Income Tax Calculator India

It depends on your income and deductions. As a quick rule:

• Use the New Regime if your annual income is up to ₹12,00,000 — the 87A rebate makes your tax effectively zero.
• Use the New Regime if your total deductions are below ~₹2,00,000. The lower slabs and higher standard deduction usually win.
• Use the Old Regime if you have ₹2.5 lakh+ in combined 80C, 80D, HRA, and home loan interest deductions.

Always run your actual numbers through the calculator above — the break-even point shifts with income level.

Per Budget 2025 (effective FY 2025-26 onwards):

• Up to ₹4,00,000 — 0%
• ₹4,00,001 – ₹8,00,000 — 5%
• ₹8,00,001 – ₹12,00,000 — 10%
• ₹12,00,001 – ₹16,00,000 — 15%
• ₹16,00,001 – ₹20,00,000 — 20%
• ₹20,00,001 – ₹24,00,000 — 25%
• Above ₹24,00,000 — 30%

Plus ₹75,000 standard deduction for salaried, full Section 87A rebate up to ₹12,00,000 taxable income, and 4% Health and Education Cess.

Old regime slabs (unchanged for years), depending on age:

Below 60: 0% up to ₹2.5L, 5% from ₹2.5-5L, 20% from ₹5-10L, 30% above ₹10L.

60-80 (senior): 0% up to ₹3L, 5% from ₹3-5L, 20% from ₹5-10L, 30% above ₹10L.

80+ (super senior): 0% up to ₹5L, 20% from ₹5-10L, 30% above ₹10L.

Plus ₹50,000 standard deduction for salaried, ₹12,500 87A rebate if taxable income is up to ₹5,00,000, and 4% cess.

Section 87A gives a tax rebate to resident individuals.

Old Regime: rebate up to ₹12,500 if taxable income does not exceed ₹5,00,000.

New Regime (post-Budget 2025): the rebate makes tax effectively zero up to ₹12,00,000 taxable income, with marginal relief just above that threshold.

The New Regime allows very few deductions:

• Standard deduction of ₹75,000 for salaried.
• Employer NPS contribution under Section 80CCD(2), up to 14% of basic salary.
• Section 80JJAA (additional employee cost — for businesses).

Most popular deductions — 80C, 80D, HRA, home loan interest under Section 24, 80CCD(1B), 80E, 80G — are not available under the New Regime.

Surcharge is an additional tax on high-income earners, calculated as a percentage of the income tax.

Both regimes:

• Income above ₹50 lakh — 10% surcharge
• Above ₹1 crore — 15%
• Above ₹2 crore — 25%
• Above ₹5 crore — 37% (Old Regime); New Regime caps at 25%

Marginal relief applies so that crossing a threshold by a small amount doesn't dramatically increase total tax.

HRA exemption is the least of:

1. Actual HRA received from employer
2. Rent paid minus 10% of basic salary
3. 50% of basic salary (metro cities) or 40% (non-metro)

For example, basic ₹6,00,000, HRA ₹3,00,000, rent ₹2,40,000, in Mumbai (metro): 50% of basic = ₹3,00,000; rent - 10% basic = ₹1,80,000; actual HRA = ₹3,00,000. Least is ₹1,80,000 — that's the exempt portion.

Enter the calculated exempt amount in the HRA field above (HRA exemption is only available under the Old Regime).

Salaried individuals can switch every year. Business/profession owners can switch only once back to the Old Regime — after that, they're locked into the New Regime.

If your deduction situation changes year-to-year (e.g. home loan ends, or you start NPS contributions), re-run this calculator before filing.