does not exceed ₹12,000,000. This rebate is up to ₹60,000, making taxable income up to ₹12 lakh completely tax-free.

Marginal relief prevents a sudden increase in tax when taxable income marginally exceeds ₹12 Lakh. If your income is slightly above ₹12 Lakh, your tax is capped at the amount exceeding ₹12 Lakh. For example, if taxable income is ₹12,05,000, the tax is capped at ₹5,000 instead of the standard slab tax of ₹60,750.

Slabs under the New Tax Regime are: Up to ₹4 Lakh: Nil; ₹4 Lakh to ₹8 Lakh: 5%; ₹8 Lakh to ₹12 Lakh: 10%; ₹12 Lakh to ₹16 Lakh: 15%; ₹16 Lakh to ₹20 Lakh: 20%; ₹20 Lakh to ₹24 Lakh: 25%; Above ₹24 Lakh: 30%.

For individuals under 60 years under the Old Regime: Up to ₹2.5 Lakh: Nil; ₹2.5 Lakh to ₹5 Lakh: 5%; ₹5 Lakh to ₹10 Lakh: 20%; Above ₹10 Lakh: 30%. For Senior Citizens (60-80), exemption is up to ₹3 Lakh, and for Super Senior Citizens (80+), it is up to ₹5 Lakh.

The New Tax Regime allows very few deductions. Key eligible deductions include the Standard Deduction of ₹75,000 (for salaried/pensioners), employer contribution to NPS under Section 80CCD(2), and deduction for Agniveer Corpus Fund under Section 80CCH.

Under the Old Tax Regime, you can claim Section 80C (up to ₹1.5 Lakh for PPF, EPF, ELSS, LIC, Home Loan Principal), Section 80D (Health Insurance up to ₹1 Lakh depending on age), HRA exemption, LTA exemption, and Section 24b (Home Loan Interest up to ₹2 Lakh).

HRA tax exemption is the minimum of three values: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary + DA, or (3) 50% of basic salary for metro cities (40% for non-metro cities). HRA exemption is only available under the Old Tax Regime.

Yes, under the New Tax Regime, the maximum surcharge rate is capped at 25% for taxable incomes exceeding ₹2 Crore (including above ₹5 Crore). In the Old Tax Regime, the surcharge is up to 37% for incomes exceeding ₹5 Crore.