Income Tax Calculator

India's income tax system for individuals operates through two parallel regimes since FY 2020-21: the Old Tax Regime (with deductions) and the New Tax Regime (lower slab rates, minimal deductions). From FY 2023-24, the new regime is the default — you must explicitly opt out to use the old regime.

New Regime Highlights (FY 2025-26)

• •Zero tax up to ₹7,00,000 income (including standard deduction of ₹75,000)
• •Standard deduction of ₹75,000 for salaried employees (raised from ₹50,000 in Budget 2024)
• •Six slabs: NIL → 5% → 10% → 15% → 20% → 30%
• •Maximum surcharge capped at 25% (vs 37% in old regime)
• •No deductions for 80C, 80D, HRA, home loan interest

When Old Regime Saves More Tax

The old regime benefits you when your total deductions are large. Common scenarios where old regime wins:

• →Home loan with significant interest (₹2L+ per year)
• →HRA in metro cities (Mumbai, Delhi, Bengaluru)
• →Maximised 80C (₹1.5L) + 80D (₹25–50K) + NPS 80CCD(1B) (₹50K)
• →Income above ₹15L with all deductions fully utilised

Section 87A Rebate — No Tax Up to ₹7 Lakh

Under the new regime, if your total taxable income (after standard deduction) does not exceed ₹7,00,000, you pay zero income tax — even if the computed slab tax exceeds zero. This effectively makes the new regime tax-free for most salaried Indians earning under ₹7.75 lakh gross.

Surcharge and Cess

Surcharge applies when income exceeds ₹50 lakh. Additionally, a 4% Health & Education Cess is charged on (income tax + surcharge) for all taxpayers. Our calculator includes both in the final tax figure.