India Income Tax Regime Calculator

Tax Slab Comparison (FY 2025–26)

Effective Tax Rate

01

Income Tax Slabs FY 2025–26

Income tax is calculated progressively. Only the portion of taxable income within a slab is charged at that slab’s rate.

• The Old Regime retains a familiar slab structure and allows eligible deductions and exemptions.
• The New Regime uses revised slabs with fewer deductions and may be simpler for many taxpayers.
• Health and Education Cess is added after the basic income-tax calculation.
• Special-rate income, surcharge and marginal relief require separate treatment.

02

Old vs. New Regime — Detailed Comparison

The better regime depends on the relationship between your taxable income and the deductions or exemptions you can legitimately claim.

• Compare both regimes using complete annual figures, not only headline slab rates.
• The Old Regime may benefit taxpayers with substantial eligible deductions, HRA or home-loan treatment.
• The New Regime may produce a lower liability where deductions are limited.
• Recalculate after salary, rent, investments or tax rules change.

03

Deductions You Should Know

Eligible deductions reduce taxable income under the regime and conditions where they are permitted.

• Section 80C can include eligible investments and payments within the statutory ceiling.
• Section 80D may cover qualifying medical-insurance premiums and specified health expenses.
• HRA exemption depends on salary, rent, residence and supporting evidence.
• Never enter a deduction without confirming eligibility and retaining documentation.

04

How Income Tax Is Calculated

The calculation starts with gross income, applies permitted exclusions and deductions, then calculates tax slab by slab.

• Combine taxable salary and other applicable income sources.
• Subtract the standard deduction and other permitted amounts for the selected regime.
• Apply the relevant slab rates, rebate, surcharge and marginal-relief rules.
• Add cess and subtract eligible prepaid taxes to estimate the final amount payable or refundable.

05

Rebate under Section 87A

Section 87A can reduce income tax for eligible resident individuals whose taxable income falls within the applicable limit.

• Eligibility and the maximum rebate depend on the selected regime and assessment year.
• The rebate applies to tax, not directly to gross income.
• Certain special-rate income may not receive the same treatment.
• Confirm the current threshold before filing because budget provisions can change.

06

HRA and Old Regime Exemptions

HRA exemption is generally relevant under the Old Regime and is based on the least of specified salary-and-rent calculations.

• Maintain rent receipts and landlord information where required.
• Metro and non-metro calculations can use different salary percentages.
• The exemption cannot exceed the HRA actually received.
• Owning a home does not automatically prevent HRA relief, but the facts must support the claim.

07

Tax-Saving Investments

Tax-saving decisions should support your financial goals first; the tax deduction is a secondary benefit.

• Compare lock-in, liquidity, risk, charges and expected return before investing.
• Eligible options can include specified provident funds, insurance premiums, tuition fees and notified investments.
• Do not invest solely to exhaust a deduction ceiling.
• Check whether the selected tax regime permits the deduction.

08

Budget 2025 Highlights

Budget changes can alter slabs, rebates, standard deductions and compliance rules. This calculator uses the assumptions labelled FY 2025–26.

• Use the financial-year selector and confirm that it matches the income period.
• Separate announcements from provisions that are enacted and effective.
• Employer payroll estimates can differ until declarations and proofs are reconciled.
• Review official Income Tax Department guidance before filing.