India Income Tax Calculator (New vs. Old Tax Regime FY 2025-26)
वित्तीय वर्ष 2025-26 (कर निर्धारण वर्ष 2026-27) के लिए नई कर व्यवस्था और पुरानी कर व्यवस्था के तहत आयकर देयता, 80C/80D कटौती, एचआरए छूट और धारा 87A रिबेट की सटीक तुलना करें।
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Calculation Methodology & Statutory Rules
Compares income tax liability under the New Tax Regime (Default for FY 2025-26 / AY 2026-27) and the Old Tax Regime.
1.
New Tax Regime Calculation: - Standard Deduction u/s 16(ia) = ₹75,000 for salaried employees.
- Taxable Income (New) = Gross Salary - ₹75,000.
- Slabs (FY 2025-26): * ₹0 to ₹3,00,000: Nil (0%) * ₹3,00,001 to ₹7,00,000: 5% * ₹7,00,001 to ₹10,00,000: 10% * ₹10,00,001 to ₹12,00,000: 15% * ₹12,00,001 to ₹15,00,000: 20% * Above ₹15,00,000: 30% - Section 87A Tax Rebate (New Regime): If Net Taxable Income <= ₹7,00,000, full tax rebate up to ₹25,000 is granted (Net Tax = ₹0).
Marginal relief is computed if income marginally exceeds ₹7,00,000.
Combined with ₹75,00,000 standard deduction, gross income up to ₹7,75,000 incurs zero tax liability.
2.
Old Tax Regime Calculation: - Standard Deduction = ₹50,000.
- HRA Exemption u/s 10(13A) = Minimum of: a) Actual HRA Received b) Rent Paid - 10% of Basic Salary c) 50% of Basic Salary (Metro) or 40% (Non-Metro) - Deductions Allowed: Section 80C (Capped at ₹1,50,000), Section 80D (Capped at ₹25,000 for self/family + ₹25,000/₹50,000 for parents), Section 24(b) Home Loan Interest (Capped at ₹2,00,000 for self-occupied), Section 80CCD(1B) NPS (Capped at ₹50,000).
- Total Deductions (Old) = ₹50,000 + HRA Exemption + 80C + 80D + Sec 24(b) + 80CCD(1B).
- Taxable Income (Old) = Max(0, Gross Salary - Total Deductions).
- Slabs (Old Regime - Below 60 yrs): * ₹0 to ₹2,50,000: Nil (0%) * ₹2,50,001 to ₹5,00,000: 5% * ₹5,00,001 to ₹10,00,000: 20% * Above ₹10,00,000: 30% - Section 87A Rebate (Old Regime): If Net Taxable Income <= ₹5,00,000, full tax rebate up to ₹12,500 is granted.
3.
Cess & Final Tax Comparison: - Health & Education Cess of 4% is added to the calculated tax (after 87A rebate and applicable surcharge) in both regimes.
- The calculator outputs net tax under both regimes and highlights exact tax savings.
Frequently Asked Questions
Q1.What is the difference between the New and Old Tax Regime in India for FY 2025-26 (AY 2026-27)?
The default New Tax Regime offers revised lower slab rates and a standard deduction of ₹75,000 for salaried individuals. With the Section 87A rebate, annual income up to ₹7.75 Lakhs is effectively zero tax. The Old Tax Regime allows claiming exemptions (HRA, LTA) and deductions under Chapter VI-A (Section 80C up to ₹1.5L, 80D health insurance, home loan interest under Section 24b) with higher slab rates.
Q2.How does Section 44ADA Presumptive Taxation work for professionals and freelancers in India?
Under Section 44ADA of the Income Tax Act, eligible professionals (IT consultants, software engineers, doctors, lawyers, chartered accountants) with gross receipts up to ₹75 Lakhs (provided cash receipts don't exceed 5%) can declare 50% of gross receipts as deemed taxable profit without needing to maintain detailed books of account or undergo tax audits.
Q3.How is Gratuity calculated under the Payment of Gratuity Act 1972?
For employees covered under the Gratuity Act who have completed at least 5 years of continuous service: Gratuity = (15 × Last Drawn Basic Salary + DA × Completed Years of Service) ÷ 26. The maximum statutory tax-free gratuity exemption limit is ₹20 Lakhs.
Disclaimer: Results are estimates based on standard tax rules for the 2026 tax year and are provided for informational purposes only. Individual circumstances (deductions, credits, specific state/local rules) may significantly affect your actual tax liability. Always consult a qualified tax professional or accountant for advice specific to your situation.