India income tax calculator.
Enter a gross annual income. Compare New Regime versus Old Regime tax liability side-by-side, including deductions, 87A rebate, and 4% cess. FY 2025-26 slabs. No email wall.
Total income before deductions and tax.
Old regime: enter Section 80C deductions (max ₹1.5L), 80D health insurance, and the annual HRA exemption if applicable.
Annual tax comparison
New Regime total tax
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After the standard deduction, 87A rebate and 4% cess.
Old Regime total tax
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After 87A rebate and deductions claimed.
- Taxable income
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- Standard deduction
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- Slab-wise tax
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- 87A rebate
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- Tax before cess
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- 4% Health & Education Cess
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Assumes FY 2025-26 slabs. Surcharge above ₹50L taxable is not modelled here. Speak to sales for high-income offers.
How the regimes compare.
New Regime
Standard deduction ₹75K. Tax-free up to ₹12L taxable (87A rebate). Slabs 5-30%. No Section 80C deductions. Faster to compute, favours earners above ₹20L CTC with few investments.
Old Regime
Standard deduction ₹50K. Section 80C (max ₹1.5L), 80D, HRA exemption available. 87A rebate up to ₹5L taxable only. Slabs from ₹2.5L. Complex but can win for investors.
The 87A rebate
New regime: full tax waiver to ₹12L taxable. Old regime: ₹12,500 if taxable to ₹5L. This rebate alone often makes New regime unbeatable for earners up to ₹15L gross.
Worked example
On the default ₹24,00,000 annual gross, the new regime returns a total tax of ₹2,92,500 for FY 2025-26, including the 4% cess and the ₹75,000 standard deduction.
Income tax calculator, answered.
The New vs Old regime comparison every India hire needs.
Which regime is right for most India engineers?
New regime for most. The 87A rebate (full tax waiver up to ₹12L taxable income), higher standard deduction (₹75K), and gentler slabs win for earners above ₹20L CTC. Old regime wins only with heavy 80C and 80D investments. Toggle both above to compare your exact salary.
Why does Old regime show HRA as a deduction input?
Old regime allows HRA exemption if the employee receives HRA in the pay structure and can show rent receipts. New regime gives no HRA deduction, only the ₹75K standard deduction. If your hire is in Bangalore with ₹40L CTC and 20% HRA (₹8L/year), Old regime HRA exemption can swing the decision.
What is the 87A rebate?
Section 87A rebate: New regime caps tax at zero if taxable income is ₹12L or less (full rebate). Old regime rebate is ₹12,500 if taxable income is ₹5L or less. This rebate is the reason New regime crushes Old regime for incomes up to ₹12L taxable.
Are Section 80C deductions capped?
Yes. Section 80C, 80CCC, 80CCD(1) combined max is ₹1.5L per year. PF contribution (12% of basic) counts toward this limit. Voluntary investments in ELSS, PPF, NSC, life insurance need to be declared and verified by the employer.
When is this calculator the wrong answer?
When the employee has complex deductions (HRA without rent docs, rental income, capital gains, business income), self-employment income, or salary above ₹50L (surcharge bands and rate changes apply). At that point, run an actual payroll simulation, not a web form.
Longer reading: EOR services in India · India employment contracts and tax · Related tool: India salary calculator
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