What is the standard deduction for FY 2025-26?

For the Financial Year 2025-26, the standard deduction for salaried individuals and pensioners has been increased to ₹75,000 under the New Tax Regime. Under the Old Tax Regime, the standard deduction remains at ₹50,000.

Which tax regime is the default for FY 2025-26?

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.

What is the Section 87A tax rebate limit for FY 2025-26 under the New Regime?

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.

How does marginal relief under Section 87A work in the New Tax Regime?

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.

What are the income tax slabs under the New Tax Regime for FY 2025-26?

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%.

What are the income tax slabs under the Old Tax Regime for FY 2025-26?

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.

What tax deductions are allowed under the New Tax Regime?

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.

What deductions can I claim under the Old Tax Regime?

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).

How is House Rent Allowance (HRA) tax exemption calculated?

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.

Is the surcharge rate capped in the New 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.

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Income Tax Calculator India FY 2025-26

Calculator Currency Select currency for display metrics

Taxpayer Profile

Age Group Bracket

< 60 Below 60 60-80 Senior (60-80) 80+ Super Sr. (80+)

Are you a Salaried Employee? Automatically applies Standard Deduction (₹75k New, ₹50k Old)

Income Sources

Gross Annual Salary (₹)

₹0 ₹25L ₹50L ₹75L ₹1Cr

House Property Income / Rent (₹)

₹0 ₹5L ₹10L ₹15L ₹20L

Other Sources Interest/Gains (₹)

₹0 ₹5L ₹10L ₹15L ₹20L

Deductions & Exemptions (Old Regime Only)

Use Interactive HRA Calculator? Enable to calculate HRA Exemption based on rent & basic salary

HRA Exemption Amount (₹)

Section 80C Investments (₹) (Max ₹1.5L)

Includes PPF, ELSS Mutual Funds, Life Insurance, EPF, Home Loan Principal, National Savings Certificate (NSC)

Section 80D (Health Insurance) (₹) (Max ₹1L)

Premium paid for medical health policies (Self/Family/Parents)

Home Loan Interest (Sec 24b) (₹) (Max ₹2L)

Sec 80TTA (Savings Interest) (₹) (Max ₹10k)

Other Deductions (80G/E/NPS) (₹)

Optimizing Strategy

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Tax Liability Breakdown

Old Regime Tax

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New Regime Tax

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Gross Annual Income

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Standard Deduction

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HRA Exemption

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Section 80C Exemption

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Section 80D Exemption

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Home Loan Interest (24b)

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Savings Interest Deduction

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Other Exemption/Excl.

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Net Taxable Income

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Tax (Incl. 87A Rebate/Relief)

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Surcharge & Relief

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Health & Education Cess (4%)

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Effective Tax Rate

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Visual Slabs Breakdown

Tax Calculation Ledger

Old Regime Slabs Details

Tax Slab	Rate	Taxable Income	Tax Amount

Tax Calculation Ledger

New Regime Slabs Details

Tax Slab	Rate	Taxable Income	Tax Amount

FY 2025-26 Tax Planning

Income Tax Calculator – Old vs New Regime Guide (FY 2025-26)

An Income Tax Calculator computes exact tax liabilities under the Income Tax Department FY 2025-26 (AY 2026-27) budget rules, comparing Old and New tax regimes side by side.

What is an Income Tax Calculator?

An online tax estimator that compares income tax liabilities under FY 2025-26 rules for the New Tax Regime (with updated ₹75,000 standard deduction) vs the Old Tax Regime.

Key Benefits of Using an Income Tax Calculator

Increased Standard Deduction: ₹75,000 standard deduction for salaried individuals in New Regime.
Zero Tax Limit: Taxable income up to ₹7,00,000 pays ₹0 tax after Sec 87A rebate in New Regime.
Regime Optimization: Compare whether Chapter VI-A deductions make the Old Regime beneficial.

How FY 2025-26 Tax Is Calculated (Live Example)

Calculated for a salaried individual with a Gross Annual Income of ₹12,00,000 under FY 2025-26 rules:

Gross Annual Income ₹12,00,000

New Standard Ded. ₹75,000

New Net Taxable ₹11,25,000

New Regime Tax ₹75,400

• New Regime Slab Calculation: ₹0–₹3L (0%) + ₹3L–₹7L (5% = ₹20k) + ₹7L–₹10L (10% = ₹30k) + ₹10L–₹11.25L (15% = ₹18.75k) = ₹68.75k + 10% NPS + 4% Cess = ₹75,400

• Old Tax Regime (Without Deductions): Taxable ₹11,50,000 → Net Tax = ₹1,48,200

• Regime Comparison Verdict: New Tax Regime saves ₹72,800 in tax for FY 2025-26!

Gross Income: ₹12,00,000 Old Regime Tax: ₹1,48,200 New Regime Tax: ₹75,400

Enter Income Sources

Input basic salary, HRA, bonuses, interest, and other income.

Select Deductions

Input Section 80C, 80D, NPS (80CCD), and HRA exemption details.

Compare & Save

Review side-by-side Old vs New tax breakdown and choose the lowest tax regime.

Results are estimates for informational purposes only and do not constitute financial, investment, tax, or legal advice.

Taxpayer Profile

Income Sources

Deductions & Exemptions (Old Regime Only)

Evaluating...

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Old Regime Slabs Details

New Regime Slabs Details

Income Tax Calculator – Old vs New Regime Guide (FY 2025-26)

What is an Income Tax Calculator?

Key Benefits of Using an Income Tax Calculator

How FY 2025-26 Tax Is Calculated (Live Example)

Enter Income Sources

Select Deductions

Compare & Save

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Input Summary

Tax Payable Comparison