Income Tax Calculator AY 2025-26 — Old & New Regime, Slab-wise Breakdown

Calculate your exact income tax for AY 2025-26 (FY 2024-25) under both old and new tax regime. Get slab-wise tax breakdown, Section 87A rebate, surcharge, cess, deductions, and a side-by-side regime comparison — all free and instant.

Step 1

Income Details — AY 2025-26

Enter total income before any deductions (CTC or gross salary)

Tax Regime

Age Group

Employment Type

Income Tax Calculator AY 2025-26 — How It Works

This income tax calculator AY 2025-26 (Assessment Year 2025-26, Financial Year 2024-25) computes your exact income tax liability under both the old tax regime and the new tax regime as amended by Budget 2024. Enter your gross annual income, select your regime, add deductions if applicable, and get a complete tax computation — including slab-wise breakdown, Section 87A rebate, surcharge, Health and Education Cess, and monthly in-hand salary.

The calculator is updated for all Budget 2024 changes: the new regime standard deduction increased to ₹75,000, revised new regime slabs (₹3L–₹7L at 5%, ₹7L–₹10L at 10%), and enhanced Section 87A rebate up to ₹25,000 for new regime taxpayers with income up to ₹7 lakh.

Income Tax Slabs AY 2025-26 — Old Regime vs New Regime

✨ New Tax Regime AY 2025-26

Budget 2024 revised slabs · Standard deduction ₹75,000

Income RangeTax Rate
Up to ₹3 LakhNil
₹3L – ₹7L5%
₹7L – ₹10L10%
₹10L – ₹12L15%
₹12L – ₹15L20%
Above ₹15L30%
✅ Rebate u/s 87A: Tax = Zero for income up to ₹7 lakh

📋 Old Tax Regime AY 2025-26

All deductions available · Standard deduction ₹50,000

Income RangeTax Rate
Up to ₹2.5L (₹3L for 60+, ₹5L for 80+)Nil
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%
✅ Rebate u/s 87A: Tax = Zero for income up to ₹5 lakh

Key Changes in Budget 2024 for AY 2025-26

New Regime Standard Deduction: ₹50,000 → ₹75,000
Salaried employees and pensioners opting for the new tax regime get an increased standard deduction of ₹75,000 (up from ₹50,000). This reduces taxable income by ₹25,000 more than before.
Revised New Regime Tax Slabs
The new regime slabs were restructured: ₹3L–₹6L (earlier) changed to ₹3L–₹7L at 5%. ₹6L–₹9L changed to ₹7L–₹10L at 10%. ₹9L–₹12L changed to ₹10L–₹12L at 15%. ₹12L–₹15L at 20% and above ₹15L at 30% remain.
Section 87A Rebate Enhanced in New Regime
The rebate under Section 87A for new regime taxpayers increased to ₹25,000 (from ₹25,000 in FY 2023-24). Combined with revised slabs, this makes the effective tax zero for net income up to ₹7 lakh in the new regime.
Capital Gains Tax Changes
STCG (Short-term capital gains on equity) tax rate increased from 15% to 20%. LTCG (Long-term capital gains) exemption limit raised to ₹1.25 lakh (from ₹1 lakh). LTCG tax rate remains 12.5% without indexation. Note: This calculator covers salary/business income, not capital gains.

Old Regime vs New Regime AY 2025-26 — Which Is Better?

The choice between old and new tax regime depends entirely on your deduction profile. Here's a practical guide:

Choose New Regime if…

  • Your total deductions are below ₹3.75 lakh
  • You don't have a home loan
  • You prefer simplicity (no need to track investments)
  • Your income is below ₹7 lakh (tax becomes zero after 87A rebate)
  • You're in early career without large insurance/PF deductions

📋 Choose Old Regime if…

  • You claim maximum 80C (₹1.5L) + NPS (₹50K) + 80D (₹25K)
  • You have a home loan with ₹2L interest deduction
  • You receive significant HRA exemption
  • Your total deductions exceed ₹3.75 lakh
  • You're a senior citizen with higher medical expenses

Income Tax Examples AY 2025-26 — Quick Reference

Annual SalaryNew Regime TaxOld Regime Tax (max deductions)Better Regime
₹5 LakhNil (87A rebate)Nil (87A rebate)Either
₹7 LakhNil (87A rebate)₹2,500New Regime ✓
₹10 Lakh~₹54,600~₹1,17,000 (before deductions)Depends on deductions
₹12 Lakh~₹83,200~₹1,56,000 (before deductions)New (unless high deductions)
₹15 Lakh~₹1,30,000~₹2,34,000 (before deductions)New (if deductions < ₹3.75L)
₹20 Lakh~₹2,94,400~₹3,61,100 (before deductions)Depends on deductions
* New regime figures include ₹75,000 standard deduction. Old regime figures include ₹50,000 standard deduction only. Add 80C, 80D, HRA, home loan to reduce old regime tax further. Includes 4% cess. No surcharge for incomes below ₹50L.

