🇮🇳 India Income Tax Calculator
Calculate your income tax for FY 2025-26 (AY 2026-27) under the New or Old Regime - or compare both side by side. Enter your salary, HRA, 80C investments, home loan interest, NPS, and medical insurance to see your exact tax liability, Section 87A rebate, surcharge, cess, and monthly take-home pay. Budget 2025 slabs included.
🧮 India Income Tax Auto Year
⚠️ Disclaimer: Estimates only. Consult a CA or registered tax professional for your specific situation.
⚖️ New vs Old Regime - Full Comparison
Enter income details in the Calculator tab to see your personalised comparison.
📊 Break-Even Deduction Table
How much total deduction you need in Old Regime to match New Regime tax - by income level.
| Annual Income | New Regime Tax | Old Regime Tax (no ded.) | Need Deductions > |
|---|
Old Regime tax shown with only Standard Deduction (₹50K). If your extra deductions exceed the last column, Old Regime wins.
📋 Tax Slabs AY 2026-27
🆕 New Tax Regime - All Taxpayers (Same for all ages)
| Income Slab | Rate | Notes |
|---|---|---|
| Up to ₹4,00,000 | Nil | Basic exemption limit |
| ₹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 Tax Regime - Below 60 Years
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Senior Citizens (60–80): Nil up to ₹3,00,000 | Super Senior (80+): Nil up to ₹5,00,000
Std Deduction: ₹50,000 (salaried) | 87A Rebate: ₹12,500 if taxable income ≤ ₹5,00,000
💰 Surcharge Rates
| Income Range | New Regime Surcharge | Old Regime Surcharge |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50L – ₹1 crore | 10% | 10% |
| ₹1Cr – ₹2 crore | 15% | 15% |
| ₹2Cr – ₹5 crore | 25% | 25% |
| Above ₹5 crore | 25% (capped) | 37% |
✅ Health & Education Cess: 4% on (Income Tax + Surcharge). Marginal relief applies near surcharge thresholds.
📐 How India Income Tax Works
India Tax Year (FY vs AY)
Step 1: Taxable Income
Step 2: Apply Tax Slabs → Base Tax
Step 3: Section 87A Rebate
Step 4: Surcharge + Cess
HRA Exemption - Old Regime
New Regime - What's Allowed?
❓ Frequently Asked Questions
India Income Tax FY 2025-26 - New Regime, Old Regime & What Budget 2025 Changed
Budget 2025 made the most significant changes to India's income tax structure in years - effectively making the New Regime even more attractive while leaving the Old Regime unchanged. Understanding what changed, how to calculate your tax correctly under both regimes, and which one saves more for your specific income and deduction profile is now more important than ever.
New Regime Tax Slabs FY 2025-26 (Budget 2025)
Budget 2025 restructured the New Regime slabs and significantly raised the 87A rebate threshold:
- 0% - Up to ₹4,00,000 (raised from ₹3L)
- 5% - ₹4,00,001 to ₹8,00,000
- 10% - ₹8,00,001 to ₹12,00,000
- 15% - ₹12,00,001 to ₹16,00,000
- 20% - ₹16,00,001 to ₹20,00,000
- 25% - ₹20,00,001 to ₹24,00,000
- 30% - Above ₹24,00,000
Section 87A rebate under New Regime: up to ₹60,000 (raised from ₹25,000) for taxable income ≤ ₹12 lakh. Standard deduction: ₹75,000 for salaried and pensioners. This combination makes income up to ₹12,75,000 (gross salaried) effectively tax-free under New Regime.
New Regime vs Old Regime - When Does Each Win?
New Regime - Who Benefits Most
- Income up to ₹12.75L salaried (zero effective tax)
- People with low deductions (minimal 80C, no HRA, no home loan)
- Young earners in early career without large investments
- Those who prefer simplicity - fewer records and proofs
- Default regime from FY 2023-24 onward
- NPS employer contribution (80CCD(2)) still allowed
Old Regime - When It Saves More
- High HRA exemption (metro city, paying significant rent)
- Home loan with substantial interest deduction (u/s 24b, ₹2L)
- Full 80C utilisation (₹1.5L) + 80CCD(1B) NPS (₹50K)
- 80D medical insurance premiums (₹25K–₹75K)
- If total deductions exceed ₹3.75L for ₹10L income
- Leave travel allowance, children's education allowance still applicable
Key Deductions Under the Old Regime - Maximum Values
- Section 80C (₹1,50,000 limit): PF/EPF contributions, PPF, ELSS, life insurance premium, NSC, 5-year FD, home loan principal repayment, tuition fees
- Section 80CCD(1B) (₹50,000): Additional NPS Tier-1 contribution over and above 80C - exclusive to NPS
- Section 80D (₹25,000–₹1,00,000): Medical insurance premiums. ₹25K for self/spouse/children; +₹25K for parents; +₹25K for senior citizen parents. Preventive health check-up: ₹5K within these limits.
- Section 24(b) (₹2,00,000): Interest on home loan for self-occupied property
- Section 80E: Full deduction on education loan interest (no cap)
- HRA exemption: Minimum of (actual HRA, rent paid − 10% basic, 50%/40% of basic)
- Section 80TTA/TTB: ₹10,000 on savings account interest (80TTA) or ₹50,000 for senior citizens (80TTB)
Understanding Surcharge and Cess
After calculating the base income tax, two additional charges apply:
- Surcharge - Additional tax for high income. New Regime: 10% surcharge on income ₹50L–₹1Cr; 15% on ₹1Cr–₹2Cr; 25% on ₹2Cr+ (capped at 25% under New Regime). Old Regime: same up to ₹2Cr, then 25% for ₹2Cr–₹5Cr, 37% above ₹5Cr.
- Health & Education Cess - 4% on (income tax + surcharge). Applies to all taxpayers regardless of income level. Cannot be avoided or deducted.
Total tax = Base tax + Surcharge + 4% Cess. For most salaried individuals below ₹50 lakh, only cess applies (no surcharge). For incomes ₹50L+, the surcharge significantly increases the effective tax rate.