Income Tax Calculator FY 2025-2026
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Income Tax Computation
Comparison of Old vs. New Regime (115BAC)
Accurate Income Tax Calculator for FY 2024-25 & FY 2025-26
Planning your finances for the new assessment year? Our Income Tax Calculator is updated with the latest Budget 2024 and 2025 amendments. Whether you are a salaried professional, a freelancer, or a senior citizen, this tool helps you navigate the “Default” New Tax Regime vs. the “Optional” Old Tax Regime in seconds.
Key Changes in Budget 2024-25 & 2025-26
To provide relief to the middle class, the government has introduced significant updates to the New Tax Regime (Section 115BAC):
- Increased Standard Deduction: Raised from ₹50,000 to ₹75,000 for salaried employees.
- Enhanced Tax Rebate: No tax is payable for income up to ₹7 Lakh (FY 24-25) and effectively up to ₹12 Lakh (FY 25-26) under the New Regime due to Section 87A.
- Revised Slabs: Tax bands have been widened to ensure lower tax outgo for the ₹10L–₹15L income bracket.
New Tax Regime vs. Old Tax Regime: Which is Better?
Choosing between the two depends entirely on your investments.
| Feature | Old Tax Regime | New Tax Regime (Default) |
| Tax Rates | Higher (up to 30%) | Lower (up to 30% but wider slabs) |
| 80C Deductions | Available (up to ₹1.5L) | Not Available |
| HRA Exemption | Available | Not Available |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Best For | High Investors (Home loan, LIC, ELSS) | People with limited investments |
Pro Tip: If your total deductions (80C, 80D, HRA, etc.) exceed ₹3.75 Lakhs and your income is above ₹15 Lakhs, the Old Tax Regime usually results in higher savings. Use the calculator above to check your specific case.