🇮🇳 Income Tax Calculator FY 2025-26 (Budget 2025)
Compare Old vs. New Tax Regimes with the new ₹12 Lakh Tax-Free limit and ₹75,000 Standard Deduction. Plan your tax savings for the current financial year.
1. Income Details
3. Comparison & Summary
Tax Computation Statement (FY 2025-26)
Based on Union Budget 2025 Amendments
| PARTICULARS | OLD REGIME | NEW REGIME |
|---|---|---|
| Income Details | ||
| Gross Salary Income | 0 | 0 |
| Income from Other Sources | 0 | 0 |
| Gross Total Income (A) | 0 | 0 |
| Less: Exemptions & Deductions | ||
| Standard Deduction | 50,000 | 75,000 |
| Chapter VI-A (80C, 80D, NPS, etc.) | 0 | 0 |
| HRA & Home Loan Int (Sec 24) | 0 | 0 |
| Total Deductions (B) | 0 | 0 |
| Tax Calculation | ||
| Net Taxable Income (A - B) | 0 | 0 |
| Income Tax (Slab based) | 0 | 0 |
| Section 87A Rebate | 0 | 0 |
| Add: Health & Education Cess (4%) | 0 | 0 |
| Final Tax Liability | 0 | 0 |
Budget 2025: Massive Tax Relief and New Rules Explained
The Union Budget 2025 has restructured the Indian tax landscape to benefit the middle-class salaried individual. The primary goal is to simplify filing while putting more disposable income in your pocket. Our Income Tax Calculator FY 2025-26 is updated with the latest finance bill amendments to give you 100% accurate results.
Understanding the difference between Financial Year (FY) and Assessment Year (AY) is crucial. For the current cycle, the income you earn between April 1, 2025, and March 31, 2026, falls under FY 2025-26. The year you file your taxes for this income is AY 2026-27.
Revised New Tax Regime Slabs (FY 2025-26 / AY 2026-27)
The slabs under Section 115BAC have been widened to provide more relief at lower income levels. Here is the official tax structure for the default New Tax Regime:
| Taxable Income Slab (₹) | New Tax Rate | Tax Payable (At Slab End) |
|---|---|---|
| 0 – 4,00,000 | NIL | ₹0 |
| 4,00,001 – 8,00,000 | 5% | ₹20,000 |
| 8,00,001 – 12,00,000 | 10% | ₹40,000 |
| 12,00,001 – 16,00,000 | 15% | ₹1,00,000 |
| 16,00,001 – 20,00,000 | 20% | ₹1,80,000 |
| 20,00,001 – 24,00,000 | 25% | ₹2,80,000 |
| Above 24,00,000 | 30% | Slab Based |
*A Health & Education Cess of 4% is applicable on the total tax amount calculated above.
Checklist: Deductions Allowed in Old Regime
If you choose to opt-out of the New Regime, you can reduce your taxable income using these popular deductions. Use our calculator to see if these savings outweigh the lower rates of the New Regime:
🏠 Housing Benefits
- Section 24(b): Home loan interest deduction up to ₹2,00,000.
- HRA: House Rent Allowance exemption for those living in rented properties.
💰 Investments (80C)
- Max ₹1.5 Lakh: Includes EPF, PPF, ELSS, LIC premiums, and Principal repayment of home loans.
- Section 80CCD: Additional ₹50,000 for NPS contributions.
🏥 Health & Others
- Section 80D: Medical insurance premiums for self (₹25k) and parents (₹50k for seniors).
- Section 80E: Unlimited deduction on Education Loan interest for 8 years.
Income Tax Frequently Asked Questions
What happens if I earn ₹15 Lakhs?
For a salaried professional earning ₹15 Lakhs, the New Regime is typically better. After the ₹75k standard deduction, your taxable income is ₹14.25L. In the New Regime, your tax would be approximately ₹1.33 Lakhs, whereas in the Old Regime, it could exceed ₹2 Lakhs unless you have massive investments.
How does the Section 87A Rebate work?
The rebate is a tax waiver. In Budget 2025, if your taxable income is ₹12 Lakhs or less, the tax calculated (which is ₹60,000) is completely waived off by the government, resulting in a Zero Tax liability.
Is the Standard Deduction available for pensioners?
Yes, pensioners receiving pension income are entitled to the same Standard Deduction of ₹75,000 in the New Regime as active salaried employees.
Which regime is better for freelancers?
Freelancers usually benefit from the New Regime because they often don't have EPF or HRA components. However, freelancers can also use Presumptive Taxation (Section 44ADA) which works with both regimes.