Income Tax Calculator India FY 2025–26 & AY 2026–27
Simulate your personal income tax obligations under the default New Tax Regime (Section 115BAC) vs. Old Tax Regime with live side-by-side comparison, Section 87A rebate, standard deduction, and 80C/80D/HRA deductions.
You save ₹76,440 in taxes under the New Regime compared to the Old Regime.
New Tax Regime (Sec 115BAC)
Standard Deduction: ₹75,000 · Zero tax up to ₹12.75L
Old Tax Regime (With Deductions)
Total Claimed Deductions: ₹3,95,000
Old Regime Tax Deductions & Exemptions
Total: ₹3,95,000Detailed Slab-Wise Tax Calculations
Official CBDT income brackets applied to your taxable income under both regimes.
| Tax Slab Range | Tax Rate | New Regime Tax | Old Regime Tax |
|---|---|---|---|
| ₹0 to ₹4 Lakh | 0% | ₹0 | ₹12,500 |
| ₹4 Lakh to ₹8 Lakh | 5% | ₹20,000 | ₹61,000 |
| ₹8 Lakh to ₹12 Lakh | 10% | ₹32,500 | — |
| ₹12 Lakh to ₹16 Lakh | 15% | ₹0 | — |
| ₹16 Lakh to ₹20 Lakh | 20% | ₹0 | — |
| ₹20 Lakh to ₹24 Lakh | 25% | ₹0 | — |
| Above ₹24 Lakh | 30% | ₹0 | — |
| Total Slab Base Tax | ₹52,500 | ₹73,500 | |
| Less: Rebate u/s 87A | − ₹52,500 | − ₹0 | |
| Add: Health & Education Cess (4%) | + ₹0 | + ₹2,940 | |
| FINAL TAX PAYABLE | ₹0 | ₹76,440 | |
About Indian Income Tax Calculator (FY 2025–26 / AY 2026–27)
In-depth comparative analysis of the New Tax Regime (Section 115BAC) versus Old Tax Regime, Section 87A rebate rules, and tax minimization strategies.
In the Union Budget, the Central Board of Direct Taxes (CBDT) cemented the New Tax Regime under Section 115BAC of the Income Tax Act as the statutory default tax regime for all individual assesses, Hindu Undivided Families (HUFs), and Associations of Persons (AOPs). Taxpayers wishing to compute liability under the legacy Old Tax Regime must explicitly opt out of the default regime before the statutory ITR filing deadline (July 31 for non-audit individual taxpayers).
The New Regime introduces revised, broader progressive tax brackets and enhances the statutory standard deduction for salaried individuals and pensioners to ₹75,000. Crucially, under Section 87A, resident individuals whose taxable income does not exceed ₹7,00,000 receive a full tax rebate of up to ₹25,000, effectively reducing tax liability to ₹0 for salaried individuals earning up to ₹7,75,000 (Gross Salary minus ₹75,000 Standard Deduction).
Conversely, the Old Tax Regime retains higher marginal tax brackets (peaking at 30% for taxable income above ₹10 Lakhs) but permits extensive itemized deductions, including Section 80C (up to ₹1.5 Lakhs in EPF, PPF, ELSS, Life Insurance), Section 80D (health insurance up to ₹1 Lakh for self and senior parents), Section 24(b) (home loan interest up to ₹2 Lakhs for self-occupied property), House Rent Allowance (HRA) exemptions, and Leave Travel Allowance (LTA). Deciding between both regimes hinges on whether your verifiable itemized deductions exceed the "break-even deduction threshold"—typically ₹3.75 Lakhs to ₹4.25 Lakhs depending on gross income.
Step-by-Step Usage Guide
Enter Annual Gross Income
Input your total CTC or gross earnings, including basic pay, allowances, annual bonuses, freelance receipts, and interest income.
Indicate Employment Category
Select Salaried / Pensioner to automatically apply the ₹75,000 Standard Deduction under the New Regime (₹50,000 under Old Regime).
Add Itemized Deductions (Old Regime)
If comparing the Old Regime, enter your Section 80C investments, 80D medical premiums, HRA exemption, and home loan interest.
Review Comparative Tax Liability
Compare the net tax payable side-by-side, including 4% Health and Education Cess, and download the full assessment report.
Practical Case Study: Salaried Professional Earning ₹12,00,000 Gross CTC
Consider a resident salaried software engineer with a gross annual salary of ₹12,00,000 deciding between the New and Old Tax Regimes for FY 2025-26.
- ›New Regime Taxable Income = ₹12,00,000 - ₹75,000 = ₹11,25,000
- ›Slab 1 (₹0 to ₹4L @ 0%) = ₹0
- ›Slab 2 (₹4L to ₹8L @ 5%) = ₹4,00,000 × 5% = ₹20,000
- ›Slab 3 (₹8L to ₹11.25L @ 10%) = ₹3,25,000 × 10% = ₹32,500
- ›New Regime Base Tax = ₹20,000 + ₹32,500 = ₹52,500
- ›Add Health & Education Cess (4%) = ₹52,500 × 4% = ₹2,100
- ›Total New Regime Tax Payable = ₹54,600
- ›Old Regime Comparison: Taxable = ₹12,00,000 - ₹50,000 (Std) - ₹1,75,000 (80C+80D) = ₹9,75,000. Base Tax = ₹1,07,500 + 4% cess = ₹1,11,800
- ›Verdict: The New Regime saves this taxpayer ₹57,200 in net cash without locking funds in 3-year ELSS or insurance!
