Income Tax Calculator
Compare Old vs New Tax Regimes for FY 2025-26 and plan your investments to save maximum tax.
Tax Details
Old Regime Deductions
New Tax Regime
Taxable Income: ₹11,25,000
Old Tax Regime
Taxable Income: ₹9,75,000
Potential Savings
You save ₹40,300 by choosing the New Regime.
Tax Comparison Chart
Tax Planning Insights
Standard Deduction
Standard Deduction for New Regime is ₹75,000. For Old Regime, it remains ₹50,000.
Rebate u/s 87A
In the New Regime, income up to ₹7 Lakhs is tax-free due to rebate. In the Old Regime, this limit is ₹5 Lakhs.
Old vs New Tax Regime: Which is better?
Choosing between the Old and New Tax Regimes depends heavily on your investment habits and eligible deductions. Here's a quick guide to help you decide.
Old Tax Regime
Best if you have high investments in 80C (PPF, ELSS), pay high house rent (HRA), or have a home loan (Section 24b). It allows you to reduce your taxable income significantly.
New Tax Regime
Best if you want lower tax rates and don't want the hassle of managing investment proofs. It offers higher rebate limits and lower tax slabs but removes most deductions.
New Tax Slabs (FY 2025-26 & FY 2024-25)
| Income Slab | Tax Rate |
|---|---|
| ₹0 - ₹3,00,000 | Nil |
| ₹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% |
Frequently Asked Questions
What is the Standard Deduction for FY 2025-26?
For the New Tax Regime, the standard deduction is ₹75,000. For the Old Tax Regime, it remains at ₹50,000.
Can I switch between Old and New regimes every year?
Salaried individuals can choose between the two regimes every year at the time of filing their ITR. However, individuals with business income can only switch once in their lifetime.
Is there any tax on income up to ₹7 Lakhs in the New Regime?
Yes, technically there is tax, but due to the rebate under Section 87A, the net tax payable becomes zero for taxable income up to ₹7 Lakhs.
What are the common deductions available in the Old Regime?
Common deductions include Section 80C (up to ₹1.5L), 80D (Health Insurance), HRA (House Rent Allowance), and Section 24b (Home Loan Interest up to ₹2L).