Income Tax Calculator FY 2025-26 (AY 2026-27) | Compare Old vs New Regime – CalcWise Skip to calculator

Income Tax Calculator FY 2025-26

Calculate your tax liability for Assessment Year 2026-27 and compare Old vs New Tax Regime to maximize your savings

Enter Your Details

💰 Income Details

Total Gross Income: 12,00,000

💼 Tax Deductions (Old Regime Only)

Total Deductions: 1,50,000

💳 TDS/TCS Already Paid

Total TDS Paid: 0

Tax Comparison Results

Old Regime

With Deductions

₹ 1,17,000

Total tax (incl. cess)

Taxable Income:₹10,50,000
Tax Before Cess:₹1,12,500
4% Cess:₹4,500

New Regime

✓ Recommended

₹ 85,800

Total tax (incl. cess)

Taxable Income:₹11,25,000
Tax Before Cess:₹82,500
4% Cess:₹3,300

💰 You Save with New Regime!

₹ 31,200

Compared to Old Regime

💰 Tax Payment Summary

Best Regime Tax: ₹ 0
Capital Gains Tax: ₹ 0
Total Tax Liability: ₹ 0
TDS Already Paid: ₹ 0
Tax Status:
₹ 0

📅 Advance Tax Payment Schedule

15 Jun 2025 (15%): ₹ 0
15 Sep 2025 (45%): ₹ 0
15 Dec 2025 (75%): ₹ 0
15 Mar 2026 (100%): ₹ 0

*Applicable if total tax >₹10,000

Tax Breakdown Comparison

📊 Real-Life Example: Rahul’s Tax Planning

👨‍💼 The Taxpayer Profile

Rahul, a 35-year-old software engineer from Bangalore, earns ₹15 lakhs annually. He’s confused about which tax regime to choose for FY 2025-26.

Annual Gross Salary: ₹15,00,000
Age: 35 years (Below 60)
EPF + PPF (80C): ₹1,50,000
Health Insurance (80D): ₹25,000
Home Loan Interest: ₹2,00,000
Total Deductions: ₹3,75,000

💰 Tax Comparison Results

Old Regime Tax
₹1,20,120
(Taxable: ₹11,25,000)
New Regime Tax
₹1,53,660
(Taxable: ₹14,25,000)
Best Choice: Old Regime
Saves ₹33,540

💡 Key Insight: Despite lower tax rates in New Regime, Rahul saves more with Old Regime because his deductions (₹3.75L) are substantial. His home loan interest of ₹2L makes a huge difference!

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FY 2025-26 Updated

How Income Tax Calculator Works

Our calculator uses official Income Tax Act provisions for FY 2025-26 (AY 2026-27)

1

Enter Income & Deductions

Input your gross salary and all eligible deductions (80C, 80D, HRA, etc.)

2

Automatic Calculation

Calculator applies tax slabs, rebates (87A), and 4% cess instantly

3

Compare & Save

See both regimes side-by-side with recommended best option

📐 Tax Calculation Logic

Old Regime:

  1. 1️⃣ Gross Income – Deductions = Taxable Income
  2. 2️⃣ Apply age-based slabs (₹2.5L/₹3L/₹5L exemption)
  3. 3️⃣ Calculate slab-wise tax (5%, 20%, 30%)
  4. 4️⃣ Apply 87A rebate if income ≤ ₹5L
  5. 5️⃣ Add 4% Health & Education Cess

New Regime:

  1. 1️⃣ Gross Income – ₹75K Standard Deduction
  2. 2️⃣ Apply 7-tier slabs (0% to 30%)
  3. 3️⃣ Calculate slab-wise tax
  4. 4️⃣ Apply 87A rebate if income ≤ ₹12L
  5. 5️⃣ Add 4% Health & Education Cess

Note: Section 87A rebate makes tax zero for incomes up to ₹5L (Old) or ₹12L (New). Cess is calculated on tax amount, not income.

💡 5 Expert Tax-Saving Tips for FY 2025-26

Proven strategies to minimize your tax liability legally

1

Maximize Section 80C Deductions

Invest full ₹1.5 lakh in PPF, ELSS, EPF, NSC, or LIC to claim maximum deduction under Section 80C. This reduces taxable income significantly.

Tax Saved: ₹46,800 (for 30% tax slab) + ₹1,872 cess = ₹48,672 total savings!
2

Claim Health Insurance (80D)

Deduct up to ₹25,000 for self/family health insurance + ₹25,000 for parents (₹50K if senior citizens). Total potential: ₹75,000.

