Old vs New Tax Regime
Compare your tax liability under the old regime (with deductions) vs the new regime (lower rates, fewer deductions) as per Income Tax Act 2025. Includes 87A rebate and marginal relief up to ₹12 lakh.
Calculation Formula
- Old = Deductions allowed (80C, 80D, HRA)
- New = Standard deduction ₹75,000; rebate to ₹12L; marginal relief above
How to Use This Calculator
Enter gross annual income and total deductions claimed under old regime. The calculator shows which regime saves more tax.
This calculator is for informational and educational purposes only. Tax calculations are based on the Income Tax Act, 2025 (effective April 1, 2026) and may not reflect all individual circumstances. Tax slabs, rebate thresholds, and deduction limits are subject to change through government notifications. Always verify at incometax.gov.in and consult a qualified Chartered Accountant for personalized guidance.
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Frequently Asked Questions
Find answers to common questions about old vs new tax. Click on any question to expand the answer.
Under the Income Tax Act, 2025, the old tax regime allows you to claim various deductions and exemptions (like HRA, LTA, Section 80C, 80D). The new tax regime offers lower, concessional tax rates but requires you to forgo most of these deductions and exemptions.
It depends on your financial profile. If you make significant investments and claim deductions (e.g., home loan interest, insurance premiums), the old regime might be better. If you have fewer deductions, the lower rates of the new regime could be more beneficial. This calculator helps you make that comparison.
Yes, for Tax Year 2026-27 onwards under the Income Tax Act, 2025, the new tax regime is the default option for taxpayers. If you wish to opt for the old regime, you must explicitly do so when filing your income tax return.
Under the new regime of the Income Tax Act, 2025, you can still claim the standard deduction of ₹75,000 (for salaried individuals) and deductions for employer contributions to NPS under Section 80CCD(2). A tax rebate of ₹60,000 is available for taxable income below ₹12 lakh.
Under the Income Tax Act, 2025, the new regime slab rates for Tax Year 2026-27 are: 0-4L: Nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, Above 24L: 30%.
Salaried individuals without business income can choose between the old and new regimes each financial year. However, individuals with business or professional income have only one chance to switch back to the old regime after opting for the new one.
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