Old vs New Tax Regime Calculator

Under the new tax regime for FY 2025-26 (Budget 2025): Nil up to ₹4 lakh, 5% from ₹4–8 lakh, 10% from ₹8–12 lakh, 15% from ₹12–16 lakh, 20% from ₹16–20 lakh, 25% from ₹20–24 lakh, and 30% above ₹24 lakh. A Section 87A rebate of ₹60,000 means zero tax for income up to ₹12 lakh.

Yes, under the new tax regime. Budget 2025 raised the Section 87A rebate from ₹25,000 to ₹60,000 for new regime taxpayers. Combined with the revised slabs, this means a salaried individual with gross income up to ₹12,75,000 (accounting for the ₹75,000 standard deduction) pays zero income tax. The exact threshold is ₹12 lakh taxable income after the standard deduction.

It depends on your deductions. The new regime is simpler (fewer deductions but lower rates) and benefits most taxpayers with income below ₹12 lakh or those with minimal deductions. The old regime benefits those with high deductions: HRA, 80C investments (PPF, ELSS, LIC), home loan interest, 80D health premiums, and NPS contributions. Use this calculator to compare your specific situation.

Salaried individuals (no business income) can switch between regimes every year when filing their ITR. However, if you have business income, once you opt out of the new regime, you must wait 5 years before opting back in. The new regime is the default — you must explicitly declare to use the old regime.

Under the new regime for FY 2025-26, the main deductions available are: standard deduction of ₹75,000 (for salaried individuals), employer NPS contribution under Section 80CCD(2), and gratuity/leave encashment exemptions. Most common deductions like 80C, 80D, HRA, home loan interest (Section 24b), and LTA are not available.

No. This calculator covers salary/profession income only. Capital gains (STCG at 20%, LTCG at 12.5%) and crypto/VDA income (30%) are taxed at special flat rates and need to be reported separately in Schedule CG or Schedule VDA of ITR-2. The Section 87A rebate under the new regime also does not apply to special-rate income.