Salary

Income Tax Calculator

Compare Old vs New Tax Regime (FY 2024-25) and calculate liability.

Input Values

Adjust parameters below

300,0005,000,000
0500,000
RESULT
Tax (New Regime)
$0
MONEY
Tax (Old Regime)
$117,000

How It Works

Guide and Formula

How Income Tax is Calculated (FY 2025-26)

This calculator helps you compare the New Tax Regime (default) vs the Old Tax Regime to find maximum savings.

🚀 Key Update for FY 2025-26:

Under the New Tax Regime, taxable income up to ₹12,00,000 is effectively Tax-Free due to increased rebate limits.

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1. New Tax Regime (FY 2025-26)

This is the default regime with lower tax rates but fewer deductions.

Tax Slabs:

0 - ₹4 Lakh: Nil
₹4L - ₹8 Lakh: 5%
₹8L - ₹12 Lakh: 10%
₹12L - ₹16 Lakh: 15%
₹16L - ₹20 Lakh: 20%
₹20L - ₹24 Lakh: 25%
Above ₹24 Lakh: 30%

Key Features:

Standard Deduction: ₹75,000 (Available for salaried individuals).
Sec 87A Rebate: Up to ₹12 Lakhs taxable income, tax payable is ₹60,000, which is fully rebated. Net Tax = ₹0.
Marginal Relief: Available if income slightly exceeds ₹12 Lakhs.

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2. Old Tax Regime

Allows you to claim exemptions like HRA, LTA, and deductions (80C, 80D) to lower taxable income.

Tax Slabs:

0 - ₹2.5 Lakh: Nil
₹2.5L - ₹5 Lakh: 5%
₹5L - ₹10 Lakh: 20%
Above ₹10 Lakh: 30%

Key Features:

Standard Deduction: ₹50,000.
Rebate: Tax-free only up to ₹5 Lakhs income.

?FAQs

Why is income up to 12 Lakhs tax-free?

In the New Regime (FY 2025-26), the government provides a Section 87A rebate of up to ₹60,000. If your taxable income is ₹12 Lakhs, the calculated tax is ₹60,000, which is fully cancelled by the rebate.

Which regime should I choose?

For most people earning up to ₹20 Lakhs, the New Regime is significantly better due to the ₹12L tax-free limit. Choose Old Regime ONLY if you have very high deductions.

Income Tax Calculator - EasyCalcHub