Income Tax Calculator India - FY 2025-26
This calculator compares both tax regimes so you can choose the one that saves you the most.
New Regime (Default): Lower tax rates but most deductions (80C, 80D, HRA) are not available. Only standard deduction of ₹75,000 is allowed.
Old Regime: Higher tax rates but you can claim deductions under 80C (up to ₹1.5L), 80D (health insurance), HRA, NPS, home loan interest, and more.
Related: SIP Calculator | PPF Calculator | EPF Calculator
How to Use This Calculator
Start by entering your annual salary — for example, 12,00,000 if you earn 1 lakh per month. Then choose either the New Regime (lower rates, fewer deductions) or Old Regime (higher rates, more deductions). If you select Old Regime, fill in your 80C deductions like PPF or ELSS investments (up to 1.5 lakh), 80D health insurance premiums, HRA exemption if you live in rented accommodation, and NPS contributions. Click 'Calculate Tax' and the tool instantly compares both regimes side by side, showing exactly how much tax you'd pay under each plan.
When to Use This Calculator
Use this calculator right at the start of the financial year (April) to plan your tax-saving investments proactively. It's also essential during salary negotiation — when you get a new job offer, enter the proposed CTC to estimate your in-hand salary after taxes. Tax filing season (July-September) is another critical time to use it, especially if you've had changes in income or investments mid-year. Freelancers and consultants with variable income can run multiple scenarios to set aside the right amount for taxes throughout the year.
How to Interpret Your Results
Say you enter an annual salary of 15,00,000 with 1.5 lakh in 80C deductions and 25,000 in 80D. Under the New Regime, your tax would be approximately 1,17,000 after the standard deduction of 75,000. Under the Old Regime, after all deductions your taxable income drops to about 11,75,000, resulting in tax of roughly 1,23,750. The calculator highlights which regime saves you more and shows your monthly in-hand salary. If you maximize deductions including NPS, the Old Regime might come out ahead by several thousand rupees.
Frequently Asked Questions
Which tax regime is better for salaried employees in 2025-26?
It really depends on your deductions. If you have significant 80C investments (PPF, ELSS, EPF), 80D health insurance premiums, HRA, home loan interest, and NPS contributions totaling over 3-4 lakh, the Old Regime may still be better despite the higher rates. However, for most salaried employees with limited deductions under 2 lakh, the New Regime's lower slab rates make it the clear winner. The standard deduction of 75,000 is available in both regimes from FY 2025-26.
What deductions can I claim under Section 80C?
Section 80C allows deductions of up to Rs. 1.5 lakh per year from your taxable income. Eligible investments include PPF (Public Provident Fund), EPF (Employee Provident Fund), ELSS (Equity Linked Savings Scheme with 3-year lock-in), tax-saving fixed deposits (5-year lock-in), National Savings Certificate (NSC), life insurance premiums, Sukanya Samriddhi Yojana, and tuition fees for up to two children. For optimal tax planning, combine ELSS for equity exposure with PPF for debt stability within your 80C allocation.
How is HRA exemption calculated?
House Rent Allowance (HRA) exemption is the minimum of three amounts: actual HRA received from your employer, actual rent paid minus 10% of basic salary (for metro cities like Delhi/Mumbai), or 50% of basic salary for metro cities (40% for non-metros). For example, with a basic salary of Rs. 50,000/month, HRA of Rs. 25,000, and rent of Rs. 20,000 in Mumbai, the exemption = min(25,000, 20,000 - 5,000, 25,000) = Rs. 15,000/month. You can claim this only under the Old Tax Regime.
What is the standard deduction and who can claim it?
The standard deduction is a flat deduction from your gross salary, introduced to replace the transport allowance and medical reimbursement. For FY 2025-26, the standard deduction is Rs. 75,000 and is available to all salaried individuals and pensioners under both the Old and New Tax Regimes. Unlike Section 80C deductions, you do not need to invest or spend any money to claim the standard deduction — it is automatically applied to your salary income, reducing your taxable income directly.
How do capital gains affect my total tax liability?
Capital gains are taxed separately from your salary income. Short-term capital gains (assets held under 12-24 months depending on type) are added to your income and taxed at your applicable income tax slab rate. Long-term capital gains on equities over Rs. 1 lakh are taxed at 10% without indexation, while long-term gains on other assets are taxed at 20% with indexation benefit. These gains can push you into a higher tax bracket, so plan asset sales across financial years to minimize the overall tax impact.