Are you also confused about Old Tax Regime vs New Tax Regime? So to end this confusion, we have designed an Income tax calculator so that you can easily do comparative calculations of the old tax regime and the new tax regime. In the old tax regime, you can avail many exemptions and deductions like PPF, NPS, LIC and HRA, but the tax rates are high. Whereas in the new tax regime (Budget 2020), there are not many exemptions, but the tax rates are low, which makes filing taxes easier. For the financial year 2025-26, you can pay zero tax on income up to ₹ 12.75 lakh under the new tax regime. Use our simple, fast and accurate income tax calculator to choose the best tax regime for your salary and savings.
Income Tax Calculator
Calculate your income tax for FY 2025-26 and compare Old vs New Tax Regimes.
Your Tax Breakdown
*Note: This is an estimate based on FY 2024-25 tax slabs. Consult a tax professional for precise details.
Old Tax Regime Slabs for FY 2025-26
The Old Regime allows for deductions like 80C, 80D, and HRA but has higher tax rates. Under this regime, the income tax slabs for different age groups are as follows:
| Slab | Tax Rate | ||
|---|---|---|---|
| Individual (-60Y) | Senior Citizen (60Y - 80Y) | Super Sr. Citizen (80+) | |
| ₹0 to ₹2,50,000 | NIL | NIL | NIL |
| ₹2,50,001 to ₹5,00,000 | 5% | 5% | NIL |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
In the old tax regime, HRA exemption was availed on the basis of section 10(13A) of the Income Tax Act. The exempt amount is the lowest of the three amounts:
- Actual H.R.A Paid.
- 50% of basic salary (for metro city), or 40% of basic salary (for non-metro city).
- Rent paid minus 10% of basic salary.
New Tax Regime Income Tax Slabs for FY 2025-26
The New Regime has lower tax rates but no exemptions. Only U/S 80CCD(2)-Employers contribution towards NPS can be take in deduction coloumn.
| Slab | Tax Rate |
|---|---|
| ₹0 to ₹3,00,000 | NIL |
| ₹3,00,001 to ₹7,00,000 | 5% |
| ₹7,00,001 to ₹10,00,000 | 10% |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
FAQ on Old vs New Tax Regime
1. What is the difference between old and new tax regime?
The old tax regime offers deductions like 80C, HRA, Home Loan etc. but the tax rates are higher. The new tax regime offers lower tax rates but the deductions are not.
2. Which tax regime is better?
If you have deductions like 80C, HRA, then the old regime can save more tax. If you do not have deductions, the new regime is simpler and better for you.
3. Should employees inform employers about the tax regime?
Yes, otherwise the employer can deduct TDS as per the new regime by default.
4. Can I claim HRA in the new tax regime?
No, no exemptions are allowed in the new regime.
5. Is standard deduction allowed in the new tax regime?
Yes, up to Rs 50,000 in the old tax regime and up to Rs 75,000 in the new tax regime.
6. Are 80C and 80D deductions allowed in the new regime?
No, except 80CCD(2), 80CCH and 80JJAA, all other deductions can be availed from the old regime.
7. Is home loan interest deduction allowed in new tax regime?
No.
8. What are benefits for senior citizens in both regimes?
In the old regime, there is a ₹3 lakh exemption (senior) and ₹5 lakh (super senior). While in the new regime, income up to ₹7 lakh is tax-free for all.
9. What is Section 87A rebate in both regimes?
In the old regime, a ₹12,500 exemption is payable for income up to ₹5 lakh. In the new regime, a ₹25,000 exemption is payable for income up to ₹7 lakh.
10. Is Form 10-IEA required to choose old regime?
Yes, if there is business income, salaried individuals have to select it from the ITR form.