Pro Tip: Include preventive health check-up expenses (₹5K) within this limit for extra deduction.
3

Opt for NPS (80CCD)

Additional ₹50,000 deduction under Section 80CCD(1B) for NPS contribution. This is OVER AND ABOVE the ₹1.5L limit of 80C!

Combined Savings: 80C (₹1.5L) + NPS (₹50K) = ₹2L total deductions = ₹62K-₹78K tax saved!
4

Home Loan Tax Benefits

Claim up to ₹2 lakhs on home loan interest (Section 24) + ₹1.5L on principal (80C). Total deduction: ₹3.5 lakhs!

Only in Old Regime: New Regime doesn’t allow home loan interest deduction. Choose wisely!
5

Compare Regimes Annually

Your optimal tax regime changes with income and deductions. Use our calculator every year before filing ITR to choose the best option.

Rule of Thumb: New Regime better if deductions <₹1.5L. Old Regime better if deductions >₹2.5L.

Bonus: File ITR on Time!

File ITR before July 31 to avoid penalties (₹5,000-₹10,000) and claim full refunds. Use ITR-1 for salary income below ₹50L.

E-verification: Complete within 30 days using Aadhaar OTP, net banking, or bank account validation.

Why Choose CalcWise Tax Calculator?

The most comprehensive and user-friendly tax calculator for Indian taxpayers

Real-Time Calculation

Instant tax calculation as you type. No page reloads. See Old vs New regime comparison live.

📊

Visual Comparison

Interactive charts and cards show which regime saves you more money at a glance.

👴

Age-Based Slabs

Supports Below 60, Senior (60-80), and Super Senior (80+) citizens with different exemption limits.

📄

PDF Export

Download professional tax report PDF with all calculations. Share with CA or keep for records.

🎯

87A Rebate Auto-Applied

Automatically calculates Section 87A rebate making tax zero for eligible incomes up to ₹12L.

📱

Mobile Optimized

Works perfectly on smartphones. Calculate tax on-the-go without downloading any app.

Frequently Asked Questions

Everything you need to know about income tax calculation for FY 2025-26

Q. What is the difference between Old and New Tax Regime?

Old Regime: Allows deductions like Section 80C (₹1.5L), 80D (health insurance), HRA, home loan interest, but has higher tax rates starting at 5% for income above ₹2.5L.

New Regime: Offers lower tax rates with 7 slabs (0%-30%) but restricts most deductions. Only standard deduction of ₹75,000 is allowed.

💡 Choose Old if deductions >₹2-3L, New if minimal deductions.

Q. What are the tax slabs for FY 2025-26?

New Regime (Default):
• Up to ₹4L: 0% (No Tax)
• ₹4L-₹8L: 5%
• ₹8L-₹12L: 10%
• ₹12L-₹16L: 15%
• ₹16L-₹20L: 20%
• ₹20L-₹24L: 25%
• Above ₹24L: 30%

Old Regime:
• Up to ₹2.5L: 0%
• ₹2.5L-₹5L: 5%
• ₹5L-₹10L: 20%
• Above ₹10L: 30%

Plus 4% Health & Education Cess on total tax

Q. What is Section 87A tax rebate?

Section 87A provides full tax rebate making your tax liability zero if:

Old Regime: Taxable income ≤ ₹5,00,000 (rebate up to ₹12,500)

New Regime: Total income ≤ ₹12,00,000 (rebate up to ₹60,000)

📌 Example: If your income is ₹11.5L under New Regime, calculated tax is ₹57,500, but 87A rebate makes it ZERO!

Note: This is automatic – no separate claim needed in ITR.

Q. What is standard deduction in New Tax Regime?

For FY 2025-26, standard deduction of ₹75,000 is available under New Tax Regime for salaried individuals and pensioners.

How it works:
• Gross Salary: ₹10,00,000
• Less: Standard Deduction: ₹75,000
• Taxable Income: ₹9,25,000

✅ Automatic deduction – no documents required!

Old Regime had ₹50,000 standard deduction till FY 2022-23, now removed but other deductions allowed.

Q. Can I switch between tax regimes every year?

Yes! Salaried individuals can choose between Old and New regime every year while filing ITR.

