Your Income Details
Old Regime Deductions
These deductions only apply in the old regime. The new regime uses ₹75,000 standard deduction only.
Total old regime deductions
₹2,25,000
(₹50K std + 80C + 80D + HRA + HLI + NPS)
Best regime for you
New Regime saves more
Lower slab rates, no deductions needed
Annual savings
₹0
New Regime
FY 2025-26 · Budget 2025
Old Regime
FY 2025-26
Tax vs Take-Home Comparison
New Regime Slabs (FY 2025-26)
| Income Slab | Rate |
|---|---|
| Up to ₹3,00,000 | 0% |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
Old Regime Slabs (FY 2025-26)
| Income Slab | Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
What is Income Tax?
Income tax is a direct tax levied by the Government of India on the income earned by individuals, HUFs, and businesses in a financial year (April to March). It is governed by the Income Tax Act, 1961, and administered by the Central Board of Direct Taxes (CBDT).
India uses a slab-based progressive tax system — higher income attracts higher rates. This means only the income in a particular slab is taxed at that rate, not your entire income.
Financial Year vs Assessment Year
Income earned in FY 2025-26 (April 2025 – March 2026) is filed and assessed in AY 2026-27. Always check which FY your income falls in before calculating tax.
New vs Old Regime — Which to Choose?
Choose New Regime if…
You have fewer deductions (no home loan, minimal 80C investments), or your income is ≤ ₹12.75L (zero tax benefit), or you prefer simplicity without tracking deductions.
Choose Old Regime if…
You have significant deductions — home loan interest (₹2L), 80C (₹1.5L), HRA, NPS (₹50K), 80D (₹25K). If total deductions exceed ₹4–5L, old regime likely saves more tax.
Rule of thumb
Add up all your eligible deductions. If they exceed the "break-even deduction" for your income level, old regime wins. Use the calculator above to find your exact savings.
Income Tax Example Calculations
Key Deductions Guide (Old Regime)
* None of the above (except standard deduction) are available under the new regime.
Budget 2025 Key Tax Changes
- →Zero tax up to ₹12 lakh — the 87A rebate in the new regime was enhanced so that anyone with income up to ₹12L pays zero tax. The previous limit was ₹7L.
- →New slab structure — 5 slabs up to ₹15L with rates 5%, 10%, 15%, 20%, and 30% above ₹15L. More progressive than the old 3-slab system.
- →Standard deduction ₹75,000 — increased from ₹50,000 for salaried employees and pensioners in the new regime.
- →New regime is now default — if you don't file Form 10-IEA, the new regime is automatically applied for non-business individuals.
Surcharge on High Incomes
* After surcharge, 4% Health & Education Cess applies on (tax + surcharge) for all.
Frequently Asked Questions
Common questions about income tax in India for FY 2025-26