Free online tool
Income Tax Calculator
Work out your income tax for FY 2025-26 in one place: enter salary, business and capital-gains income, compare the new and old regimes side by side, and find out whether you should file ITR-1, ITR-2, ITR-3 or ITR-4.
Quick answer
Quick answer
For a ₹15,00,000 salary in FY 2025-26, the new regime wins: ₹97,500 tax vs ₹1,71,600 under the old regime — a saving of ₹74,100 a year. Salary up to ₹12.75 lakh gross pays zero tax under the new regime (Section 87A rebate). Use the calculator below with your own salary to see which regime wins for you.
Open the interactive Income Tax Calculator
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Worked example — Rs 15,00,000 salary
Old regime with Rs 2,75,000 of deductions (80C Rs 1.5 lakh + 80D Rs 25,000 + HRA Rs 1 lakh).
| Gross salary | Rs 15,00,000 |
|---|---|
| New regime tax | Rs 97,500 |
| Old regime tax | Rs 1,71,600 |
| New regime saves | Rs 74,100 a year |
New vs old regime slabs — FY 2025-26
| Taxable income | New regime | Old regime (< 60 yrs) |
|---|---|---|
| Up to Rs 4,00,000 | Nil | Nil to Rs 2.5L, 5% after |
| Rs 4,00,001 – Rs 8,00,000 | 5% | 5% to Rs 5L, 20% after |
| Rs 8,00,001 – Rs 12,00,000 | 10% | 20% |
| Rs 12,00,001 – Rs 16,00,000 | 15% | 20% |
| Rs 16,00,001 – Rs 20,00,000 | 20% | 30% |
| Rs 20,00,001 – Rs 24,00,000 | 25% | 30% |
| Above Rs 24,00,000 | 30% | 30% |
Tax-saving deductions — old regime limits
| Section | What it covers | Maximum deduction |
|---|---|---|
| 80C | EPF, PPF, ELSS, LIC, NSC, 5-year FD, tuition fees, home-loan principal | Rs 1,50,000 |
| 80D | Health insurance — self, spouse, dependent children | Rs 25,000 (Rs 50,000 if senior citizen) |
| 80D (parents) | Health insurance — parents | Rs 25,000 (Rs 50,000 if senior-citizen parents) |
| 80CCD(1B) | NPS contribution, over and above 80C | Rs 50,000 |
| 24(b) | Home-loan interest, self-occupied house | Rs 2,00,000 |
| 80TTA / 80TTB | Savings-account interest / senior-citizen interest | Rs 10,000 / Rs 50,000 |
| HRA | House rent allowance exemption (Rule 2A) | No fixed cap — least of 3 tests |
About this tool
About the Income Tax Calculator
Work out your income tax for FY 2025-26 in one place: enter salary, business and capital-gains income, compare the new and old regimes side by side, and find out whether you should file ITR-1, ITR-2, ITR-3 or ITR-4.
Detailed guide
How to get useful results from Income Tax Calculator
New tax regime slabs for FY 2025-26
The new tax regime under Section 115BAC is the default in India since FY 2024-25: if you file without choosing, you are taxed under it. Budget 2025 rewrote its slabs for FY 2025-26, and Budget 2026 left them unchanged, so the same slabs apply for FY 2025-26 and FY 2026-27.
Taxable income up to Rs 4,00,000 is nil, Rs 4,00,001 to Rs 8,00,000 is taxed at 5%, Rs 8,00,001 to Rs 12,00,000 at 10%, Rs 12,00,001 to Rs 16,00,000 at 15%, Rs 16,00,001 to Rs 20,00,000 at 20%, Rs 20,00,001 to Rs 24,00,000 at 25%, and anything above Rs 24,00,000 at 30%. The rates apply to everyone — unlike the old regime, there is no separate senior-citizen slab in the new regime.
Salaried taxpayers and pensioners get a standard deduction of Rs 75,000 under the new regime. Combined with the Section 87A rebate, a salaried person earning up to Rs 12.75 lakh gross pays zero tax — Rs 75,000 standard deduction brings taxable income to Rs 12 lakh, and the Rs 60,000 rebate wipes the tax out.
