Free Online Financial Calculators

Income Tax Calculator FY 2025-26

Old Regime vs New Regime — Compare & Save

Income Details

Age

Annual Income (₹)

80C Deductions (max ₹1,50,000)

80D Health Insurance (max ₹25,000)

Home Loan Interest 24(b) (max ₹2,00,000)

NPS 80CCD(1B) (max ₹50,000)

Income Tax Calculation FY 2025-26 — A Complete Guide

Income tax rules change almost every year, and the Financial Year 2025-26 is no exception. For salaried employees and freelancers alike, understanding how much tax you owe is crucial for financial planning. If you are confused about which tax regime to choose—Old or New—or simply want to calculate your exact tax liability, you are in the right place. Our Income Tax Calculator for FY 2025-26 simplifies this complex process. Just enter your income and deductions, and instantly see which regime saves you more money.

New Regime vs Old Regime: Which is Better for You?

This is the most common question every taxpayer faces. The New Regime offers lower tax slabs but does not allow you to claim most deductions. The Old Regime has higher tax slabs but allows various exemptions like 80C, 80D, HRA, and home loan interest. If you have significant investments or expenses that qualify for deductions, the Old Regime might be more beneficial. However, if you prefer a simpler tax structure without the hassle of saving receipts, the New Regime is often cheaper. Our calculator compares both regimes side-by-side so you can make an informed decision.

New Regime Tax Slabs for FY 2025-26

Here are the income tax slabs for the New Regime:

A standard deduction of ₹75,000 is available for salaried individuals under the New Regime. Additionally, a 4% Health and Education Cess is levied on the total tax amount.

Understanding the Calculation with an Example

Let's say your annual income is ₹20,00,000 (New Regime). Here is how your tax is calculated:

Total tax before cess = ₹2,00,000. Add 4% cess = ₹8,000. Total Tax = ₹2,08,000. By using the calculator, you can compare this with the Old Regime to see if claiming deductions (like 80C, home loan interest) saves you more.

Section 87A Rebate: Zero Tax Benefit

If your taxable income is up to ₹12,00,000 (New Regime), you can claim a rebate under Section 87A, making your tax liability zero. This means if you earn up to ₹12 lakh, you pay zero income tax. The best part? This rebate is applied automatically when you use our calculator.

Frequently Asked Questions (FAQs)

Q: What is the standard deduction amount?
A: It is ₹75,000 for the New Regime and ₹50,000 for the Old Regime for salaried individuals.

Q: Can I switch between the Old and New Regime every year?
A: Salaried individuals can choose a different regime every year while filing their returns. However, business owners can only switch once.

Q: What deductions can I claim under the Old Regime?
A: You can claim deductions like 80C (up to ₹1.5 lakh), 80D (health insurance), HRA (rent allowance), home loan interest (up to ₹2 lakh), and more.

Q: Are senior citizens eligible for different tax slabs?
A: Yes, in the Old Regime, senior citizens (60-80 years) get a higher basic exemption limit (₹3 lakh), and super seniors (80+) get ₹5 lakh. The New Regime does not differentiate based on age.

When Should You Use This Calculator?

Use this calculator during tax planning to estimate your liability, or before submitting investment proofs to your employer to select the best regime. It is useful for everyone—salaried employees, freelancers, and pensioners.

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