Free Tool
India Income Tax Calculator
Use this free calculator to estimate your India income tax for Financial Year 2025-2026 (Assessment Year 2026-2027). Compare the new tax regime (with 6 slabs and standard deduction) against the old tax regime (with Section 80C, 80D, and HRA deductions).
This calculator uses official Income Tax Department slabs and the standard deduction of ₹75,000 for FY 2025-2026. Results are estimates and should be verified with a chartered accountant or the Income Tax Department.
Calculate Your India Income Tax
India Tax System Overview
India's financial year runs from April 1 to March 31. For FY 2025-2026 (April 1, 2025 to March 31, 2026), taxpayers can choose between the new tax regime (default, with lower rates but fewer deductions) or the old tax regime (with higher rates but Section 80C, 80D, HRA, and other deductions).
New Tax Regime (FY 2025-2026)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard Deduction: ₹75,000 (available in new regime for salaried individuals)
Old Tax Regime (FY 2025-2026)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Available Deductions: Section 80C (₹1,50,000), Section 80D (₹25,000-₹50,000), HRA, LTA, home loan interest, and more.
Key Deductions (Old Regime)
- Section 80C: Up to ₹1,50,000 for PPF, ELSS, EPF, life insurance, NSC, tuition fees, principal repayment on home loan
- Section 80D: Health insurance premiums up to ₹25,000 (₹50,000 for senior citizens)
- HRA (House Rent Allowance): Exempt based on actual HRA received, rent paid, and salary
- Section 80CCD(1B): Additional ₹50,000 for NPS contributions
- Section 24(b): Home loan interest up to ₹2,00,000 for self-occupied property
Which Regime Should You Choose?
The new regime generally benefits those with income above ₹15,00,000 or those who don't claim many deductions. The old regime is better for those who maximize Section 80C, 80D, HRA, and home loan deductions. You can switch between regimes annually when filing your ITR.
Filing Your ITR
Income Tax Returns for FY 2025-2026 are due by July 31, 2026 for individuals not requiring audit. File through:
- Income Tax e-Filing Portal
- A chartered accountant
- Compatible tax software
For more details, visit the Income Tax Department or use the official ITR selection tool.
Choosing Between New and Old Tax Regimes
One of the most important decisions for Indian taxpayers is choosing between the new tax regime (default since FY 2023-2024) and the old tax regime with deductions. Here's a detailed comparison to help you decide:
When the New Regime is Better
The new regime generally benefits individuals with annual income above ₹15,00,000 who don't claim many deductions. If you don't have home loan interest, don't max out Section 80C investments, and don't claim HRA, the new regime's lower rates (especially the 15% and 20% middle brackets) usually result in lower overall tax. Additionally, salaried employees can claim a standard deduction of ₹75,000 in the new regime, which partially compensates for lost deduction opportunities.
When the Old Regime is Better
The old regime is preferable for individuals who maximize tax-saving investments. If you contribute ₹1,50,000 to PPF/ELSS/EPF (Section 80C), pay health insurance premiums (Section 80D), have home loan interest deductions (Section 24), and claim HRA exemption, the combined benefit often exceeds the new regime's rate advantage. Middle-income earners (₹8,00,000 to ₹15,00,000) with disciplined saving habits typically save more under the old regime.
New Regime Deductions Still Available
Important note: The new regime does NOT eliminate all deductions. You can still claim the standard deduction (₹75,000 for salaried, ₹50,000 for pensioners), employer NPS contributions (Section 80CCD(2)), and deductions under Section 80CCD(1B) for voluntary NPS contributions up to ₹50,000. You also retain exemptions for leave encashment, gratuity, and VRS proceeds.
Annual Choice and Planning
Salaried employees can switch between regimes annually when filing their ITR, giving you flexibility. However, business owners and professionals who opt for the new regime cannot switch back to the old regime. This makes the decision more critical for self-employed individuals. Most tax experts recommend modeling your taxes under both regimes before deciding, especially if your income or investment patterns change year to year.
For official guidance on regime selection, visit the Income Tax Department's regime comparison tool.