Income Tax Calculator FY 2025-26 – Old vs New Regime
Compare your tax liabilities under the Old and New tax regimes for FY 2025-26 (AY 2026-27). See standard deductions and recommendations.
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Income Tax Slabs (FY 2025-26 / AY 2026-27)
Indian taxpayers must choose between the Old Regime (which allows deductions like Sec 80C, 80D, HRA, and home loans) and the New Regime (which offers lower tax slabs but eliminates almost all deductions). Under the Union Budget, the New Regime standard deduction stands at ₹75,000.
Under the New Regime, net taxable income up to ₹12,00,000 pays zero tax due to Section 87A rebate benefits, making it highly attractive for middle-income salaried professionals.
Frequently Asked Questions (FAQ)
1. Can I change my regime selection next year?
Salaried employees can switch between the Old and New regimes every financial year at the time of filing their ITR. Individuals with business income, however, get only a one-time option to switch back to the Old regime.
2. What is standard deduction?
It is a flat deduction of ₹75,000 (New Regime) or ₹50,000 (Old Regime) allowed to all salaried employees and pensioners to reduce taxable income, requiring no bill declarations.