To break even with the New Regime at ₹12L gross income, this employee would need total itemized deductions of over ₹3.65 Lakhs under the Old Regime.
Formula & Mathematical Specification
New Tax Regime Brackets u/s 115BAC (FY 2025–26)
Tax is computed progressively across each bracket. Standard deduction of ₹75,000 applies to salaried income before bracket assignment.
- Standard Deduction:₹75,000 flat reduction from gross salary for salaried & pensioners
- Section 87A Rebate:Full rebate up to ₹25,000 if taxable income <= ₹7,00,000 (effective zero tax up to ₹7.75L)
- Health & Education Cess:Mandatory 4% surtax levied on the total income tax payable
Best Practices & Pro Tips
- ✓Employer NPS Contribution u/s 80CCD(2): Contributions made by your employer to your NPS account (up to 14% of Basic for Central Govt, 10% for private sector) remain 100% tax-exempt even under the New Tax Regime!
- ✓Calculate the Break-Even Deduction: If your total eligible deductions under 80C, 80D, 24(b), and HRA are below ₹3.75 Lakhs, the New Regime is almost always financially superior.
- ✓Switching Flexibility for Salaried Employees: Salaried individuals without business/professional income can freely switch between the New and Old Regimes every financial year at the time of ITR filing.
- ✓Tax-Free Gratuity: Statutory gratuity received on retirement or separation up to ₹20 Lakhs is exempt from tax under Section 10(10).
Common Mistakes to Avoid
- ✗Assuming Section 80C applies in New Regime: Investments in PPF, ELSS, life insurance, and school tuition fees cannot be deducted under the New Tax Regime.
- ✗Missing the July 31 ITR Filing Deadline: If you fail to file your Income Tax Return by the statutory deadline (July 31), you forfeit the right to opt for the Old Tax Regime and will be forcibly assessed under the New Regime.
- ✗Ignoring Surcharge Caps: High-net-worth individuals earning over ₹5 Crore have their surcharge capped at 25% under the New Regime, versus 37% under the Old Regime.
- ✗Forgetting Interest from Savings Accounts: Under the Old Regime, up to ₹10,000 in savings bank interest is deductible under Section 80TTA (₹50,000 under 80TTB for seniors). This deduction is unavailable under the New Regime.
100% In-Browser Privacy & Data Security
All tax simulations and deduction breakdowns run purely in client-side JavaScript. Your salary, financial investments, and taxable income numbers never leave your device.
Frequently Asked Questions
What is the zero-tax limit under the New Tax Regime for salaried employees?▼
Salaried employees and pensioners pay ₹0 tax on gross income up to ₹7,75,000. This is achieved because the ₹75,000 Standard Deduction reduces taxable income to ₹7,00,000, at which point the Section 87A rebate wipes out the entire ₹25,000 tax liability.
Can business owners or freelance professionals switch between regimes every year?▼
No. Taxpayers with income from business or profession (PGBP) can only opt out of the New Regime once in their lifetime and cannot switch back and forth annually. Salaried individuals with only salary, house property, and other sources income can choose annually.
Is HRA (House Rent Allowance) exemption available in the New Tax Regime?▼
No. HRA exemptions under Section 10(13A) are completely discontinued under the New Tax Regime. If you pay significant rent and receive substantial HRA from your employer, model both regimes using the calculator to see if the Old Regime yields greater net savings.
How is Health and Education Cess calculated?▼
Health and Education Cess is calculated as 4% of the sum of total income tax and applicable surcharge. It is added to the tax amount after deducting the Section 87A rebate.
What happens to home loan interest deductions under the New Regime?▼
Under the New Tax Regime, interest paid on home loans for a self-occupied property (up to ₹2 Lakhs under Section 24b) cannot be set off against salary or other income heads. However, interest on let-out rental property can still be set off against rental income, but losses cannot be carried over to other income heads.
Does Learntrix transmit or store my salary and tax data?▼
Never. The Learntrix tax calculation engine executes 100% locally inside your web browser sandbox. No monetary figures, deduction inputs, or personal financial details are sent over the network or stored in any remote database.
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This calculator is based on publicly available tax slabs for FY 2025-26 / AY 2026-27 and is intended for educational estimation only. It does not account for all deductions, exemptions, surcharges, cess, or specific circumstances unique to your case. Tax laws change frequently. Learntrix accepts no liability for errors or decisions arising from use of this tool. Consult a Chartered Accountant (CA) or certified tax professional for accurate tax computation.
Learntrix · Accuracy not guaranteed · For reference only
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