Old vs New Regime. Which saves you more?

A tool that calculates your income tax liability for the financial year 2025-26 (assessment year 2026-27) under both the Old Regime and New Regime. It shows slab-wise tax, surcharge, cess, rebate, and which regime saves you more.

Up to ₹4L: Nil. ₹4L–₹8L: 5%. ₹8L–₹12L: 10%. ₹12L–₹16L: 15%. ₹16L–₹20L: 20%. ₹20L–₹24L: 25%. Above ₹24L: 30%. Plus 4% cess. A rebate under Section 87A makes taxable income up to ₹12L tax-free.

Up to ₹2.5L: Nil. ₹2.5L–₹5L: 5%. ₹5L–₹10L: 20%. Above ₹10L: 30%. Plus 4% cess. A rebate under Section 87A makes taxable income up to ₹5L tax-free. Surcharge applies above ₹50L.

Up to ₹12.75L gross: New Regime usually wins (tax-free). ₹12.75L–₹15L with few deductions: New Regime. ₹15L+ with deductions above ₹3.5L: Old Regime may win. Above ₹50L: New Regime may win due to surcharge cap. Use this calculator with your numbers.

₹75,000 under the New Regime (raised from ₹50,000) and ₹50,000 under the Old Regime. This is available to salaried employees and pensioners, deducted from gross salary before computing taxable income.

Under the New Regime, if your taxable income is up to ₹12,00,000, the entire tax is rebated — up to ₹60,000. Since salaried employees get a ₹75,000 standard deduction, gross income up to ₹12.75L is effectively tax-free. Old Regime rebate limit is ₹5L.

Salaried employees without business income can switch every year at the time of filing. Business owners can switch only once (from Old to New), then stay in New Regime permanently. Choose carefully if you're a business owner.

80C (₹1.5L for EPF, PPF, ELSS, life insurance, home loan principal), 80D (health insurance up to ₹25K–₹1L), 80CCD(1B) (NPS ₹50K), 80E (education loan interest), 80G (donations), 80TTA (savings interest ₹10K), home loan interest (Sec 24b up to ₹2L), HRA exemption, and more.

Very few: standard deduction (₹75,000), employer NPS contribution (80CCD(2)), and a few allowances for specific professions. No 80C, 80D, HRA, or home loan interest deduction. That's the trade-off for lower tax rates.

Surcharge is an additional tax on high incomes. Old Regime: 10% above ₹50L, 15% above ₹1Cr, 25% above ₹2Cr, 37% above ₹5Cr. New Regime: capped at 25% max, with a 15% cap on most surcharge. Surcharge is applied before cess.

A 4% cess on the total of income tax plus surcharge. It applies under both regimes and funds health and education programs. There's no exemption or avoidance — it's always 4% of your tax liability.

Under the New Regime, yes — if your taxable income (after the ₹75,000 standard deduction) is up to ₹12L, the rebate under Section 87A makes your tax zero. For salaried employees, this means gross income up to ₹12.75L pays no income tax.

HRA exemption is only available under the Old Regime. It's the least of: actual HRA received, 50%/40% of basic (metro/non-metro), or rent paid minus 10% of basic. If you pay significant rent, Old Regime may win because of this.

Generally yes — choose the regime with lower total tax payable. But also consider non-tax factors: TDS deducted by employer, form 16, investment commitments (some 80C investments like ELSS have lock-in), and long-term financial goals.

Yes, but only the employer contribution under Section 80CCD(2) — up to 14% of basic salary for government employees and 10% for private sector. The individual NPS deduction (80CCD(1B) ₹50K) is not available under the New Regime.

Your employer estimates your annual income and deducts tax monthly based on your declared regime and investments. If you switch regimes mid-year, tell your employer so TDS is adjusted. Final tax is settled when filing your return.

All income is aggregated and taxed at slab rates. Include salary, freelance income, rental income (after 30% standard deduction), interest income, and capital gains. Different income types may have different rules — this calculator focuses on salary + other regular income.

Marginal relief ensures your tax doesn't jump disproportionately when income crosses a surcharge threshold. It caps the additional tax at the amount by which income exceeds the threshold. This calculator applies marginal relief automatically.

FY (Financial Year) is when you earn income, e.g., FY 2025-26 runs from 1 April 2025 to 31 March 2026. AY (Assessment Year) is when you file the return for that income, e.g., AY 2026-27 is when you file for FY 2025-26 income.

Only if you're choosing the Old Regime and actually want the underlying investment (EPF, PPF, ELSS). Don't invest just for tax — evaluate whether the investment aligns with your goals. Under the New Regime, 80C doesn't help at all.

Employers default to the New Regime unless you explicitly opt for Old Regime and submit investment declarations. Check your payslip and Form 16 for which regime TDS was computed under. You can change at filing time.

Yes — capital gains (short-term and long-term) are taxed at special rates regardless of regime. Equity LTCG above ₹1.25L is taxed at 12.5%, STCG at 20%. Property LTCG at 12.5% (with indexation removed in 2024). This calculator focuses on salary income.

Form 16 is the TDS certificate issued by your employer showing salary paid, deductions allowed, and tax deducted for the financial year. It's essential for filing your income tax return and reconciling with Form 26AS and AIS.

If you're choosing the Old Regime, yes — declare your 80C, 80D, and other investments so TDS is calculated correctly. This avoids a large tax payment at year-end. Under the New Regime, only NPS employer contribution matters.

You can still claim them when filing your return. The employer will have deducted excess TDS, but you'll get a refund when you file. Better to declare upfront so your monthly cash flow isn't affected.

No. Home loan interest deduction under Section 24(b) (up to ₹2L) is not available under the New Regime. If you have a significant home loan, this may tip the balance toward the Old Regime.

Under the New Regime, surcharge is capped at 25% (instead of 37% under Old Regime). Most surcharge rates are also reduced. This makes the New Regime relatively cheaper for very high incomes (above ₹2Cr).

This calculator reflects FY 2025-26 slabs, the ₹12L rebate under Section 87A, the ₹75,000 standard deduction, and current surcharge/cess rules. Slabs and rules are updated when the government announces changes.

No. Everything runs in your browser. Nothing is uploaded, tracked, or stored. If you want to keep a record, download the PDF or take a screenshot. Your financial data stays on your device.