Income Tax Calculator India 2026 - New vs Old Tax Regime
Calculate Your Income Tax for FY 2025-26
Enter your annual income to compare tax liability under both new and old tax regimes.
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Which Tax Regime is Better in India?
Understanding New vs Old Tax Regime
From April 2020, the Indian government introduced a new tax regime with lower tax rates but without most deductions and exemptions. Taxpayers can choose between the old regime (with deductions) and new regime (without deductions) based on what saves them more tax.
New Tax Regime (FY 2025-26)
Tax slabs under the new regime:
- ₹0 to ₹3,00,000: Nil
- ₹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%
Standard Deduction: ₹50,000 is available under new regime
No deductions under Section 80C, 80D, HRA, LTA, etc.
Old Tax Regime (FY 2025-26)
Tax slabs under the old regime:
- ₹0 to ₹2,50,000: Nil
- ₹2,50,001 to ₹5,00,000: 5%
- ₹5,00,001 to ₹10,00,000: 20%
- Above ₹10,00,000: 30%
Standard Deduction: ₹50,000
Available deductions:
- Section 80C: Up to ₹1,50,000 (PPF, ELSS, Life Insurance, etc.)
- Section 80D: Up to ₹25,000 (₹50,000 for senior citizens)
- Section 80CCD(1B): Additional ₹50,000 for NPS
- HRA exemption (for salaried individuals)
- LTA (Leave Travel Allowance)
- Home loan interest deduction
Who Should Choose New Tax Regime?
- Individuals with lower deductions (less than ₹2.5 lakhs)
- Those who don't invest in tax-saving instruments
- People with income between ₹7-15 lakhs with minimal deductions
- Those who prefer simpler tax filing without claiming deductions
Who Should Choose Old Tax Regime?
- Individuals who actively invest in tax-saving instruments
- Those claiming HRA exemption
- People with home loans (claiming interest deduction)
- High earners (above ₹15 lakhs) with substantial deductions
- Senior citizens with medical expenses
Income Tax Saving Tips for India
Popular Tax Saving Investments (Section 80C)
- Public Provident Fund (PPF): Safe investment with tax-free returns
- Equity Linked Savings Scheme (ELSS): Mutual funds with 3-year lock-in
- Life Insurance Premium: Term and traditional insurance policies
- National Pension System (NPS): Retirement savings with additional ₹50,000 benefit
- Tax Saver Fixed Deposits: 5-year FDs with guaranteed returns
- Sukanya Samriddhi Yojana: For girl child education and marriage
- Employee Provident Fund (EPF): Mandatory for salaried employees
Health Insurance (Section 80D)
- Self, spouse, and children: Up to ₹25,000
- Parents (below 60 years): Additional ₹25,000
- Parents (above 60 years): Additional ₹50,000
- Preventive health check-up: ₹5,000 within above limits
Other Important Deductions
- Section 24(b): Home loan interest up to ₹2,00,000
- Section 80E: Education loan interest (no limit)
- Section 80G: Donations to charitable organizations
- Section 80TTA: Savings account interest up to ₹10,000
- Section 80CCD(1B): Additional NPS contribution up to ₹50,000
Tax Planning Timeline
Don't wait until March 31st to plan your taxes. Start early:
- April-June: Review last year's returns, plan for current year
- July-December: Invest in tax-saving instruments gradually
- January-March: Complete remaining investments, submit proofs to employer
- Before July 31: File your income tax return
Looking for Tax-Saving Investments?
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Compare InvestmentsFrequently Asked Questions (FAQ)
Which tax regime is better for me - old or new?
It depends on your income and deductions. The new tax regime offers lower tax rates but no deductions under Section 80C, 80D, etc. The old regime has higher rates but allows deductions. Use our calculator to compare both regimes based on your income.
What is the standard deduction in FY 2025-26?
The standard deduction for salaried individuals is ₹50,000 under both old and new tax regimes for FY 2025-26.
Can I switch between old and new tax regime?
Yes, salaried individuals can switch between old and new tax regimes every year. However, business owners can switch only once during their lifetime.
What are the new tax slabs for FY 2025-26?
Under new regime: 0-3L: Nil, 3-7L: 5%, 7-10L: 10%, 10-12L: 15%, 12-15L: 20%, Above 15L: 30%. Under old regime: 0-2.5L: Nil, 2.5-5L: 5%, 5-10L: 20%, Above 10L: 30%.
What is Section 87A rebate?
Section 87A provides a tax rebate. Under the new regime, if your taxable income is up to ₹7 lakhs, you get a rebate equal to the tax amount, effectively making your tax liability zero.
When is the deadline to file income tax return?
For individuals, the deadline is July 31st of the assessment year. For businesses requiring audit, it's September 30th. Late filing attracts penalties.