Old tax regime slabs — and the senior-citizen advantage
The old regime keeps the age-based basic exemption: nil up to Rs 2,50,000 for those below 60, up to Rs 3,00,000 for senior citizens aged 60 to 80, and up to Rs 5,00,000 for super senior citizens above 80. Above the exemption, the rates are 5% up to Rs 5,00,000, 20% from Rs 5,00,001 to Rs 10,00,000, and 30% above Rs 10,00,000.
The old regime gives a standard deduction of Rs 50,000 to salaried taxpayers and pensioners, and a Section 87A rebate of up to Rs 12,500, which makes taxable income up to Rs 5 lakh tax-free. Its real strength is Chapter VI-A: 80C, 80D, HRA, home-loan interest and NPS deductions that the new regime does not allow.
The old regime only wins when those deductions stack up. At a Rs 20,00,000 salary, the old regime needs total deductions of about Rs 7,08,000 to match the new regime — a stack of 80C, 80D, HRA and home-loan interest that most people do not reach. The calculator above shows your exact breakeven figure.
Section 87A rebate and marginal relief — the Rs 12 lakh zero-tax rule
Section 87A is the reason so many people pay no tax at all. Under the new regime, a resident individual with taxable income up to Rs 12,00,000 gets a rebate of up to Rs 60,000 — and since the slab tax on Rs 12 lakh is exactly Rs 60,000, the tax becomes nil. Under the old regime the rebate is up to Rs 12,500 for taxable income up to Rs 5,00,000.
Just above the limit, marginal relief protects you: your tax cannot exceed the amount by which your income crosses the threshold. At Rs 12,25,000 of taxable income under the new regime, the slab tax is Rs 63,750, but marginal relief caps it at Rs 25,000 — the Rs 25,000 by which you crossed Rs 12 lakh. The relief phases out near Rs 12.7 lakh of taxable income.
One limit matters: the 87A rebate does not apply to income taxed at special rates. Short-term capital gains under Section 111A and long-term capital gains under Section 112A are taxed even when your other income is below the rebate limit — the calculator keeps that tax separate, so a Rs 2,00,000 short-term gain still costs Rs 40,000 in tax.
New vs old regime — which one wins for you?
There is no universal winner; it depends on your deductions. The new regime wins for most salaried people with modest deductions, because its wider nil-tax territory and lower slab rates beat the old regime's deductions unless those deductions are large.
As a rule of thumb, the old regime starts to win when your total deductions (80C + 80D + HRA + home-loan interest + NPS + others) cross roughly Rs 3.5 lakh at a Rs 15 lakh salary, and roughly Rs 7 lakh at a Rs 20 lakh salary. Metro renters with a large HRA exemption plus a home loan are the classic old-regime winners.
Do not guess — run both numbers. Enter your income and your actual deductions in the tool above; it computes both regimes slab by slab and tells you the winner, the saving, and the exact deduction total at which the old regime would overtake the new one.
Save tax legally — 80C, 80D, NPS, HRA and home-loan interest
Section 80C allows up to Rs 1,50,000 a year for EPF, PPF, ELSS mutual funds, life-insurance premiums, NSC, 5-year fixed deposits, children's tuition fees and home-loan principal. It is the single biggest lever for most salaried taxpayers, and it is available only under the old regime.
Section 80D covers health-insurance premiums: Rs 25,000 for yourself, spouse and dependent children, rising to Rs 50,000 if you or your spouse is a senior citizen, plus a separate Rs 25,000 for parents (Rs 50,000 for senior-citizen parents) — a maximum of Rs 1,00,000 in total. A preventive health check-up of up to Rs 5,000 counts inside these limits, not on top of them.
NPS contributions get an extra Rs 50,000 under Section 80CCD(1B), over and above the 80C limit. Home-loan interest on a self-occupied house is deductible up to Rs 2,00,000 under Section 24(b), and HRA exemption follows the Rule 2A formula — the least of actual HRA received, 50% of basic + DA in a metro city (40% elsewhere), and rent paid minus 10% of basic. One exception to the old-regime-only rule: the employer's NPS contribution under Section 80CCD(2) is allowed in both regimes.
