Compare your income tax under India's new and old tax regimes for FY 2025-26. Budget 2025 enhanced the new regime significantly — zero tax up to Rs.12.75 lakh gross salary. This calculator runs both regimes simultaneously and tells you which saves more.
Step 1. Enter your gross annual salary (total CTC before any deductions).
Step 2. Enter your HRA exemption if applicable (old regime only).
Step 3. Enter Section 80C investments (EPF, PPF, ELSS, LIC — max Rs.1.5 lakh).
Step 4. Enter health insurance premium (80D) and home loan interest (Section 24b).
Step 5. The calculator computes tax under both regimes and recommends the better option.
With the default inputs loaded in the form, the calculator produces a starting result you can use as a baseline. Change one field at a time to compare a new scenario.
India's dual income tax regime creates a genuine optimization problem for every taxpayer. The Union Budget 2025 significantly enhanced the new regime — raising standard deduction to Rs.75,000, extending the Section 87A rebate to Rs.12 lakh taxable income.
Zero tax for income up to Rs.12,75,000 is the headline change from Budget 2025. With Rs.75,000 standard deduction and Rs.60,000 maximum 87A rebate, a salaried employee earning up to Rs.12,75,000 gross pays zero income tax under the new regime.
The old regime remains advantageous for taxpayers with substantial deductions: home loan interest above Rs.2 lakh, large HRA exemptions in metro cities, maximum 80C investments, NPS contributions, and health insurance premiums.
Salaried employees can switch between regimes every year at ITR filing time. Inform your employer at the beginning of each financial year via Form 12BB which regime to use for TDS calculation.
Employees with fewer deductions — those without home loans, in non-metro cities with low HRA, or with limited 80C investments. The new regime is now better for income up to Rs.15-17 lakh for most salaried employees.
Employees with: home loan interest above Rs.2 lakh, large HRA exemptions in Mumbai/Delhi, maximum 80C + NPS contributions. Calculate both to find your specific optimum.
Salaried employees can switch between regimes each financial year at ITR filing time. Inform your employer about the chosen regime for TDS purposes at the start of the financial year via Form 12BB.
If taxable income (after Rs.75,000 standard deduction) is Rs.12 lakh or less, you get a rebate of up to Rs.60,000 bringing total tax to zero. This means gross salary up to Rs.12,75,000 results in zero income tax under the new regime.
Computes standard and step-up SIP future value, adds existing corpus growth, and adjusts for inflation to show real purchasing power at end of investment period.
Applies the statutory gratuity formula (Basic+DA × 15 × years ÷ 26) and checks the Rs. 20 lakh tax-exemption limit under the Payment of Gratuity Act 1972.
Projects EPF corpus using compound interest on current balance plus future contributions with salary growth. Compares against retirement income needs and shows the gap.
Disclaimer: Results from this calculator are for informational and planning purposes only and do not constitute financial, legal, or professional advice. Always verify important calculations with a qualified professional.
