Income Tax Calculator: Old Regime vs New Regime

Calculate income tax in both regimes (Old vs New) — with deductions, HRA, standard deduction, surcharge, and cess. Side-by-side comparison and best regime recommendation.

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In India, there are two Income Tax regime options (FY 2025-26 / AY 2026-27): the Old Regime (deductions allowed but higher rates) and the New Regime (most deductions not available but with lower rates + standard deduction of Rs 75,000).

New Regime slabs (FY 2025-26): 0-4L = 0%, 4-8L = 5%, 8-12L = 10%, 12-16L = 15%, 16-20L = 20%, 20-24L = 25%, 24L+ = 30%. Standard deduction Rs 75,000. Rebate u/s 87A up to taxable income Rs 12L = zero tax (effectively up to ~Rs 12.75L gross income tax-free).

Old Regime slabs: 0-2.5L = 0%, 2.5-5L = 5%, 5-10L = 20%, 10L+ = 30%. Standard deduction Rs 50,000. Plus deductions: Sec 80C (Rs 1.5L PPF/ELSS/insurance/home loan principal), 80D (health insurance Rs 25K self + 50K parents), 80CCD (NPS Rs 50K additional), 80G (donations), 80E (education loan interest), Sec 24(b) (home loan interest Rs 2L for self-occupied), HRA exemption.

This free calculator takes gross salary, savings (80C/80D/etc), HRA components, home loan interest, and donations as input, computes tax in both regimes, and displays them side-by-side. Recommendation: "Old Regime saves Rs X" or "New Regime saves Rs Y" based on your numbers.

General rule of thumb: if total deductions across 80C + 80D + Sec 24 + HRA add up to Rs 4L+, the Old Regime is usually better. Below Rs 3L in deductions, the New Regime is usually better (lower rates win).

The calculator also computes surcharge (10% above 50L, 15% above 1Cr, 25% above 2Cr, 37% above 5Cr — capped at 25% in the New Regime) and a 4% Health & Education Cess on total tax. Surcharge carries marginal relief: when income just crosses a threshold, the extra tax cannot exceed the extra income, so a few thousand rupees over ₹50 lakh does not suddenly cost lakhs. The rebate under Section 87A (full up to ₹12 lakh taxable in the New Regime, ₹5 lakh in the Old) carries its own marginal relief the same way.

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Open Income Tax Calculator FY 2025-26 (Old vs New Regime) →

Frequently Asked Questions

Why was the New Regime made the default for FY 2025-26?
In Budget 2023, the New Regime was made the default to simplify compliance — it is easier for most taxpayers (non-investors). The standard deduction was increased to Rs 75K (Rs 50K in Old). However, the option to opt into the Old Regime remains available every year by filing Form 10-IEA before ITR filing.
How much 80C deduction do you get in the Old Regime?
A maximum of Rs 1.5 lakh combined across PPF, ELSS, LIC premium, home loan principal repayment, EPF employee contribution, NPS Tier-1 (under 80C), Sukanya Samriddhi, tax-saver FD (5-yr), NSC, tuition fees for 2 children. Important: 80C max is Rs 1.5L TOTAL, not per item.
Do salaried individuals get the standard deduction in the New Regime?
Yes — a Rs 75,000 standard deduction is available to salaried employees and pensioners in the New Regime too (increased in Budget 2024). Effectively, this makes gross income up to ~Rs 12.75L tax-free under the New Regime due to the 87A rebate.
Is HRA exemption available only in the Old Regime?
Yes, HRA exemption u/s 10(13A) is available only in the Old Regime. HRA is not exempt in the New Regime. Formula: min of (a) actual HRA received, (b) 50% of basic salary (40% in non-metro), (c) actual rent paid minus 10% of basic. Rent receipts and PAN of the landlord (if annual rent > Rs 1L) are required.
How do you get the extra Rs 50K NPS deduction?
Under Sec 80CCD(1B), an additional Rs 50,000 is available on NPS Tier-1 contributions, ON TOP of the Rs 1.5L 80C limit. Old Regime only. Employer NPS contribution u/s 80CCD(2) up to 10% of basic is also tax-deductible (no limit, both regimes). Both self-employed and salaried are eligible.

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