Income Tax Calculator — Old vs New Regime
Compare Your Tax. Choose Your Regime With Confidence.
Calculate your estimated income tax liability under the Old and New Tax Regimes for FY 2026-27 (Income-tax Act, 2025) and FY 2025-26 and understand how deductions affect your take-home pay.
COMPARE TAX REGIMES
Understand estimated tax liability under Old and New Tax Regimes side by side.
CHECK DEDUCTIONS
See how Section 80C, 80D, 24(b) and other eligible deductions affect Old Regime tax.
UNDERSTAND TAKE-HOME
See taxable income, total tax liability, cess, and net take-home salary impact clearly.
Group A: Income Profile
Annual EarningsGroup B: Old Regime Deductions
Chapter VI-A ExemptionsGroup C: Tax Regime Selection
Display PreferenceWhy Your Tax Result Changes
Understand the key factors influencing your Old vs New Regime income tax liability.
Annual Gross Income
Your total salary, pension, interest, dividends, and rental income form the gross baseline before deductions.
Eligible Deductions
Section 80C, 80D, 24(b) home loan interest, and NPS reduce taxable income under the Old Regime only.
Tax Regime Choice
The New Regime features concessional tax slabs but disallows Chapter VI-A deductions (except standard deduction).
Standard Deduction & Slabs
Salaried individuals receive ₹75,000 standard deduction under the New Regime (FY 2026-27 / 2025 Act) and ₹50,000 under the Old Regime.
Tax Rebate & Relief
Section 156 provides a tax rebate up to ₹60,000 for taxable income up to ₹12,00,000 under FY 2026-27 New Regime, making gross salary up to ₹12.75L tax-free.
Health & Education Cess
A mandatory 4% Health & Education Cess is calculated on the net income tax payable under both regimes.
Income Tax Planning: Things to Check
Practical guidelines to evaluate before choosing your tax regime for the financial year.
1. Choose the Right Tax Regime
Compare both regimes annually. Salaried taxpayers can switch regimes at the time of filing ITR.
2. Review Eligible Deductions
Calculate total Section 80C, 80D, HRA, and 24(b) deductions. If total exceeds ~₹3.75L–₹4.25L, Old Regime may save more tax.
3. Check Health Insurance Deduction
Section 80D allows up to ₹25,000 deduction for self/family and up to ₹50,000 for senior citizen parents under Old Regime.
4. Consider Home Loan Interest
Section 24(b) provides up to ₹2,00,000 deduction for interest paid on self-occupied home loans in Old Regime.
5. Review NPS Contributions
Section 80CCD(1B) provides an additional ₹50,000 tax deduction for voluntary NPS deposits under the Old Regime.
6. Keep Tax Documents Ready
Collect Form 16, AIS, TIS, rent receipts, and investment certificates before filing ITR to avoid notices.
Tax Planning: Important Things to Remember
1. Tax Rules & Slabs Evolve
Budget announcements and Statutory Tax Acts update slab rates, rebate limits, and standard deduction caps annually.
2. Deductions Require Proof
Claiming deductions under the Old Regime requires valid proof of investment, health insurance policies, or home loan interest certificates.
3. Calculator Output is an Estimate
This calculator provides indicative mathematical estimates based on user inputs. Final tax liability is assessed upon ITR filing.
4. Employer Intimation vs ITR Selection
Salaried employees can select New Regime for monthly TDS intimation but can choose Old Regime while filing final ITR if beneficial.
Frequently Asked Questions
Which tax regime is better for me?
For Tax Year 2026-27, the New Tax Regime is generally more beneficial if your total eligible deductions (80C, 80D, HRA, 24(b)) are under ₹3.75 - 4.25 Lakh. If your deductions exceed this threshold, the Old Regime may save more tax. Use the side-by-side comparison table above to see your exact numbers.
What is the standard deduction and tax rebate in Tax Year 2026-27?
Under the New Tax Regime (Income-tax Act, 2025), the standard deduction is ₹75,000 for salaried employees and pensioners. Under Section 156, a tax rebate of up to ₹60,000 is available for resident individuals with taxable income up to ₹12,00,000, resulting in zero tax liability up to ₹12.75 Lakh gross salary. For historical FY 2025-26, Section 87A provided a rebate up to ₹25,000 for taxable income up to ₹7,00,000.
Is gross salary up to ₹12.75 Lakh completely tax-free under Tax Year 2026-27?
Yes! Under Tax Year 2026-27 (Income-tax Act, 2025 New Regime), with the ₹75,000 standard deduction and Section 156 tax rebate on taxable income up to ₹12,00,000, a salaried individual earning a gross salary of up to ₹12,75,000 pays ₹0 (zero) income tax.
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Interest on Loans
Interest is the cost of borrowing money. It is calculated as a percentage of the principal amount. The interest rate you get depends on factors like your credit score, loan type, tenure, and lender. Even a small difference in interest rate can make a big difference in the total amount you repay over the loan term.
EMI (Equated Monthly Installment)
EMI is the fixed amount you pay each month to repay your loan. It includes both the principal repayment and the interest. The EMI amount depends on the loan amount, interest rate, and tenure. Choosing a longer tenure reduces your EMI but increases total interest. Pick an EMI that fits comfortably within your monthly budget.
Prepayment
Prepayment means paying a part of your loan before the scheduled time. This reduces the outstanding principal, which in turn reduces the total interest you pay. Many lenders allow part-prepayment without charges on floating rate loans. Even one extra EMI payment per year can shorten your loan tenure and save a significant amount in interest.
Balance Transfer
A balance transfer allows you to move your remaining loan to another lender offering a lower interest rate. This can reduce your EMI and total interest. There may be processing fees involved, so calculate the net savings before switching. Balance transfers work well when there is a significant rate difference and enough tenure remaining.
Frequently Asked Questions
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