AY 2025-26 Updated
Income Tax Calculator (Old vs New Regime)
Compare your net tax liability between the default New Tax Regime (Section 115BAC) and the traditional Old Tax Regime with the latest Union Budget revisions, including the enhanced ₹75,000 standard deduction.
Income & Deductions AY 2025-26
Total income from salary, business profits, interest, or freelancing before deductions.
Old Regime Deductions & Exemptions
Tax Liability Comparison
Recommendation: New Tax Regime saves you ₹ 19,240 per year.
New Tax Regime
₹ 85,800
Taxable: ₹ 11,25,000
Old Tax Regime
₹ 1,05,040
Taxable: ₹ 9,15,000
Standard Deduction:
₹75,000 (New) / ₹50,000 (Old)
Health & Education Cess:
4% included in both
Rebate u/s 87A:
Nil tax up to ₹7L (New) / ₹5L (Old)
Revised Income Tax Slabs for FY 2024-25 & 2025-26 (AY 2025-26)
Under Union Budget 2024, the central government revised the default New Tax Regime slabs to deliver greater disposable income to middle-class salaried taxpayers.
| Income Slabs (New Regime u/s 115BAC) | New Tax Rate | Income Slabs (Old Tax Regime) | Old Tax Rate |
|---|---|---|---|
| Up to ₹3,00,000 | Nil | Up to ₹2,50,000 | Nil |
| ₹3,00,001 to ₹7,00,000 | 5% (Rebate up to ₹7L) | ₹2,50,001 to ₹5,00,000 | 5% (Rebate up to ₹5L) |
| ₹7,00,001 to ₹10,00,000 | 10% | ₹5,00,001 to ₹10,00,000 | 20% |
| ₹10,00,001 to ₹12,00,000 | 15% | Above ₹10,00,000 | 30% |
| ₹12,00,001 to ₹15,00,000 | 20% | — | — |
| Above ₹15,00,000 | 30% | — | — |
Key Differences: Old Regime vs New Regime
- Standard Deduction: Increased to ₹75,000 for salaried employees in the New Regime, while remaining at ₹50,000 in the Old Regime.
- Rebate under Section 87A: In the New Regime, if taxable income does not exceed ₹7,00,000, tax liability is completely zero. With standard deduction, salaried individuals earning up to ₹7,75,000 pay zero tax. In the Old Regime, the rebate is restricted to taxable income up to ₹5,00,000.
- Deductions & Exemptions: The New Regime disallows Chapter VI-A deductions (80C, 80D, 80E) and Section 10 exemptions (HRA, LTA). The Old Regime permits all eligible deductions.
Frequently Asked Questions
Salaried individuals without business income can freely switch between the Old and New Tax Regimes every financial year at the time of filing their ITR under Section 139(1). However, individuals with business or professional income (ITR-3 or ITR-4) can only switch back to the Old Regime once in their lifetime and must file Form 10-IEA.
Yes. Pension received from a former employer is treated as salary under Section 17(1)(ii) and is eligible for the standard deduction (₹75,000 in New Regime, ₹50,000 in Old Regime). Family pension receives a dedicated deduction under Section 57(iia) of ₹25,000 in the New Regime.