Capital gains tax — STCG 20%, LTCG 12.5%, and the Rs 1.25 lakh exemption
Budget 2024 rewrote capital-gains tax from 23 July 2024, and Budget 2025 and Budget 2026 left the new rates untouched. For listed equity shares and equity mutual funds, gains on assets held 12 months or less are short-term and taxed at a flat 20% under Section 111A. Gains on assets held longer are long-term and taxed at 12.5% under Section 112A — but only on the amount above Rs 1.25 lakh of such gains in a financial year.
For property, gold and unlisted shares the holding period is 24 months. Long-term gains on those assets are taxed at 12.5% without indexation, and the Rs 1.25 lakh exemption does not apply to them — it is for listed equity only. Short-term gains on non-equity assets are taxed at your slab rate, up to 30%.
Traders, take note: futures and options (F&O) trading is business income, not capital gains, so it is taxed at slab rates and needs ITR-3. Intraday equity trading is speculative business income. The calculator taxes your STCG and LTCG at the special rates and adds them on top of your slab tax, exactly as the return does.
Which ITR form should you file? ITR-1 to ITR-4
ITR-1 (Sahaj) is for resident individuals with total income up to Rs 50 lakh from salary or pension, up to two house properties, other sources such as interest, and long-term capital gains under Section 112A up to Rs 1.25 lakh. It does not allow business income, short-term capital gains, directorships, unlisted shares or foreign assets.
ITR-2 is for individuals and HUFs with no business income but a more complex profile: any capital gains, more than two house properties, foreign income or assets, or total income above Rs 50 lakh. ITR-3 is for business or professional income computed on a regular books-of-accounts basis, including partners in a firm. ITR-4 (Sugam) is for presumptive income under Sections 44AD, 44ADA or 44AE with total income up to Rs 50 lakh.
Filing is mandatory when your total income before Chapter VI-A deductions crosses the basic exemption limit — Rs 4,00,000 under the new regime, or Rs 2,50,000 / Rs 3,00,000 / Rs 5,00,000 by age under the old regime. It is also mandatory below that limit if any of these apply: current-account deposits above Rs 1 crore, foreign-travel spend above Rs 2 lakh, electricity spend above Rs 1 lakh, business turnover above Rs 60 lakh, professional receipts above Rs 10 lakh, aggregate TDS/TCS of Rs 25,000 or more (Rs 50,000 for senior citizens), or savings-account deposits of Rs 50 lakh or more.
Quick guide
How to use this tool
- 01Enter your annual salary, business profit, other income and any capital gains.
- 02Pick your age group and business type — the tool applies the right slabs and deductions.
- 03Add your old-regime deductions (80C, 80D, HRA, home-loan interest, NPS).
- 04Compare the new and old regime side by side and read your ITR form and filing verdict.
Capabilities
Features and supported formats
- Salary, business, trading and capital-gains income in one calculation.
- Live new vs old regime comparison with a breakeven deduction figure.
- Section 87A rebate with marginal relief, surcharge (capped at 25% in the new regime) and 4% cess.
- ITR-1 / ITR-2 / ITR-3 / ITR-4 finder with reasons, plus the ITR filing check.
Supported formats
Inputs: annual income by source (Rs), age group, business type, old-regime deductions. Output: tax under both regimes, monthly take-home, effective rate, ITR form and filing verdict.
Answers
Frequently asked questions
How much salary is tax-free in FY 2025-26?
Under the new regime, a salaried person earning up to Rs 12.75 lakh pays zero tax: the Rs 75,000 standard deduction brings taxable income to Rs 12 lakh, and the Section 87A rebate of Rs 60,000 wipes the tax out. Under the old regime, taxable income up to Rs 5 lakh is tax-free through the Rs 12,500 rebate.
What are the new tax regime slabs for FY 2025-26?
