Compare Old vs New tax regime instantly. See which saves you more — and your exact monthly take-home.
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New Regime saves you ₹18,500
With your deduction level, the new regime results in lower tax. Switch to new regime this year.
Income Tax FAQs — FY 2025-26
Which tax regime is better — old or new in India?
It depends on your deductions. If you invest ₹1.5L in 80C, have health insurance (80D), and claim HRA, the old regime is often better up to ₹15–18L income. Above that, or if you have minimal deductions, the new regime usually wins. Use this calculator to compare both for your exact situation.
What are the income tax slabs for FY 2025-26 under the new regime?
New regime FY 2025-26: 0% up to ₹4L · 5% for ₹4–8L · 10% for ₹8–12L · 15% for ₹12–16L · 20% for ₹16–20L · 25% for ₹20–24L · 30% above ₹24L. Standard deduction of ₹75,000 applies. Net taxable income up to ₹12L is tax-free due to Section 87A rebate (₹12.75L gross with standard deduction).
Is income up to ₹12 lakh truly tax-free in 2025-26?
Yes, under the new tax regime for FY 2025-26, taxpayers with net taxable income up to ₹12 lakh receive a full rebate under Section 87A, making the effective tax zero. With the ₹75,000 standard deduction, this means gross salary up to ₹12,75,000 pays no income tax.
What deductions are allowed in the old tax regime?
The old regime allows: Section 80C (up to ₹1.5L — PPF, ELSS, EPF, LIC, home loan principal, tuition fees), 80D (₹25K health insurance; ₹50K for senior citizens), HRA exemption, home loan interest under Section 24b (up to ₹2L), standard deduction of ₹50K, 80CCD(1B) for NPS (₹50K additional), leave travel allowance, and more.
What is standard deduction for salaried employees in India?
Salaried employees get ₹75,000 standard deduction under the new regime and ₹50,000 under the old regime for FY 2025-26. No proof or investment is needed — it's automatically subtracted from gross salary before calculating your tax.
How is income tax calculated on salary in India?
Step 1: Start with gross annual salary. Step 2: Subtract standard deduction (₹75K new / ₹50K old) and eligible deductions (80C, 80D, HRA in old regime). Step 3: Apply tax slabs to get base income tax. Step 4: Check if Section 87A rebate applies. Step 5: Add 4% Health & Education Cess on the tax amount. The result is your total tax payable for the year.
Can I switch between old and new tax regime every year?
Salaried employees with no business income can switch between the old and new regime every year when filing their ITR. Those with business income can switch to the old regime only once and cannot switch back. The new regime is now the default — you need to actively opt into the old regime when filing.