Income Tax Calculator FY 2025-26

New vs Old Regime comparison · AY 2026-27 · India · Instant results

New Regime saves you ₹28,600 per year Recommended
Best
New RegimeFY 2025-26
Total Tax₹0
Effective Rate0%
In-Hand / yr₹8,00,000
In-Hand / mo₹66,667
Rebate u/s 87A: ₹16,250 (income ≤ ₹12L)
Old RegimeWith deductions
Total Tax₹28,600
Effective Rate3.6%
In-Hand / yr₹7,71,400
In-Hand / mo₹64,283
Deductions applied: ₹2,25,000 · Taxable: ₹5,75,000

Tax vs Take-home (New Regime)

New vs Old — Side-by-Side

FY 2025-26 Tax Slab Reference

New Regime

Income RangeRate
Up to ₹4,00,000Nil
₹4L – ₹8L5%
₹8L – ₹12L10%
₹12L – ₹16L15%
₹16L – ₹20L20%
₹20L – ₹24L25%
Above ₹24L30%

+ 4% cess · Rebate u/s 87A: Nil tax if taxable ≤ ₹12L

Old Regime (Below 60)

Income RangeRate
Up to ₹2,50,000Nil
₹2.5L – ₹5L5%
₹5L – ₹10L20%
Above ₹10L30%

+ 4% cess · Rebate u/s 87A: Nil tax if taxable ≤ ₹5L

For general guidance only. Does not account for capital gains, business income, AMT, or all deduction limits. Consult a tax professional for filing.

What is Income Tax Calculator?

Income tax is a direct tax levied by the government on the income of individuals, businesses, and other entities. In India, income tax is administered by the Income Tax Department under the Income Tax Act, 1961. Individual taxpayers are taxed at progressive rates — higher slabs apply to higher income ranges — with different rate structures for the Old Tax Regime and the New Tax Regime introduced in FY 2020-21.

Calculating income tax accurately requires understanding taxable income (gross income minus exemptions and deductions), applicable tax slabs, surcharge (for high earners), Health and Education Cess (4% on income tax + surcharge), and various deductions under Sections 80C, 80D, 80E, HRA exemption, LTA, and standard deduction. The choice between the Old Regime (which allows deductions) and the New Regime (lower rates but fewer deductions) depends on individual circumstances.

Altairys's Income Tax Calculator covers both regimes for the current financial year. Enter your annual income, applicable deductions (80C: up to ₹1.5 lakh; 80D: medical insurance; HRA; standard deduction), and the calculator shows your taxable income, tax under each slab, surcharge, cess, and total tax liability under both regimes — so you can compare and choose the more beneficial option. It also shows the tax-saving potential and suggests optimal deductions.

How to Use Income Tax Calculator

  1. Enter your gross income

    Type your annual gross income (salary, business income, or other sources).

  2. Add deductions

    Enter Section 80C, 80D, HRA, and other eligible deductions.

  3. Compare both regimes

    See tax liability under both Old and New Tax Regimes side by side.

  4. Choose your regime

    Select the regime with lower tax liability and note your savings.

Key Benefits

Both tax regimes

Compare Old Regime (with deductions) vs New Regime (lower rates) instantly.

Slab breakdown

See exactly how much tax applies at each income slab.

Cess and surcharge

Automatically calculates Health & Education Cess (4%) and applicable surcharge.

Tax-saving tips

Shows how much you can save by maximising Section 80C and other deductions.

Frequently Asked Questions

The Old Regime allows deductions under 80C, 80D, HRA, LTA, and others, reducing taxable income but with higher base rates. The New Regime has lower tax rates but allows fewer deductions. Taxpayers should calculate both to choose the better option.

Section 80C allows deduction of up to ₹1.5 lakh for investments in PPF, ELSS mutual funds, life insurance premium, NSC, 5-year FD, home loan principal repayment, and children's tuition fees.

A 4% cess is levied on the income tax amount plus surcharge. It is mandatory and funds health and education schemes. It is not a deductible expense.

Under the New Regime, individuals with annual income up to ₹7 lakh pay zero tax (after rebate under Section 87A). Under the Old Regime, the basic exemption limit is ₹2.5 lakh (₹3 lakh for 60-80 year olds, ₹5 lakh for 80+).

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