Income Tax Calculator (India)
Compare Old vs. New Tax Regimes for FY 2025-26 & 2024-25.
Only applicable for the Old Regime.
Old Tax Regime
Gross Income: ₹0
Deductions: ₹0
Taxable Income: ₹0
Income Tax: ₹0
New Tax Regime (Default)
Gross Income: ₹0
Deductions: Not Applicable
Taxable Income: ₹0
Income Tax: ₹0
Choosing Between Tax Regimes
Since FY 2020-21, taxpayers in India have the option to choose between two tax regimes. The New Tax Regime offers lower tax rates but requires forgoing most deductions and exemptions. The Old Tax Regime has higher tax rates but allows you to claim various deductions like HRA, LTA, and those under Section 80C, 80D, etc.
Who Should Choose Which Regime?
- Old Regime: Generally beneficial for individuals who make significant investments in tax-saving instruments (like PF, PPF, ELSS, life insurance) and have other exemptions like HRA.
- New Regime: Often better for those with lower incomes or who do not utilize many tax deductions. It offers a simpler, more straightforward calculation. As of FY 2023-24, the New Regime is the default option.
Key Update for FY 2025-26
The New Tax Regime for FY 2025-26 includes a standard deduction of ₹75,000 for salaried individuals and pensioners, and the tax rebate under section 87A has been significantly increased. Individuals with a taxable income up to ₹12,00,000 pay zero tax under the new regime for this financial year.