Income Tax Comparison
Compare Old vs New Tax Regime for FY 2025-26 (AY 2026-27) & find your best deal.
Enter your total annual salary before any deductions
Deductions & Exemptions (Old Regime)
These help reduce your taxable income under the Old Tax Regime.
PPF, ELSS, LIC, EPF, School Fees, Principal on Home Loan, etc.
Exempt portion of House Rent Allowance. Leave 0 if you don't pay rent.
Health insurance premiums for self, spouse, children.
Health insurance premiums for parents.
Interest paid on home loan for self-occupied property (Max ₹2L).
Additional deduction for National Pension System (Max ₹50k).
Total PT deducted from your salary during the year.
Recommended Regime
New Tax Regime
Both regimes result in the same tax for you.
Old Regime
₹0
Effective Rate: 0.00%
New Regime
₹0
Effective Rate: 0.00%
Detailed Comparison
| Particulars | Old Regime | New Regime |
|---|---|---|
| Gross Salary | ₹0 | ₹0 |
| Standard Deduction | ₹0 | ₹0 |
| Other Deductions | -₹50,000 | -₹75,000 |
| Taxable Income | ₹0 | ₹0 |
| Base Tax | ₹0 | ₹0 |
| Rebate (87A) | ₹0 | ₹0 |
| Cess (4%) | ₹0 | ₹0 |
| Total Tax | ₹0 | ₹0 |
How to Use this Calculator & Guide
📝 What is Income Tax?
Income tax is a part of your earnings paid to the government to fund public services. It is calculated based on "slabs" — meaning the more you earn, the higher the tax rate applied to that specific portion of income.
⚖️ Why compare Old vs New?
The New Regime offers lower rates but no deductions. The Old Regime has higher rates but lets you reduce tax using investments (like 80C or Home Loan). This tool finds your "best deal" instantly.
🚀 How to fill this form?
- Enter your Gross Salary first.
- Fill in your investments (80C, 80D, etc.) for Old Regime calculation.
- Review the Recommendation Card to see which regime saves you more money.
Tax Knowledge Base
Guide to understanding tax terms
Old Tax Regime
The traditional system where you can use investments and expenses (like HRA, Home Loan) to lower your taxable income.
Real Example:
If you pay high rent or have a home loan, this regime might save you more money.
💡 Pro Tip: You must have proofs (receipts, statements) for all deductions you claim here.
New Tax Regime
The modern, default system with lower tax rates but almost no deductions (except Standard Deduction).
Real Example:
Great for those who don't want the hassle of managing investment proofs or don't have high rent/loans.
💡 Pro Tip: From FY 2025-26, it is tax-free up to ₹12 Lakh taxable income!
Section 80C
The most popular deduction. You can reduce up to ₹1.5 Lakh from your taxable income by investing in specific instruments.
Real Example:
PPF (Public Provident Fund), ELSS (Tax-saving mutual funds), LIC premiums, Children's school tuition fees, EPF contribution.
💡 Pro Tip: Even if you invest more than ₹1.5L, the maximum benefit is capped at ₹1.5L.
Section 80CCD (NPS)
Deductions for contributions to the National Pension System (NPS).
Real Example:
Under 80CCD(1B), you can claim an extra ₹50,000 deduction on top of the ₹1.5L limit of Section 80C.
💡 Pro Tip: This is a great way to build a retirement corpus while saving extra tax.
HRA (House Rent Allowance)
If you live in a rented house and receive HRA as part of your salary, a portion of it can be exempt from tax.
Real Example:
If your rent is ₹20,000 and your basic salary is ₹50,000, you can calculate the exempt portion based on your city (metro vs non-metro).
💡 Pro Tip: You need rent receipts and your landlord's PAN (if rent > ₹1L/year) to claim this.
Section 80D
Deduction for premiums paid for Health Insurance for yourself, family, and parents.
Real Example:
₹25,000 for self/family and an additional ₹50,000 if your parents are senior citizens.
💡 Pro Tip: Preventive health checkups up to ₹5,000 are also included within these limits.
Professional Tax (PT)
A small tax levied by State Governments on salaried individuals.
Real Example:
Usually ₹200-₹300 is deducted from your monthly salary (max ₹2,500 per year).
💡 Pro Tip: The full amount of PT paid during the year is allowed as a deduction from your gross salary.
Section 24(b) - Home Loan Interest
Interest paid on a home loan for a self-occupied property is deductible.
Real Example:
If your annual home loan interest is ₹2.5L, you can deduct up to ₹2L under this section.
💡 Pro Tip: The principal amount of the home loan EMI is covered under Section 80C.
Standard Deduction
A flat deduction given to all salaried individuals, regardless of actual expenses.
Real Example:
In FY 2025-26, it is ₹75,000 for New Regime and ₹50,000 for Old Regime.
💡 Pro Tip: You don't need any bills or proofs to claim this; it's applied automatically.
Section 87A Rebate
A special tax relief that makes your tax ₹0 if your taxable income is below a certain limit.
Real Example:
In the New Regime, if your taxable income is up to ₹12L, your tax becomes zero. In the Old Regime, the limit is ₹5L.
💡 Pro Tip: This is why many people with salaries up to ₹12.75L (after standard deduction) pay absolutely no tax in the New Regime.
Health & Education Cess (4%)
An additional tax of 4% calculated on your total tax amount (not on your income).
Real Example:
If your calculated tax is ₹10,000, you will pay an additional ₹400 as Cess.
💡 Pro Tip: Cess is used by the government to fund national education and health initiatives.