Income Tax Calculator — FY 2025-26

Income Tax Calculator FY 2024-25 — New vs Old Regime

This calculator computes your exact income tax for FY 2024-25 (AY 2025-26) under both the new and old tax regimes. Enter your gross salary and deductions to instantly see which regime saves you more tax — and by how much.

New Tax Regime — Key Points (FY 2024-25)

• Standard deduction increased to ₹75,000 (from ₹50,000)
• Income up to ₹7.75 lakh is effectively tax-free (₹7L taxable + 87A rebate)
• No 80C, 80D, HRA deductions allowed
• Default regime from FY 2023-24 — you must opt out to use old regime

Old Tax Regime — Key Points

• Standard deduction: ₹50,000
• Section 80C deduction up to ₹1.5 lakh (PF, ELSS, PPF, LIC, home loan principal)
• Section 80D up to ₹25,000 (health insurance) + ₹25,000 for parents
• HRA exemption for rent-paying employees
• Better if total deductions exceed ₹3.75 lakh (approx)

Which regime should you choose?

A rough guide: if your 80C + 80D + HRA + other deductions total more than ₹3.75 lakh, the old regime will likely save more tax. Below that, the new regime is usually better. Use the calculator above for your exact numbers.

Frequently Asked Questions

What is the last date to choose the tax regime?

Salaried employees must inform their employer at the start of the financial year (April). If you do not inform, the employer defaults to the new regime. You can still change the regime when filing your ITR before July 31.

Is 12 lakh salary tax free in new regime?

FY 2025-26: Yes. Budget 2025 raised the Section 87A rebate to ₹60,000 for taxable income up to ₹12 lakh. After ₹75,000 standard deduction, a gross salary of ₹12.75 lakh gives taxable income of ₹12 lakh — which attracts ₹60,000 tax on the new slabs, fully covered by the ₹60,000 rebate. Final tax = ₹0.
FY 2024-25: No. At ₹12 lakh gross, taxable income is ₹11.25 lakh. Tax ≈ ₹1,23,750 + cess. Only incomes up to ₹7.75 lakh were zero-tax in FY 2024-25.

Can I switch between new and old regime every year?

Salaried individuals (without business income) can switch between regimes every year when filing their ITR. Those with business income can switch only once from old to new regime.

Is NPS deduction allowed in new regime?

Employer's contribution to NPS (Section 80CCD(2)) up to 10% of basic salary is allowed even in the new regime. Employee's own NPS contribution (80CCD(1B)) up to ₹50,000 is NOT allowed in the new regime.