Free Tool
India Income Tax Calculator
Use this free calculator to estimate your India income tax for Financial Year 2025-2026 (Assessment Year 2026-2027). Compare the new tax regime (with 7 slabs, ₹75,000 standard deduction, zero tax up to ₹12.75L) against the old tax regime (with Section 80C, 80D, HRA and home loan deductions).
Updated for Budget 2025 with correct FY 2025-26 slabs, Section 87A rebate of ₹60,000, surcharge, 4% Health & Education Cess, and marginal relief. Results are estimates -- verify with a CA or the Income Tax Department.
India Income Tax Calculator
New Regime (₹12.75L zero-tax) & Old Regime · 80C / 80D / HRA / Home Loan · Surcharge · Marginal Relief · TDS Offset
Enter tax already deducted or paid to see your net refund or balance payable.
In one sentence: Free Income Tax Department-aligned India tax calculator comparing new regime (7 slabs, zero tax up to ₹12.75L) vs old regime (deductions under 80C, 80D, HRA).
Key data:
- New regime slabs (FY 2025-26): 0% up to ₹4L, 5%–30% above
- Section 87A rebate: up to ₹60,000 — zero tax up to ₹12L taxable income
- Old regime: up to ₹1.5L deduction under Section 80C
- Standard deduction: ₹75,000 (salaried) in new regime
Official source: Income Tax Department — CBDT
India Tax System Overview
Quick answer: India's financial year runs April 1 to March 31. For FY 2025-2026, taxpayers choose between the new tax regime (default since FY 2023-24, with 7 progressive slabs from 0% to 30% and a ₹75,000 standard deduction for salaried) or the old tax regime (with higher rates but deductions under Section 80C up to ₹1.5L, 80D, HRA, and home loan interest).
New Tax Regime (FY 2025-2026) -- Budget 2025
Quick answer: Under the new regime, income up to ₹4,00,000 is tax-free, with rates rising progressively: 5% (₹4–8L), 10% (₹8–12L), 15% (₹12–16L), 20% (₹16–20L), 25% (₹20–24L), and 30% (above ₹24L). The Section 87A rebate (up to ₹60,000) eliminates tax entirely for taxable income up to ₹12,00,000 — effectively ₹12,75,000 gross for salaried individuals after the ₹75,000 standard deduction.
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 to ₹8,00,000 | 5% |
| ₹8,00,001 to ₹12,00,000 | 10% |
| ₹12,00,001 to ₹16,00,000 | 15% |
| ₹16,00,001 to ₹20,00,000 | 20% |
| ₹20,00,001 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard Deduction: ₹75,000 (salaried/pensioners) · Section 87A Rebate: Up to ₹60,000 -- effective zero tax for taxable income up to ₹12,00,000 (₹12,75,000 gross for salaried)
Old Tax Regime (FY 2025-2026)
Quick answer: The old regime offers a lower tax-free threshold (₹2,50,000 general, ₹3,00,000 for seniors, ₹5,00,000 for super seniors) with higher rates (5%, 20%, 30%) but allows significant deductions under Section 80C (up to ₹1.5L), 80D (health insurance), HRA, and home loan interest (Sec 24(b), up to ₹2,00,000).
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Available Deductions: Section 80C (₹1,50,000), Section 80D (₹25,000–₹50,000), HRA, LTA, home loan interest, and more.
Key Deductions (Old Regime)
- Section 80C: Up to ₹1,50,000 for PPF, ELSS, EPF, life insurance, NSC, tuition fees, principal repayment on home loan
- Section 80D: Health insurance premiums up to ₹25,000 (₹50,000 for senior citizens)
- HRA (House Rent Allowance): Exempt based on actual HRA received, rent paid, and salary
- Section 80CCD(1B): Additional ₹50,000 for NPS contributions
- Section 24(b): Home loan interest up to ₹2,00,000 for self-occupied property
Can I claim HRA exemption if I pay rent to my parents?
Yes, you can claim HRA exemption for rent paid to your parents, provided the parents declare the rental income in their ITR and you have a valid rent agreement and receipts. However, you cannot pay rent to your spouse or minor child and claim HRA exemption. The rent must also be reasonable — the AOs may question inflated rent payments intended solely to reduce tax.
Does the ₹75,000 standard deduction apply in both regimes?
No. The ₹75,000 standard deduction (for salaried employees) applies only under the new tax regime (announced in Budget 2025). Under the old regime, the standard deduction remains ₹50,000. Pensioners also receive the standard deduction: ₹75,000 (new regime) vs ₹50,000 (old regime). The new regime's higher standard deduction partially compensates for the loss of other deductions like 80C and HRA.
Which Regime Should You Choose?
The new regime generally benefits those with income above ₹15,00,000 or those who don't claim many deductions. The old regime is better for those who maximize Section 80C, 80D, HRA, and home loan deductions. You can switch between regimes annually when filing your ITR.
Filing Your ITR
Income Tax Returns for FY 2025-2026 are due by July 31, 2026 for individuals not requiring audit. File through:
- Income Tax e-Filing Portal
- A chartered accountant
- Compatible tax software
For more details, visit the Income Tax Department or use the official ITR selection tool.
Choosing Between New and Old Tax Regimes
Quick answer: The new regime is better if you earn above ₹15,00,000 or claim few deductions. The old regime wins if you maximize Section 80C (up to ₹1.5L), 80D, HRA, and home loan interest deductions. Use our calculator above to compare both regimes instantly based on your actual income and investments.
Can I switch between new and old tax regimes every year?
Salaried employees can switch freely between regimes each year when filing their ITR. However, business owners and professionals who opt for the new regime under Section 115BAC(1A) cannot switch back to the old regime for subsequent years. This one-time lock-in makes the regime choice more consequential for self-employed individuals.
One of the most important decisions for Indian taxpayers is choosing between the new tax regime (default since FY 2023-2024) and the old tax regime with deductions. Here's a detailed comparison to help you decide:
When the New Regime is Better
The new regime generally benefits individuals with annual income above ₹15,00,000 who don't claim many deductions. If you don't have home loan interest, don't max out Section 80C investments, and don't claim HRA, the new regime's lower rates (especially the 15% and 20% middle brackets) usually result in lower overall tax. Additionally, salaried employees can claim a standard deduction of ₹75,000 in the new regime, which partially compensates for lost deduction opportunities.
When the Old Regime is Better
The old regime is preferable for individuals who maximize tax-saving investments. If you contribute ₹1,50,000 to PPF/ELSS/EPF (Section 80C), pay health insurance premiums (Section 80D), have home loan interest deductions (Section 24), and claim HRA exemption, the combined benefit often exceeds the new regime's rate advantage. Middle-income earners (₹8,00,000 to ₹15,00,000) with disciplined saving habits typically save more under the old regime.
New Regime Deductions Still Available
Important note: The new regime does NOT eliminate all deductions. You can still claim the standard deduction (₹75,000 for salaried, ₹50,000 for pensioners), employer NPS contributions (Section 80CCD(2)), and deductions under Section 80CCD(1B) for voluntary NPS contributions up to ₹50,000. You also retain exemptions for leave encashment, gratuity, and VRS proceeds.
Annual Choice and Planning
Salaried employees can switch between regimes annually when filing their ITR, giving you flexibility. However, business owners and professionals who opt for the new regime cannot switch back to the old regime. This makes the decision more critical for self-employed individuals. Most tax experts recommend modeling your taxes under both regimes before deciding, especially if your income or investment patterns change year to year.
For official guidance on regime selection, visit the Income Tax Department's regime comparison tool.