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Finance / India Tax
Estimate your annual income tax liability in India for FY 2025-26 under either the new or old tax regime.
Tax is computed in four steps, for FY 2025-26 (AY 2026-27). First, a standard deduction is subtracted from gross income to get taxable income — ₹75,000 under the new regime, ₹50,000 under the old regime. Second, the regime's slab rates are applied cumulatively to that taxable income (the new regime's slabs run 0% up to ₹4L, then 5/10/15/20/25/30% in ₹4L bands to ₹24L and beyond; the old regime's slabs run 0% to ₹2.5L, then 5/20/30%). Third, the Section 87A rebate zeroes out the tax entirely if taxable income is at or below ₹12,00,000 (new regime) or ₹5,00,000 (old regime) — this is a full rebate of tax payable, not a change to the slabs themselves. Fourth, a 4% Health & Education Cess is added on top of whatever tax remains after the rebate. Key simplifications stated explicitly: the surcharge that applies above ₹50 lakh of income is not modeled; no deductions (Section 80C, HRA, home loan interest, etc.) are subtracted before computing tax — this calculator taxes gross income directly under the chosen regime's standard deduction only, so old-regime users who claim other deductions will owe less in practice than shown here; and these figures reflect FY 2025-26 rules, which change with each Union Budget.
Neither by default — you choose. Move the regime slider to compare; the new regime is the default option since it's the default regime for most taxpayers who don't actively opt for the old one.
No. The surcharge that applies to income above ₹50 lakh (rising in steps for very high incomes) is not modeled — a stated simplification. Above that threshold, actual liability will be higher than shown here.
The old regime's Section 87A rebate only zeroes out tax up to ₹5,00,000 of taxable income, versus ₹12,00,000 under the new regime. At ₹10L gross income the old regime is well past its rebate cutoff while the new regime isn't — though the old regime can claw back ground once deductions like Section 80C and HRA are claimed, which this calculator doesn't subtract.