Income Tax Calculator

Calculate Indian income tax under the new and old regime for FY 2025-26. Compare tax liability, cess, and effective tax rate.

Income Tax Calculation

New Regime (FY 2025-26): Standard deduction ₹75,000. Slabs: 0-4L: nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, above 24L: 30%. Rebate up to ₹12L.

Old Regime: Allows deductions under 80C, 80D, HRA etc.

Frequently Asked Questions

What is the new tax regime?

The new tax regime (default from FY 2023-24) offers lower tax rates with fewer slabs but does not allow most deductions and exemptions like 80C, HRA, etc. It includes a standard deduction of ₹75,000.

Which is better — old or new regime?

If your total deductions (80C, HRA, 80D, etc.) exceed approximately ₹3-4 lakh, the old regime may save more tax. Otherwise, the new regime with its lower rates is typically better.

What is the rebate under Section 87A?

Under the new regime, if your taxable income is up to ₹12 lakh (after standard deduction), you get a full rebate and pay zero tax. Under the old regime, the rebate applies up to ₹5 lakh.

What is the 4% cess?

A Health and Education Cess of 4% is levied on the total tax amount (after rebate). This cess funds healthcare and education initiatives.