Income Tax Calculator
Estimate your income tax liability.
Income & Deduction Details
Tax Comparison (Old vs New Regime)
Regime Breakdown Table
| Particulars | Old Regime | New Regime |
|---|
Tax Regime Comparison
The Finzorio Income Tax Calculator provides comprehensive tax planning for salaried employees, self-employed professionals, freelancers, and senior citizens in India. Compare your tax liability between the New Tax Regime (Section 115BAC) and the Old Tax Regime for Financial Year 2025-26 (Assessment Year 2026-27) with complete accuracy on standard deductions, Section 80C, 80D, 24(b), 87A rebate, and 4% Health & Education Cess.
Understanding New vs Old Income Tax Regimes in India
Under Indian income tax law, taxpayers can choose between two tax frameworks every financial year:
- New Tax Regime (Section 115BAC): The default tax regime offering lower tax slab rates across expanded income brackets. It includes a Standard Deduction of ₹75,000 for salaried employees and a full tax rebate under Section 87A for taxable incomes up to ₹7,000,000 (making income up to ₹7.75 Lakh completely tax-free). However, it disallows traditional deductions like 80C, 80D, and HRA.
- Old Tax Regime: Features higher slab rates but allows extensive tax exemptions including HRA (Section 10(13A)), Section 80C (up to ₹1.5L), Section 80D health insurance (up to ₹1L for self & parents), Home Loan interest (Section 24b up to ₹2L), and LTA.
Income Tax Slab Rates Comparison Matrix (FY 2025-26 / AY 2026-27)
Side-by-side comparison of tax slabs under New vs Old Tax Regimes:
| Taxable Income Slabs | New Tax Regime Rates (Sec 115BAC) | Old Tax Regime Rates (Below 60 Yrs) | Old Tax Regime (Senior Citizens 60-80 Yrs) |
|---|---|---|---|
| Up to ₹2,50,000 | Nil (Exempt) | Nil (Exempt) | Nil (Exempt) |
| ₹2,50,001 – ₹3,00,000 | Nil (Exempt) | 5% (Rebate u/s 87A if income ≤ ₹5L) | Nil (Exempt up to ₹3L) |
| ₹3,00,001 – ₹5,00,000 | 5% (Rebate u/s 87A) | 5% (Rebate u/s 87A) | 5% (Rebate u/s 87A) |
| ₹5,00,001 – ₹7,00,000 | 5% (Rebate u/s 87A up to ₹7.75L total) | 20% | 20% |
| ₹7,00,001 – ₹10,00,000 | 10% (from ₹7L to ₹10L) | 20% | 20% |
| ₹10,00,001 – ₹12,00,000 | 15% (from ₹10L to ₹12L) | 30% | 30% |
| ₹12,00,001 – ₹15,00,000 | 15% (from ₹12L to ₹15L) | 30% | 30% |
| Above ₹15,00,000 | 30% | 30% | 30% |
Key Tax Deductions & Exemptions Matrix
Summary of eligible tax deductions available under the Old Tax Regime:
| Section | Deduction Category | Max Deduction Cap | Eligible Instruments |
|---|---|---|---|
| Section 80C | Life Insurance, Provident Fund, ELSS | ₹1,50,000 / year | EPF, PPF, ELSS Mutual Funds, Term Insurance, Tax Saver FD, School Fees |
| Section 80D | Health Insurance Premium | Up to ₹1,00,000 | Self & Family: ₹25k (₹50k if senior). Senior Parents: ₹50k extra |
| Section 24(b) | Home Loan Interest (Self-occupied) | ₹2,00,000 / year | Interest paid on housing loan for self-occupied residential house |
| Section 80CCD(1B) | NPS Additional Contribution | ₹50,000 / year | National Pension System Tier-1 Account |
| Section 10(13A) | House Rent Allowance (HRA) | Actual Exempt Amount | Rent paid minus 10% basic salary (Metro/Non-metro rules apply) |
| Standard Deduction | Salaried & Pensioners | ₹75,000 (New) / ₹50,000 (Old) | Flat deduction available for all salaried employees |
Latest Income Tax Updates & Section 87A Rebate Rules
- Standard Deduction Increased to ₹75,000: Budget updates enhanced the flat Standard Deduction under New Tax Regime to ₹75,000.
- Section 87A Full Tax Rebate: Taxpayers with net taxable income up to ₹7,00,000 under the New Tax Regime get a full tax rebate of up to ₹25,000 (making income up to ₹7.75 Lakh with standard deduction completely tax-free).
- 4% Health & Education Cess: A mandatory 4% cess is levied on the total calculated tax amount across all income slabs.
- Surcharge Rates: High net-worth individuals pay surcharges: 10% (income > ₹50L), 15% (income > ₹1Cr), 25% (income > ₹2Cr under New Regime).
Worked Example: Old vs New Regime Comparison
1. New Tax Regime Calculation:
• Gross CTC = ₹12,00,000 - ₹75,000 Standard Deduction = ₹11,25,000 Taxable Income.
• Tax on ₹3L–₹7L (5%) = ₹20,000
• Tax on ₹7L–₹10L (10%) = ₹30,000
• Tax on ₹10L–₹11.25L (15%) = ₹18,750
• Subtotal Tax = ₹68,750 + 4% Cess (₹2,750) = ₹71,500 Total Tax.
2. Old Tax Regime Calculation:
• Gross CTC = ₹12,00,000 - ₹50k Std Ded - ₹1.5L 80C - ₹25k 80D - ₹1.5L HRA = ₹8,25,000 Taxable Income.
• Tax on ₹2.5L–₹5L (5%) = ₹12,500
• Tax on ₹5L–₹8.25L (20%) = ₹65,000
• Subtotal Tax = ₹77,500 + 4% Cess (₹3,100) = ₹80,600 Total Tax.
Result: New Tax Regime saves ₹9,100 in tax for this employee.