Income Tax Calculator (India)
Calculate your income tax for FY 2025-26 under both old and new regimes. Compare and find which regime saves you more.
What is the Income Tax Calculator?
The income tax calculator helps you estimate your tax liability for FY 2025-26 (AY 2026-27) under both the old and new tax regimes in India. It calculates your tax slab-wise and includes the 4% health and education cess, surcharge (if applicable), and rebate under Section 87A.
New Tax Regime (FY 2025-26)
The new regime offers lower tax rates but does not allow most deductions and exemptions:
- Up to ₹4,00,000: Nil
- ₹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%
Standard deduction of ₹75,000 is available. Rebate under Section 87A applies if taxable income is up to ₹7,00,000 (tax becomes nil).
Old Tax Regime
The old regime has higher tax rates but allows deductions under sections 80C, 80D, HRA exemption, and more:
- Up to ₹2,50,000: Nil (₹3,00,000 for seniors, ₹5,00,000 for super seniors)
- ₹2,50,001 - ₹5,00,000: 5%
- ₹5,00,001 - ₹10,00,000: 20%
- Above ₹10,00,000: 30%
Standard deduction of ₹50,000 is available. Rebate under Section 87A applies if taxable income is up to ₹5,00,000.
Surcharge Rates
Surcharge is levied on the income tax amount (before cess) based on total income:
- ₹50L - ₹1Cr: 10%
- ₹1Cr - ₹2Cr: 15%
- ₹2Cr - ₹5Cr: 25%
- Above ₹5Cr: 37% (old regime) / 25% cap (new regime)
Which Regime Should You Choose?
The new regime generally benefits those with fewer investments and deductions. The old regime is better if you have significant deductions through 80C, 80D, HRA, and other exemptions. Use this calculator to compare both and choose the one that saves you more tax.
Tax Calculation Formula
Where:
- Taxable Income = Gross Income - Standard Deduction - Other Deductions
- Base Tax = Sum of slab-wise tax (or nil if rebate u/s 87A applies)
- Surcharge = Applicable % on base tax for high incomes
- Cess = 4% on (Base Tax + Surcharge)
Income Tax Calculation Example
For an annual income of ₹12,00,000 (age below 60):
New Regime
- Gross Income: ₹12,00,000
- Standard Deduction: ₹75,000
- Taxable Income: ₹11,25,000
- Tax on ₹0 - ₹4L: ₹0
- Tax on ₹4L - ₹8L: ₹20,000
- Tax on ₹8L - ₹11.25L: ₹32,500
- Total Tax: ₹52,500
- Cess (4%): ₹2,100
- Tax Payable: ₹54,600
Old Regime (with ₹1.5L 80C + ₹25K 80D)
- Gross Income: ₹12,00,000
- Standard Deduction: ₹50,000
- 80C + 80D Deductions: ₹1,75,000
- Taxable Income: ₹9,75,000
- Tax on ₹0 - ₹2.5L: ₹0
- Tax on ₹2.5L - ₹5L: ₹12,500
- Tax on ₹5L - ₹9.75L: ₹95,000
- Total Tax: ₹1,07,500
- Cess (4%): ₹4,300
- Tax Payable: ₹1,11,800
In this case, the new regime saves ₹57,200 more.
Frequently Asked Questions
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The new tax regime offers lower tax rates with more slabs but does not allow most deductions (80C, 80D, HRA, etc.). The old regime has higher rates but allows you to claim deductions to reduce taxable income. Choose based on your total deductions.
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The standard deduction is ₹75,000 under the new tax regime and ₹50,000 under the old tax regime for FY 2025-26. This is a flat deduction available to all salaried employees without any proof of expenses.
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Section 87A provides a tax rebate for resident individuals. Under the new regime, if your taxable income (after standard deduction) is up to ₹7,00,000, the entire tax is rebated and you pay zero tax. Under the old regime, the rebate applies if taxable income is up to ₹5,00,000.
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Health and education cess is a surcharge of 4% levied on the total income tax amount (including surcharge, if any). It is applied after calculating the base tax and is used to fund healthcare and education initiatives.
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Surcharge applies when your total income exceeds ₹50 lakhs. The rates are: 10% for ₹50L-₹1Cr, 15% for ₹1Cr-₹2Cr, 25% for ₹2Cr-₹5Cr, and 37% for above ₹5Cr under the old regime. Under the new regime, the maximum surcharge is capped at 25%.
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Yes, the new tax regime is the default regime from FY 2023-24 onwards. You need to specifically opt for the old regime by filing Form 10-IEA if you want to use the old regime. Salaried individuals can switch between regimes each year.
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Section 80C allows deductions up to ₹1,50,000 per year for investments in PPF, ELSS mutual funds, EPF contributions, life insurance premiums, NSC, tax-saving FDs, tuition fees, and home loan principal repayment. This deduction is only available under the old regime.
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Yes, under the old regime, senior citizens (60-80 years) get a higher basic exemption limit of ₹3,00,000 and super senior citizens (above 80) get ₹5,00,000. Under the new regime, the slab structure is the same for all age groups.
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Under Section 80D, you can claim up to ₹25,000 for health insurance premiums for self, spouse, and children. Senior citizens can claim up to ₹50,000. An additional ₹25,000 (₹50,000 for senior citizen parents) can be claimed for parents' insurance. This is available only under the old regime.