Income Tax Calculator FY 2025-26 – Compare Old & New Tax Regime

Old Tax Regime vs New Tax Regime – Which is Better?

The new tax regime offers lower slab rates and a higher rebate (income up to ₹12 lakh is effectively tax-free), but does not allow most deductions. The old tax regime has higher slab rates but allows deductions under Section 80C, HRA, home loan interest, and more. Use our calculator above to get the exact comparison for your income.

Key Deductions Under the Old Tax Regime

Section 80C – Up to ₹1,50,000

Includes PPF, ELSS mutual funds, NSC, life insurance premiums, home loan principal repayment, EPF contribution, and children's tuition fees.

HRA – House Rent Allowance

Claim exemption on the minimum of: actual HRA received, 50% of basic salary (metro) or 40% (non-metro), and actual rent paid minus 10% of basic salary.

Section 24(b) – Home Loan Interest

Interest paid on a home loan for a self-occupied property is deductible up to ₹2,00,000 per year.

Section 80D – Health Insurance

Premium paid for health insurance is deductible up to ₹25,000 for self/spouse/children and ₹25,000 (₹50,000 for senior citizens) for parents.

Also try: Use our PPF Calculator to plan your 80C investments, our SIP Calculator for ELSS planning, or our EMI Calculator for home loan planning.

Frequently Asked Questions

1. What is the income tax exemption limit for FY 2025-26?

Under the new tax regime, income up to ₹12 lakh is effectively tax-free due to rebate under Section 87A. Under the old regime, the basic exemption limit is ₹2.5 lakh (₹3 lakh for senior citizens).

2. What is the standard deduction for FY 2025-26?

₹75,000 under the new regime and ₹50,000 under the old regime for salaried employees.