Income Tax Calculator 2025-26

Compare old vs new tax regime and calculate your income tax liability for FY 2025-26. Get detailed breakdown of deductions, exemptions, and choose the best tax regime for maximum savings.

Old vs New RegimeSection 80C DeductionsHRA ExemptionTax Planning
₹1L₹1Cr
₹0₹1.5L (Max)

PPF, EPF, ELSS, Life Insurance, etc. (Max: ₹1,50,000)

₹0₹75K

Health insurance premium (Max: ₹25K self + ₹25K parents + ₹25K senior parents)

₹0₹50K (Max)

Additional NPS contribution (Max: ₹50,000)

₹0₹2L

Interest on education loan (No upper limit)

₹0₹2L (Max)

Interest on home loan (Max: ₹2,00,000)

Section 80G, 80TTA, LTA, etc.

Recommended Tax Regime

Old Tax Regime

Tax Liability: ₹84.34 K

You save ₹1,456 (1.7%) with old regime

Old Tax Regime

Recommended
Tax Liability₹84.34 K
Net Salary₹11.16 L
Effective Rate7.03%

New Tax Regime

Tax Liability₹85.80 K
Net Salary₹11.14 L
Effective Rate7.15%

Tax Deduction Summary (Old Regime)

Section 80C
₹1.50 L
Section 80D
₹25.00 K
NPS (80CCD)
₹0
HRA Exemption
₹1.32 L

Old Tax Regime Breakdown

Deduction Breakdown

Gross Salary₹12.00 L
Standard Deduction-₹50.00 K
HRA Exemption-₹1.32 L
Section 80C-₹1.50 L
Section 80D-₹25.00 K
Other Deductions-₹0

Taxable Income₹8.43 L

Tax Calculation

₹0.0 L - ₹2.5 L @ 0%₹0
₹2.5 L - ₹5.0 L @ 5%₹12.50 K
₹5.0 L - ₹10.0 L @ 20%₹68.60 K

Income Tax₹81.10 K
Health & Education Cess (4%)₹3.24 K

Total Tax Liability₹84.34 K

New Tax Regime Breakdown

Deduction Breakdown

Gross Salary₹12.00 L
Standard Deduction-₹50.00 K

Taxable Income₹11.50 L

New regime offers lower tax rates but doesn't allow most deductions and exemptions.

Tax Calculation

₹0.0 L - ₹3.0 L @ 0%₹0
₹3.0 L - ₹6.0 L @ 5%₹15.00 K
₹6.0 L - ₹9.0 L @ 10%₹30.00 K
₹9.0 L - ₹12.0 L @ 15%₹37.50 K

Income Tax₹82.50 K
Health & Education Cess (4%)₹3.30 K

Total Tax Liability₹85.80 K

Income Tax Slabs FY 2025-26

Old Tax Regime

₹0 - ₹2.5 lakh0%
₹2.5 - ₹5 lakh5%
₹5 - ₹10 lakh20%
Above ₹10 lakh30%

New Tax Regime

₹0 - ₹3 lakh0%
₹3 - ₹6 lakh5%
₹6 - ₹9 lakh10%
₹9 - ₹12 lakh15%
₹12 - ₹15 lakh20%
Above ₹15 lakh30%

When Should You File Your Income Tax Return (ITR)?

1. Before the Due Date

Filing your ITR before the statutory deadline (generally 31st July for salaried individuals) helps you avoid late-filing fees under Section 234F and ensures faster refund processing.

2. When Your Income Exceeds the Basic Exemption Limit

If your total income crosses the basic exemption threshold (₹2.5 Lakh for individuals, ₹3 Lakh for senior citizens, and ₹5 Lakh for super-senior citizens) you are legally obliged to file your return—even if no tax is payable.

3. To Claim Tax Refunds & Carry-Forward Losses

You can only receive a TDS / TCS refund or carry forward capital and business losses if you file your ITR on time. Missing the deadline could wipe out valuable losses that might reduce future tax bills.

4. If You Own Foreign Assets or Earn Foreign Income

Residents holding foreign bank accounts, shares, or other overseas assets must mandatorily file an ITR — even when income is below the exemption limit — to stay compliant with Schedule FA disclosure norms.

Benefits of Old vs New Tax Regime

Old Regime Benefits

  • Section 80C deductions up to ₹1.5L
  • HRA exemption available
  • NPS additional ₹50K deduction
  • Education & home loan interest benefits
  • Multiple tax-saving investment options

New Regime Benefits

  • Lower tax rates across all slabs
  • Higher basic exemption (₹3L vs ₹2.5L)
  • No need for investment proofs
  • Simplified tax filing process
  • Best for those with minimal deductions

Tax Planning for Different Income Groups

₹0 - ₹10 Lakh

Conservative Planning

  • • Consider new tax regime for lower rates
  • • Invest in ELSS for 80C benefits
  • • Use PPF for long-term savings
  • • Health insurance for 80D benefits
  • • HRA exemption if applicable

₹10 - ₹25 Lakh

Balanced Approach

  • • Compare both tax regimes carefully
  • • Maximize Section 80C deductions
  • • Consider NPS for additional 50K deduction
  • • Home loan for interest benefits
  • • Capital gains tax planning

₹25 Lakh+

Advanced Planning

  • • Old regime usually better with deductions
  • • Structure salary for tax efficiency
  • • Investment diversification for tax planning
  • • Estate planning considerations
  • • Professional tax advisory recommended

Financial Calculator FAQs

Everything you need to know about income tax calculations

The old tax regime allows various deductions like Section 80C, 80D, HRA exemption but has higher tax rates. The new tax regime offers lower tax rates but doesn't allow most deductions except standard deduction. Choose based on your deductions and income level.

Need More Help?

Financial planning requires careful consideration of various factors. Consider consulting with a financial advisor for personalized advice based on your specific situation.

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