ganak.appIncome Tax Calculator
Calculate income tax for FY 2025-26 and FY 2024-25 under both Old and New tax regimes. Compare tax liability, see slab-wise breakdown, and find which regime saves you more. Supports key Old Regime deductions — 80C, 80D (self + parents), HRA, NPS, home loan interest, and more. Updated for Union Budget 2025 with revised new regime slabs and ₹12.75 lakh tax-free income for salaried individuals.
Old vs New Regime Comparison
Side-by-side tax comparison for both regimes
| Metric | Old Regime | New Regime |
|---|---|---|
| Taxable Income | ₹11,50,000 11.50 Lakhs | ₹11,25,000 11.25 Lakhs |
| Tax (Before Cess) | ₹1,57,500 1.57 Lakh | ₹0 |
| Cess (4%) | ₹6,300 | ₹0 |
| Total Tax | ₹1,63,800 1.64 Lakh | ₹0 |
| Take-Home Income | ₹10,36,200 10.36 Lakhs | ₹12,00,000 12.00 Lakhs |
This calculator covers standard deduction and common Old Regime deductions (80C, 80D, HRA, 24(b), 80TTA/TTB). New Regime deductions like employer NPS (80CCD(2)), family pension (57(iia)), and let-out property interest (24(b)) are not yet modeled. For official filing, verify with incometax.gov.in.
Tax Calculation Breakdown
Step-by-step computation from gross income to total tax
Slab-wise Tax Breakdown (New Regime)
How your income is taxed at each slab rate
| Income Slab | Rate | Tax |
|---|---|---|
| ₹0 – ₹4,00,000 | 0% | ₹0 |
| ₹4,00,000 – ₹8,00,000 | 5% | ₹20,000 |
| ₹8,00,000 – ₹12,00,000 | 10% | ₹32,500 |
| ₹12,00,000 – ₹16,00,000 | 15% | ₹0 |
| ₹16,00,000 – ₹20,00,000 | 20% | ₹0 |
| ₹20,00,000 – ₹24,00,000 | 25% | ₹0 |
| ₹24,00,000 – Above | 30% | ₹0 |
| Total | ₹52,500 | |
How Income Tax Works in India
Understanding India's progressive tax system and regime options
Income tax in India is levied by the Central Government on the income earned by individuals, Hindu Undivided Families (HUFs), and other entities during a financial year (April 1 – March 31).
India follows a progressive tax system — higher income is taxed at higher rates through a slab structure. Taxpayers can choose between the Old Regime (with deductions) and the New Regime (lower rates, fewer deductions).
The New Tax Regime is the default regime from FY 2023-24 onwards. Taxpayers must explicitly opt for the Old Regime if they wish to claim deductions under sections like 80C, 80D, and HRA.
New Regime Tax Slabs (FY 2025-26)
Income tax slab rates under the new default regime
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction of ₹75,000 for salaried individuals under the new regime. Rebate u/s 87A makes income up to ₹12,75,000 effectively tax-free for salaried taxpayers.
Key Deductions (Old Regime)
Major tax-saving deductions available under the old tax regime
EPF, PPF, ELSS, NSC, life insurance premium, tuition fees, home loan principal, 5-year FD.
Additional NPS contribution beyond the 80C limit.
Health insurance premiums — ₹25K for self (₹50K if senior) + ₹25K for parents (₹50K if senior parents).
Interest on home loan for self-occupied property.
Minimum of actual HRA received, rent paid minus 10% of salary, or 50%/40% of salary (metro/non-metro).
Flat deduction for salaried individuals under the old regime.
Old vs New Regime — Which Is Better?
Choosing the right tax regime based on your deduction profile
The New Regime offers lower tax rates and a higher standard deduction (₹75,000) but does not allow most deductions. It is beneficial if your total deductions (80C, 80D, HRA, etc.) are low.
The Old Regime has higher rates but allows deductions up to ₹4-5 lakhs for taxpayers with home loans, HRA, insurance premiums, and investment deductions. It is better for taxpayers who can claim substantial deductions.
Rule of thumb: If your total deductions under the old regime exceed ₹3.75 lakhs (for income around ₹15L), the old regime may save more tax. Use the calculator above to compare both regimes with your actual numbers.
Note: The New Regime is the default from FY 2023-24. You must explicitly opt for the Old Regime while filing your ITR.
Frequently Asked Questions
Common questions about income tax calculation in India