Finance
Income Tax Calculator
FY 2025-26 · AY 2026-27 — New vs Old Regime · Budget 2025 Slabs
New regime tax slabs at a glance
Plus 4% health & education cess on total tax. Section 87A rebate of ₹60,000 makes income up to ₹12L effectively zero-tax.
New vs old — which regime should you pick?
Your total deductions under 80C + HRA + home loan + 80D are below ₹2.5 lakh, or you don't have rent receipts, insurance premiums, or home loan interest to claim. The new regime's lower slab rates and ₹75,000 standard deduction already do the heavy lifting. Almost everyone earning under ₹12.75 lakh should pick new regime — zero tax without any paperwork.
You can claim ₹2.5 lakh or more in deductions. The typical threshold: ₹1.5L under 80C (EPF + ELSS + PPF) plus ₹1–2L in HRA exemption plus ₹25K under 80D health insurance. Salaried employees in metro cities paying high rent often cross this threshold. Use the sliders above to enter your actual deductions and compare — the verdict updates instantly.
Key deadlines for FY 2025-26
Filing mistakes that trigger notices
Not reporting FD interest
Banks report your FD interest to the income tax department via Form 26AS. Even if TDS was deducted, you must declare the full interest income in your ITR. Mismatches between 26AS and your filed return are flagged automatically.
Claiming 80C without proof
If you chose old regime and claimed 80C deductions, keep receipts and statements. Your employer may accept a declaration at the start of the year, but the income tax department can demand proof during assessment. Missing receipts for LIC premiums, ELSS investments, or PPF deposits are the most common triggers.
Wrong regime selected at filing
Salaried employees can switch every year, but the selection must be made at the time of filing — not retroactively. If you filed under new regime but had large deductions, you lose those benefits for that year. Always run both calculations (like this tool does) before submitting your ITR.
Can you switch between regimes?
Salaried employees: Yes, you can switch every financial year at the time of filing your ITR. No prior intimation to employer is needed — your employer may deduct TDS under one regime, but you can choose the other when filing.
Business / professional income: If you opted out of the new regime once, you cannot switch back. This restriction applies only to people with business or professional income under Section 44ADA / 44AD. Consult a CA before making this choice.
Related reading
Results are indicative based on Budget 2025 tax slabs as of FY 2025-26. Actual tax liability may vary based on surcharge, specific exemptions, and individual circumstances. This tool does not constitute tax advice — consult a CA or tax professional before filing your ITR.
Key Terms
Standard Deduction (New Regime)
A flat Rs 75,000 deduction from gross salary available to all salaried employees in FY 2025-26 — no documentation needed.
Section 87A Rebate
A tax rebate of up to Rs 60,000 under new regime that reduces your tax to zero if taxable income is at or below Rs 12 lakh.
Section 80C
Allows up to Rs 1.5 lakh deduction for EPF, PPF, ELSS, NSC, LIC premiums, home loan principal, tuition fees. Only under old regime.
HRA Exemption
House Rent Allowance exemption for salaried employees paying rent. Only available under old regime.
Assessment Year (AY)
The year in which you file ITR. FY 2025-26 income is filed in AY 2026-27. ITR deadline is typically July 31.