An income tax calculator instantly computes how much tax you owe for FY 2025-26 under both the New and Old Tax Regimes — so you can choose the one that saves you the most money. Every salaried employee and self-employed individual in India must file an Income Tax Return (ITR) annually. For FY 2025-26 (Assessment Year 2026-27), you have the choice between the New Tax Regime (default) and the Old Tax Regime. Choosing the wrong regime could mean paying thousands of rupees more in tax than necessary.
This guide explains both regimes in plain language, shows exactly how much tax you would pay at different salary levels, lists all major deductions available under the old regime, and helps you decide which regime is right for your situation.
Calculate Your Income Tax — New vs Old Regime
Enter your salary and deductions to instantly compare tax under both regimes for FY 2025-26. Find out which saves you more money.
Income Tax Slabs FY 2025-26 — New Regime vs Old Regime
India has two tax regimes as of FY 2025-26. The new regime is now the default — if you do not specify, you will be taxed under it.
New Tax Regime Slabs (FY 2025-26)
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Key benefit: Section 87A rebate — income up to ₹7 lakh = zero tax under the new regime. Standard deduction of ₹75,000 for salaried employees.
Old Tax Regime Slabs (FY 2025-26)
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Key benefit: Allows deductions under Section 80C (₹1.5L), 80D, HRA, LTA, and more — which can significantly reduce taxable income. Add 4% Health & Education Cess on top of base tax in both regimes.
New vs Old Regime — Which Is Better for You?
The answer depends on how much you invest in tax-saving instruments. Here is the tax comparison at various salary levels:
| Gross Salary | Old Regime Tax* | New Regime Tax* | Better Regime |
|---|---|---|---|
| ₹5,00,000 | ₹0 (87A rebate) | ₹0 (87A rebate) | Equal |
| ₹8,00,000 | ₹46,800 | ₹31,200 | New |
| ₹10,00,000 | ₹75,400 | ₹54,600 | New |
| ₹12,00,000 | ₹1,09,200 | ₹83,200 | New |
| ₹15,00,000 | ₹1,48,200† | ₹1,30,000 | New/Old (close) |
| ₹20,00,000 | ₹2,34,000† | ₹2,73,000 | Old |
*Approximate. Old regime assumes full 80C (₹1.5L), standard deduction ₹50K. New regime assumes standard deduction ₹75K. †Old regime saves more at higher incomes with maximum deductions claimed.
Simple decision rule
- Income below ₹7L: New regime — zero tax due to 87A rebate
- Income ₹7L–₹15L: Calculate both — new regime often wins unless you have high deductions (home loan, HRA, full 80C)
- Income above ₹15L with maximum deductions: Old regime may save more
Section 80C and Other Deductions (Old Regime)
The old tax regime allows numerous deductions that can significantly reduce your taxable income. The most important is Section 80C:
Section 80C — ₹1.5 Lakh limit (most popular)
- EPF/PF contributions — automatically deducted from salary
- PPF (Public Provident Fund) — 7.1% interest, 15-year lock-in, EEE status
- ELSS Mutual Funds — 3-year lock-in, market-linked returns (highest return potential)
- NSC (National Savings Certificate) — 7.7% interest, 5-year lock-in
- LIC Premium — life insurance premium paid
- Children's school tuition fees — up to 2 children
- Home loan principal repayment
- 5-year bank FD — tax-saver FDs at ~6.5–7%
Other key deductions
- Section 80D: Health insurance premium — ₹25,000 (self + family), ₹50,000 for senior citizen parents
- HRA Exemption: House Rent Allowance — actual rent paid minus 10% of basic salary (complex formula, use calculator)
- Standard Deduction: ₹50,000 flat for salaried employees under old regime
- Section 80E: Interest on education loan — full deduction, 8 years
- Section 24(b): Home loan interest — up to ₹2 lakh/year
ITR Filing — Deadlines, Forms, and How to File
Every taxpayer must file an ITR by the due date to avoid penalties and interest.
ITR Filing Deadlines (FY 2025-26 / AY 2026-27)
- July 31, 2026 — For salaried individuals and non-audit cases (original deadline)
- October 31, 2026 — For audit cases (businesses/professionals)
- December 31, 2026 — Belated return (with penalty)
Which ITR form to use?
| ITR Form | Who Should File |
|---|---|
| ITR-1 (Sahaj) | Salaried individuals, income up to ₹50L, one house property |
| ITR-2 | Individuals with capital gains or more than one property |
| ITR-3 | Business/profession income (freelancers, consultants) |
| ITR-4 (Sugam) | Presumptive income scheme (44AD/44ADA) |
What is Form 16?
Form 16 is issued by your employer by June 15 each year. It is the TDS certificate showing your salary, all deductions claimed, and tax deducted at source. Part A shows TDS details; Part B shows your salary breakdown and deductions. Most salaried employees can file ITR-1 using only Form 16 and their AIS (Annual Information Statement) from the Income Tax portal.
How to Use the Tool (Step by Step)
- 1
Enter your gross annual salary
Open the Income Tax Calculator and enter your CTC or gross annual salary. Include all components: basic, HRA, special allowance, bonus.
- 2
Enter deductions (old regime)
If comparing old regime: enter your Section 80C investments, HRA paid, health insurance premium, home loan interest, and other deductions.
- 3
Compare both regimes
The calculator shows tax under both regimes side by side. Note which regime gives you lower tax for your specific situation.
- 4
Inform your employer
At the start of the financial year (April), declare your chosen regime to your employer so they deduct correct TDS from your salary each month.
- 5
File ITR by July 31
Visit incometax.gov.in, log in with PAN/Aadhaar, pre-fill from AIS, verify using Form 16, and e-verify using Aadhaar OTP. Takes 15–30 minutes for salaried employees.
Frequently Asked Questions
Which tax regime is better for salaried employees in 2025-26?+−
For income below ₹7L: new regime wins (zero tax due to 87A rebate). For income ₹7L–₹15L: calculate both — new regime typically wins if you claim less than ₹2–3L in deductions. For income above ₹15L with maximum 80C + HRA + home loan: old regime may save more. Use our calculator to compare your exact figures.
How do I calculate income tax on my salary?+−
Step 1: Calculate gross salary. Step 2: Subtract standard deduction (₹75K new regime / ₹50K old regime). Step 3: Subtract applicable deductions (only old regime). Step 4: Apply tax slabs to remaining taxable income. Step 5: Subtract 87A rebate if applicable. Step 6: Add 4% health & education cess.
What is Section 80C and what can I invest in?+−
Section 80C allows deductions up to ₹1.5 lakh per year for specified investments and expenses: EPF/PPF contributions, ELSS mutual funds, LIC premiums, NSC, 5-year tax saver FD, children's tuition fees, home loan principal. Available only under the old tax regime.
What is the standard deduction for FY 2025-26?+−
For the new tax regime: ₹75,000 standard deduction for salaried employees (increased from ₹50,000 in Budget 2024). For the old tax regime: ₹50,000. This is a flat deduction from your gross salary — no proof required.
What is the ITR filing deadline for FY 2025-26?+−
July 31, 2026 is the last date to file ITR for FY 2025-26 (AY 2026-27) for salaried individuals without audit. Filing after this deadline incurs a late fee of ₹5,000 (₹1,000 if income is below ₹5 lakh). Belated returns can be filed until December 31, 2026.
Calculate Your Income Tax — New vs Old Regime
Enter your salary and deductions to instantly compare tax under both regimes for FY 2025-26. Find out which saves you more money.
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