Old regime
₹1,87,200
Taxable income₹12,25,000
Slab tax₹1,80,000
87A rebate− ₹0
Surcharge₹0
Health & education cess₹7,200
Applies to: FY 2025-26 (AY 2026-27) · Last reviewed: 2026-08-04 · Reviewed by CA Harun Raaj, ICAI Membership No. 238303 · dual-cited ITA 1961 + ITA 2025
Income tax calculator
Old vs new tax regime calculator
Compare your FY 2025-26 tax under both regimes, including standard deduction, Chapter VI-A deductions, employer NPS, surcharge and 4% cess.
Income and profile
Old-regime deductions
Other old-regime items
Calculate HRA exemption →VERIFY-CA: the self-occupied Section 24(b) cap is applied as specified for this calculator; confirm current facts before filing.
New regime
₹0
Taxable income₹12,00,000
Slab tax₹60,000
87A rebate− ₹60,000
Surcharge₹0
Health & education cess₹0
New regime wins by ₹1,87,200 on these inputs.
Break-even deduction amount
Old regime wins if your total old-regime deductions exceed ₹7,25,000. Current old-regime deductions entered: ₹0; employer NPS is excluded from this comparison because it is allowed in both regimes.
Tax comparison
Old regime₹1,87,200
New regime₹0
Employer declaration: based on these inputs, declare the new regime to your employer for TDS estimation. The final regime choice remains subject to your return-filing facts and applicable rules.
Visible formula
Taxable income = gross salary − regime standard deduction − permitted deductions. Slab tax is then reduced by Section 87A rebate where eligible, increased by applicable surcharge, and increased by 4% health and education cess.
Old: ₹12,75,000 − ₹50,000 SD − ₹0 deductions = ₹12,25,000 taxable income; slab ₹1,80,000 − 87A ₹0 + surcharge ₹0 + cess ₹7,200 = ₹1,87,200
New: ₹12,75,000 − ₹75,000 SD − ₹0 deductions = ₹12,00,000 taxable income; slab ₹60,000 − 87A ₹60,000 + surcharge ₹0 + cess ₹0 = ₹0
Printable decision path
- IF employer NPS is contributed, THEN deduct it under both regimes.
- IF old-regime deductions exceed ₹7,25,000, THEN the old regime is expected to be lower-tax on these inputs.
- IF deductions are below that level, THEN compare the cards and confirm the choice with your employer/CA.
HR
Reviewed by Harun Raaj, CA — ICAI Membership No. 238303 · Firm Reg. 19027S · Updated July 2026
Frequently Asked Questions
What is the standard deduction difference between the regimes?+
1. The configured FY 2025-26 standard deduction is ₹75,000 under the new regime and ₹50,000 under the old regime. The calculator applies each amount before computing taxable income.
What are the Section 87A rebate ceilings?+
2. Under the configured rules, the old-regime ceiling is ₹5,00,000 with maximum rebate of ₹12,500. The new-regime ceiling is ₹12,00,000 with maximum rebate of ₹60,000. Section 87A is applied before surcharge and cess.
How does marginal relief work under the new regime?+
3. Just above the new-regime Section 87A ceiling, marginal relief limits tax so that it does not exceed income above the ceiling. The calculator applies that configured rule and shows the rebate separately.
Can HRA exemption be claimed under the new regime?+
4. No. HRA exemption under Section 10(13A) is modelled only in the old regime. Enter the exemption amount from the HRA calculator; the new-regime calculation does not deduct it.
Is employer NPS under Section 80CCD(2) allowed in both regimes?+
5. Yes. The configured regime rules allow employer NPS under Section 80CCD(2) in both regimes, so the calculator deducts the entered contribution on both sides.
Can a salaried taxpayer switch regimes?+
6. Salaried taxpayers can generally choose the regime for return filing, subject to the applicable declaration and filing rules. Taxpayers with business or professional income have additional switching conditions. Confirm the current position with a CA.
How is surcharge treated in the comparison?+
7. The calculator applies the configured surcharge tiers to tax after rebate. It caps the highest surcharge rate at 25% for the new regime and then applies 4% health and education cess.
Statutory basis (last verified 4 August 2026)
- Section 115BAC, Income Tax Act, 1961 — new regime slabs, standard deduction, Chapter VI-A restrictions and surcharge cap.
- Normal provisions — old regime slabs and age-based basic exemption.
- Section 87A — rebate and configured marginal-relief treatment.
- Section 80C, Section 80D, Sections 80CCD(1B) and 80CCD(2), and Sections 80TTA/80TTB — old-regime deductions.
- Section 24(b) — self-occupied home-loan interest input, capped in this calculator as specified; verify current property conditions.
- Section 10(13A) read with Rule 2A — HRA exemption, accepted here as a direct old-regime input.
- Health and education cess — 4% of income tax plus surcharge, from the FY 2025-26 tax configuration.
This is an indicative computation. Confirm salary components, deduction eligibility, surcharge facts and filing position with a qualified Chartered Accountant before filing.