Nil up to Rs 4 lakh, 5% from Rs 4 lakh to Rs 8 lakh, 10% from Rs 8 lakh to Rs 12 lakh, 15% from Rs 12 lakh to Rs 16 lakh, 20% from Rs 16 lakh to Rs 20 lakh, 25% from Rs 20 lakh to Rs 24 lakh, and 30% above Rs 24 lakh. The same slabs apply to all ages, and a 4% health and education cess applies on the final tax.
Which regime is better — new or old?
It depends on your deductions. The new regime usually wins when total deductions are modest; the old regime wins when 80C, 80D, HRA and home-loan interest stack up — roughly above Rs 7 lakh of deductions at a Rs 20 lakh salary. Enter your figures in the tool above and it tells you the winner and the exact breakeven deduction total.
What is the Section 87A rebate?
Section 87A cancels your tax when taxable income is up to Rs 12 lakh under the new regime (rebate up to Rs 60,000) or up to Rs 5 lakh under the old regime (rebate up to Rs 12,500). Just above the limit, marginal relief caps your tax at the income above the threshold. The rebate does not apply to short-term or long-term capital gains taxed at special rates.
How much can I save with 80C?
Section 80C allows a deduction of up to Rs 1,50,000 a year for EPF, PPF, ELSS mutual funds, life-insurance premiums, NSC, 5-year fixed deposits, children's tuition fees and home-loan principal. It is available only under the old regime. At the 30% slab, a full Rs 1.5 lakh claim saves about Rs 46,800 in tax including cess.
What is the 80D deduction limit?
Rs 25,000 for health-insurance premiums for yourself, spouse and dependent children, rising to Rs 50,000 if you or your spouse is a senior citizen, plus a separate Rs 25,000 for parents (Rs 50,000 for senior-citizen parents) — a maximum of Rs 1,00,000 in total. A preventive health check-up of up to Rs 5,000 counts inside these limits. 80D is available only under the old regime.
How are capital gains taxed in India?
Listed equity held 12 months or less: short-term gains at a flat 20% (Section 111A). Held longer: long-term gains at 12.5% on the amount above Rs 1.25 lakh a year (Section 112A). Property and gold need a 24-month holding for long-term treatment at 12.5% without indexation. F&O trading is business income, taxed at slab rates — not capital gains.
Which ITR form should I file — ITR-1, 2, 3 or 4?
ITR-1 (Sahaj) for salary income up to Rs 50 lakh with no business and no capital gains beyond the small 112A allowance. ITR-2 for capital gains, income above Rs 50 lakh, or foreign assets — with no business income. ITR-3 for business or professional income on a regular basis. ITR-4 (Sugam) for presumptive income under 44AD/44ADA/44AE up to Rs 50 lakh. The tool above picks the form from your inputs.
When is filing ITR mandatory?
When total income before Chapter VI-A deductions crosses the basic exemption — Rs 4,00,000 under the new regime, or Rs 2,50,000 / Rs 3,00,000 / Rs 5,00,000 by age under the old regime. Filing is also mandatory below that limit for high-value triggers: current-account deposits above Rs 1 crore, foreign-travel spend above Rs 2 lakh, electricity spend above Rs 1 lakh, or aggregate TDS/TCS of Rs 25,000 or more.
What is the surcharge and cess on income tax?
Surcharge applies when total income crosses Rs 50 lakh: 10% above Rs 50 lakh, 15% above Rs 1 crore, 25% above Rs 2 crore, and 37% above Rs 5 crore under the old regime — the new regime caps it at 25%. Surcharge on capital gains is capped at 15%. On top of tax plus surcharge, a 4% health and education cess applies to everyone.
Does the new regime allow any deductions?
Almost none. The new regime allows the Rs 75,000 standard deduction for salaried taxpayers and pensioners, plus the employer's NPS contribution under Section 80CCD(2). It does not allow 80C, 80D, HRA, home-loan interest, 80TTA or 80TTB. That trade-off — lower rates for no deductions — is the whole point of the new regime.
Is this calculator's result my final tax?
No — it is a planning estimate. It covers slab tax, the 87A rebate with marginal relief, capital-gains tax, surcharge and 4% cess, but it does not include surcharge marginal relief, advance-tax interest, or loss set-off. Verify your figures on incometax.gov.in and consult a Chartered Accountant before filing.