Old regime or new regime — which is better?

New Regime is usually better if your deductions are below roughly ₹4 lakh per year. Old Regime wins if you fully use 80C (₹1.5L), 80D (₹25K-1L), home loan interest (up to ₹2L), HRA, and NPS. This calculator shows the exact difference for your numbers.

What is the rebate under Section 87A for FY 2025-26?

Under the new regime, income up to ₹12 lakh is effectively tax-free thanks to the ₹60,000 rebate. Under the old regime, the limit is ₹5 lakh with a ₹12,500 rebate.

Are the slabs different for senior citizens?

Yes — under the Old Regime, the basic exemption is ₹3 lakh for ages 60-80 and ₹5 lakh for ages 80+. The New Regime does not offer age-based exemptions.

How is surcharge calculated?

Surcharge kicks in above ₹50 lakh income: 10% (₹50L-1Cr), 15% (₹1Cr-2Cr), 25% (₹2Cr+, new regime cap), and 37% (above ₹5Cr, old regime only). Health and Education Cess of 4% applies on top.

Does it cover capital gains?

Include capital gains in your gross income figure. This calculator uses the standard slab structure; specific rates for LTCG/STCG on shares (10% / 15%) require separate treatment for accurate filing.

Calculators Tool

Income Tax Calculator India

Calculate income tax under both old and new regimes for FY 2025-26 with slabs, deductions, and surcharge.

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Financial year

Age group

Income source

Income details

Gross annual income (₹)

Total salary, business income, interest, rent, capital gains, and other taxable income before deductions.

Deductions (applied only to Old Regime)

Enter your investments and exemptions. The New Regime ignores most deductions but offers lower slab rates.

80C investments (₹)

EPF, PPF, ELSS, life insurance, home loan principal. Max ₹1,50,000.

80D health insurance (₹)

Self + family + parents premium. Max ₹1,00,000.

80CCD(1B) NPS (₹)

Additional NPS contribution. Max ₹50,000.

HRA exemption (₹)

Computed HRA exemption — least of three rules.

Home loan interest (₹)

Section 24(b). Max ₹2,00,000 for self-occupied house.

Other deductions (₹)

80E (education loan), 80G (donations), 80TTA, etc.

Recommended for you

New Regime saves ₹1,11,800 per year

Based on your inputs. Switch to the other regime any year by filing the appropriate ITR option — but business income filers should consult a CA before switching.

New Regime

₹0

Save more

Taxable income₹11,25,000

Total deductions₹75,000

Tax before cess₹0

Health & education cess (4%)₹0

Old Regime

₹1,11,800

Taxable income₹9,75,000

Total deductions₹2,25,000

Tax before cess₹1,07,500

Health & education cess (4%)₹4,300

Notes

Standard deduction in the New Regime is ₹75,000 for salaried taxpayers; Old Regime is ₹50,000.
Section 87A rebate makes income up to ₹12,00,000 effectively tax-free under the New Regime (FY 2025-26).
Surcharge applies on incomes above ₹50 lakh; the New Regime caps surcharge at 25%, the Old Regime can go up to 37%.
Health and Education Cess of 4% is added on top of tax plus surcharge.
This is an estimate for planning. It does not replace Form 16, AIS/TIS verification, or professional tax advice for filing.

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