When to decide:
• Before filing ITR (usually July-August)
• Or inform employer for correct TDS deduction

⚠️ Important: Once you select a regime for a year, you CANNOT claim deductions from the other regime for that year.

💡 Use our calculator to compare both options before choosing!

Q. What deductions are allowed in Old Tax Regime?

Major deductions available:

Section 80C (₹1.5L max): PPF, ELSS, EPF, NSC, LIC, Sukanya Samriddhi, Tuition fees, Home loan principal

Section 80D: Health insurance (₹25K self + ₹25K parents, ₹50K if parents are senior citizens)

Section 80CCD(1B): Additional ₹50K for NPS

Section 24(b): Home loan interest up to ₹2L

HRA: Actual exemption based on rent paid

LTA: Leave Travel Allowance (twice in 4 years)

Total potential deductions: ₹3-4 lakhs or more!

Q. Are there different tax slabs for senior citizens?

Yes! Only in Old Tax Regime:

Senior Citizens (60-80 years):
• Up to ₹3,00,000: 0% (No Tax)
• ₹3L-₹5L: 5%
• ₹5L-₹10L: 20%
• Above ₹10L: 30%

Super Senior Citizens (Above 80):
• Up to ₹5,00,000: 0% (No Tax)
• ₹5L-₹10L: 20%
• Above ₹10L: 30%

💡 New Regime has same slabs for all ages – no special benefit for seniors

Q. What is Health and Education Cess?

Health and Education Cess is 4% levied on the calculated income tax amount (not on income).

Calculation example:
• Income Tax: ₹1,00,000
• 4% Cess: ₹4,000
• Total Tax: ₹1,04,000

Applicable to: Both Old and New Tax Regimes

Calculated after: All rebates (like 87A) are applied

📌 Our calculator automatically includes this 4% cess in final tax amount

Q. Which regime is better for salary of ₹15 lakhs?

It depends on your deductions:

Scenario 1: Minimal deductions (₹0-1L)
• Old Regime Tax: ~₹2.1L
• New Regime Tax: ~₹1.5L
✓ New Regime better – saves ₹60K

Scenario 2: High deductions (₹3-4L)
• Old Regime Tax: ~₹1.2L
• New Regime Tax: ~₹1.5L
✓ Old Regime better – saves ₹30K

💡 Use our calculator with your exact deductions to find your best option!

Q. How accurate is this tax calculator?

Our calculator uses official Income Tax Act 1961 provisions updated for FY 2025-26 (AY 2026-27).

✅ What’s included:
• Latest tax slabs for both regimes
• Age-based exemptions (senior/super senior)
• Section 87A rebate (automatic)
• 4% Health & Education Cess
• Standard deduction (₹75K in New Regime)

⚠️ Limitations:
• Doesn’t include capital gains tax
• No TDS calculation
• Doesn’t cover agricultural income
• Assumes resident individual status

💼 For complex cases (business income, foreign income), consult a CA

Q. When should I file my Income Tax Return for FY 2025-26?

Important Dates for FY 2025-26 (AY 2026-27):

📅 July 31, 2026: Last date for individuals (salaried/self-employed)

📅 October 31, 2026: Last date for audit cases

📅 December 31, 2026: Belated return deadline

💰 Late Filing Penalty:
• If income >₹5L: ₹5,000 penalty
• If income ≤₹5L: ₹1,000 penalty
• After Dec 31: ₹10,000 penalty

✅ File early to avoid last-minute rush and ensure timely refund!

Q. What is the tax on bonus, overtime, and arrears?

All salary components including bonus, overtime, arrears, commissions are added to your gross salary and taxed according to regular tax slabs.

Example:
• Basic Salary: ₹8,00,000
• Bonus: ₹2,00,000
• Overtime: ₹50,000
Total Taxable Income: ₹10,50,000

Special Case – Arrears:
Salary arrears from previous years can be claimed under Section 89(1) for relief. Use Form 10E.

💡 Include ALL salary components in “Gross Annual Income” field

Still Have Questions?

Our tax calculator is designed to handle most common scenarios. For complex tax situations, personalized advice, or tax planning strategies, we recommend consulting a qualified Chartered Accountant.

Disclaimer: This calculator provides estimates based on FY 2025-26 tax slabs and provisions. Actual tax liability may vary based on specific circumstances. Please consult a Chartered Accountant for personalized advice.

Last Updated: October 20, 2025 | Data Source: Income Tax Act 1961 | Maintained by CalcWise.Finance