Income Tax Calculator
Compare your income tax under the old and new regimes for FY 2025-26 (AY 2026-27) in India, with Budget 2025 slabs, the 87A rebate, surcharge, and 4% cess — then see which regime saves you more.
About the Income Tax Calculator
India lets you choose between two tax regimes each year. The new regime offers wider slabs (0/5/10/15/20/25/30% across ₹4 lakh bands) and a ₹75,000 standard deduction for salaried taxpayers, but disallows most deductions; a Section 87A rebate makes income up to ₹12 lakh tax-free, with marginal relief just above that threshold. The old regime keeps lower slab thresholds and an age-based basic exemption but allows deductions such as 80C, 80D, home-loan interest, NPS and HRA. This tool computes both and recommends the cheaper one.
Frequently asked questions
- Old vs new tax regime — which is better?
- It depends on your deductions. The new regime usually wins if you claim few deductions, thanks to wider slabs and the ₹12 lakh rebate. The old regime can win if you fully use 80C, 80D, home-loan interest and HRA. This calculator computes both and tells you which saves more for your numbers.
- What is the Section 87A rebate in the new regime for FY 2025-26?
- Under the new regime, the 87A rebate makes taxable income up to ₹12,00,000 effectively tax-free (₹12.75 lakh for salaried after the ₹75,000 standard deduction). Just above the limit, marginal relief caps the tax at the amount by which income exceeds ₹12 lakh.
- Which deductions are allowed under the new regime?
- The new regime allows the standard deduction (₹75,000 for salaried) and employer NPS contributions, but disallows most others such as 80C, 80D, HRA and home-loan interest. Those deductions apply only to the old regime in this calculator.
- Does this include surcharge and cess?
- Yes. It applies the surcharge slabs (capped at 25% in the new regime) and a 4% health and education cess. Surcharge marginal relief at crore-level incomes is not modelled.