Income Tax Deductions Under Old Regime — AY 2025-26

Sec 80C
Max: ₹1.5 Lakh

PF/EPF, PPF, ELSS mutual funds, LIC premium, 5-year FD, NSC, SSY, home loan principal repayment, tuition fees

Sec 80D
Max: ₹25K / ₹50K

Health insurance premium for self (₹25K), parents (₹25K additional or ₹50K if senior citizen)

Sec 80CCD(1B)
Max: ₹50,000

Additional NPS contribution over 80C limit. Effectively allows ₹2L total tax-free investment (80C + 80CCD(1B))

Sec 24(b)
Max: ₹2 Lakh

Interest paid on home loan for self-occupied property. No limit for let-out property (but set-off restricted to ₹2L)

HRA Exemption
Max: Actual

Minimum of: Actual HRA received, 50%/40% of salary (metro/non-metro), or rent paid minus 10% of salary

Sec 80E
Max: No limit

Interest paid on education loan for higher studies. Available for 8 years from start of repayment

Sec 80TTA
Max: ₹10,000

Interest from savings bank account (not FD). For senior citizens, Section 80TTB allows ₹50,000 (all bank interest)

Sec 80G
Max: 50% or 100%

Donations to approved funds. PM Relief Fund — 100%. Most other approved charities — 50% of eligible donation

Frequently Asked Questions — Income Tax Calculator AY 2025-26

What are the income tax slabs for AY 2025-26 under the new regime?+
Under the new tax regime for AY 2025-26 (FY 2024-25), as revised in Budget 2024: Up to ₹3 lakh — Nil. ₹3 lakh to ₹7 lakh — 5%. ₹7 lakh to ₹10 lakh — 10%. ₹10 lakh to ₹12 lakh — 15%. ₹12 lakh to ₹15 lakh — 20%. Above ₹15 lakh — 30%. Additionally, individuals with taxable income up to ₹7 lakh get a full rebate under Section 87A, making their tax zero.
What are the income tax slabs for AY 2025-26 under the old regime?+
Under the old tax regime for AY 2025-26: Up to ₹2.5 lakh — Nil (₹3L for senior citizens 60-80, ₹5L for super senior citizens above 80). ₹2.5 lakh to ₹5 lakh — 5%. ₹5 lakh to ₹10 lakh — 20%. Above ₹10 lakh — 30%. Section 87A rebate available up to ₹12,500 for taxable income up to ₹5 lakh.
What is the standard deduction for AY 2025-26?+
For AY 2025-26 (FY 2024-25), the standard deduction for salaried employees and pensioners is: New Regime — ₹75,000 (increased from ₹50,000 in Budget 2024). Old Regime — ₹50,000. Self-employed individuals and business owners are not eligible for standard deduction. The standard deduction is automatically subtracted from gross salary before calculating taxable income.
Which tax regime is better in AY 2025-26 — old or new?+
It depends on your deductions. The new regime is better if your total deductions (80C, 80D, HRA, home loan, NPS) are less than approximately ₹3.75 lakh (for income above ₹15L). The old regime is better if you have high deductions — like maximum 80C (₹1.5L) + NPS (₹50K) + home loan interest (₹2L) + 80D (₹25K) + HRA exemption. Use our regime comparison tool above to find which saves more for your specific income and deduction profile.
What is Section 87A rebate for AY 2025-26?+
Section 87A provides a tax rebate to reduce your final tax liability: New Regime — Rebate up to ₹25,000 for individuals with taxable income up to ₹7 lakh. This effectively makes tax zero for income up to ₹7 lakh. Old Regime — Rebate up to ₹12,500 for individuals with taxable income up to ₹5 lakh. The rebate is applied after calculating slab-wise tax but before adding surcharge and cess.
What deductions are available under the new tax regime for AY 2025-26?+
The new regime for AY 2025-26 has limited deductions: Standard Deduction of ₹75,000 (salaried/pensioners). Employer's NPS contribution under 80CCD(2). Agniveer Corpus Fund contribution. Family pension standard deduction. Most other deductions — 80C (PF, ELSS, LIC), 80D (health insurance), HRA, home loan interest under Section 24b, LTA, 80TTA — are NOT available in the new regime.
What deductions can I claim under the old regime for AY 2025-26?+
Under the old regime for AY 2025-26, you can claim: Section 80C — up to ₹1.5 lakh (PF, PPF, ELSS, LIC, NSC, 5-year FD, SSY, home loan principal). Section 80D — up to ₹25,000 (health insurance) or ₹50,000 for senior citizens. Section 80CCD(1B) — NPS contribution up to ₹50,000. Section 24b — Home loan interest up to ₹2 lakh. HRA exemption for salaried. LTA. Section 80E — education loan interest (no limit). Section 80G — donations. Standard deduction of ₹50,000.
How is surcharge calculated on income tax AY 2025-26?+
Surcharge is applicable on income tax for high earners: Income ₹50 lakh to ₹1 crore — 10% surcharge. ₹1 crore to ₹2 crore — 15% surcharge. ₹2 crore to ₹5 crore — 25% surcharge. Above ₹5 crore — 25% surcharge (new regime, capped) or 37% surcharge (old regime). Health and Education Cess of 4% is applied on (tax + surcharge).
What is Health and Education Cess for AY 2025-26?+
Health and Education Cess is levied at 4% on your total income tax plus surcharge. It applies to all taxpayers regardless of income level. Formula: Cess = (Income Tax + Surcharge) × 4%. This cess funds health and education schemes of the Central Government.
How to calculate income tax for a salary of ₹12 lakh for AY 2025-26?+
For ₹12 lakh annual income under the new regime (AY 2025-26): Gross = ₹12,00,000. Less Standard Deduction = ₹75,000. Taxable Income = ₹11,25,000. Slab tax: 0 on first ₹3L + ₹20,000 (5% on ₹3L–7L) + ₹30,000 (10% on ₹7L–10L) + ₹18,750 (15% on ₹10L–11.25L) = ₹68,750. Add 4% cess = ₹2,750. Total tax = ₹71,500. Effective rate = 5.96%. Monthly in-hand = approximately ₹94,042.

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