Calculate your income tax for FY 2026-27, FY 2025-26, or FY 2024-25 under the New or Old Tax Regime - free, instant, no signup required.
Income tax is a direct tax levied by the Government of India on the income earned by individuals, Hindu Undivided Families (HUFs), companies, and other entities during a financial year. For individuals, income tax is calculated based on a slab system - different portions of income are taxed at progressively higher rates. The Income Tax Act, 1961 governs the rules, exemptions, and deductions applicable to income tax in India.
For FY 2026-27 (AY 2027-28), FY 2025-26 (AY 2026-27) and FY 2024-25 (AY 2025-26), taxpayers can choose between two tax regimes: the New Tax Regime (introduced in 2020 and made the default from FY 2023-24) and the Old Tax Regime. Each regime has its own slab rates and deduction rules. Use the Financial Year dropdown above to switch between years - Budget 2025 revised the new-regime slabs starting FY 2025-26.
The new regime is the default option. It offers lower tax rates but does not allow most deductions and exemptions. A standard deduction of ₹75,000 is available for salaried individuals and pensioners. Under the revised Budget 2025 structure, rebate under Section 87A applies if taxable income is up to ₹12,00,000 - effectively making salaried income up to ₹12.75 lakh tax-free.
For FY 2024-25, the new regime followed the pre-Budget-2025 slab structure. Standard deduction was ₹75,000 and the Section 87A rebate threshold was taxable income up to ₹7,00,000.
The old regime allows a wide range of deductions (Section 80C, 80D, HRA, LTA, home loan interest, etc.) and exemptions, which can significantly reduce taxable income. A standard deduction of ₹50,000 is available for salaried individuals. The basic exemption limit varies by age group.
A 4% Health and Education Cess is levied on the total income tax liability (before any rebate under Section 87A but after tax on base income). This cess applies uniformly to all taxpayers and is used to fund government health and education initiatives.
Section 87A provides a rebate that effectively makes your tax liability zero if your taxable income is within the threshold. Under the New Regime, the rebate applies if taxable income does not exceed ₹12,00,000 for FY 2025-26 and FY 2026-27 (raised from ₹7,00,000 in FY 2024-25 by Budget 2025). Under the Old Regime, the rebate continues to apply if taxable income does not exceed ₹5,00,000.
The choice depends on your deductions. If you invest heavily in 80C instruments, pay home loan EMIs, live on rent, or pay health insurance premiums, the Old Regime may result in lower tax. If you have few deductions or prefer simplicity, the New Regime generally works better - especially at lower-to-mid income levels (up to ₹12 lakh for FY 2025-26 onwards) where the 87A rebate makes tax nil.
