Indian Income Tax Calculator
For Financial Year 2025-26 (Assessment Year 2026-27)
Global Settings
FY 2025-26 (AY 2026-27) Updates:
- • New Regime: Default, Rebate up to ₹12,00,000 taxable income, Standard Deduction of ₹75,000.
- • Old Regime: Rebate up to ₹5,00,000 taxable income, Standard Deduction of ₹50,000.
- • Capital Gains: STCG (Equity) @ 20%, LTCG (Equity) @ 12.5% over ₹1.25L.
Your Annual Income
Standard Deduction will be applied automatically
30% standard deduction will be applied
Special Rate Incomes (Capital Gains, Lottery)
Your Annual Deductions
The New Regime has lower tax rates but fewer deductions. Only the following are allowed.
Important Information
- • This calculator uses tax rules for FY 2025-26 (AY 2026-27)
- • Calculations are for educational purposes only
- • Please consult a tax professional for accurate tax planning
- • Standard deductions are automatically applied based on your regime
- • Special income rates: LTCG Equity @ 12.5% (above ₹1.25L), STCG Equity @ 20%, Lottery @ 30%
Understanding the New vs. Old Tax Regime
The Income Tax Act of India largely provides two parallel regimes. The Old Tax Regime allows you to claim various exemptions (HRA, LTA) and deductions (like 80C, 80D), but comes with higher slab rates. The New Tax Regime offers lower, more concessional slab rates but requires you to forego most of the exemptions and deductions.
Which one should you choose?
There is no one-size-fits-all answer. If you have significant investments like Provident Fund, Life Insurance, Home Loan EMIs, and a high amount of Medical Insurance premiums, the Old Regime might result in lower tax outgoes. However, if your investments in these tax-saving instruments are minimal, the New Regime often proves to be simpler and financially beneficial.
What are Surcharges & Health/Education Cess?
- Surcharge: An additional tax on the tax itself, levied on high-income earners. The rate of surcharge increases as your income crosses certain thresholds (e.g., above ₹50 Lakhs).
- Health and Education Cess (HEC): A 4% cess is charged on the total of income tax and surcharge to fund health and educational initiatives by the government.
Frequently Asked Questions
Can I switch back and forth between regimes?
Salaried individuals (having no business/professional income) can switch between the old and new regime every year. However, if you have business/professional income, you are allowed to switch back to the old regime only once in your lifetime.
Do standard deductions apply in the New Tax Regime?
Yes, starting from FY 2023-24, a standard deduction of ₹50,000 is available under the New Tax Regime for salaried employees and pensioners. This has recently been updated for the coming years.