Income tax calculator: old vs new regime

New regime (the default). Standard deduction of ₹75,000 on salary or pension. A rebate under section 87A of up to ₹60,000 makes the tax nil where total income is ₹12 lakh or less. Just above ₹12 lakh, marginal relief applies: the tax cannot be more than the income above ₹12 lakh. Most deductions are not allowed; the employer's NPS contribution under 80CCD(2) is, up to 14% of basic + DA.

Old regime. Standard deduction of ₹50,000, and the rebate under 87A of up to ₹12,500 where total income is ₹5 lakh or less. Deductions: 80C up to ₹1,50,000, 80D, HRA exemption, home-loan interest on a self-occupied house up to ₹2,00,000, own NPS under 80CCD(1B) up to ₹50,000, and 80CCD(2) up to 10% of basic + DA (14% for government employees).

Surcharge on the tax: 10% above ₹50 lakh, 15% above ₹1 crore and 25% above ₹2 crore. The old regime adds 37% above ₹5 crore; the new regime stops at 25%. Marginal relief applies at each threshold: crossing it cannot cost more in tax and surcharge than the income above it. Health and education cess of 4% is then added on tax plus surcharge.

Choosing the old regime. The new regime applies unless you opt out. With salary and no business income you choose each year in the return, filed by the due date. With business or professional income you opt out in Form 10-IEA, and can come back to the new regime only once.

What it leaves out. Capital gains, lottery and online-game winnings, virtual digital assets and other income taxed at special rates; senior citizens' higher basic exemption in the old regime; family pension and other less common deductions. Total income and tax are rounded to the nearest ₹10 (sections 288A and 288B).

FY 2026-27 onwards. For FY 2026-27, check the Finance Act 2026 figures — if unchanged, the same slabs apply. From 1 April 2026 the Income-tax Act, 2025 applies (tax year 2026-27 onwards); it renumbers the sections named here. The calculator shows FY 2026-27 with the FY 2025-26 figures, marked “assumed unchanged — verify”.

Not sure which suits you? Ask the AI, put it to a verified expert in Experts Q&A, or have Indtaxes file your return.