Income Tax Calculator (FY 2025-26)
Income Tax Calculator
Annual Tax Projection for WB Govt Employees
Annual Tax Comparison
Choosing between the Old and New Tax Regimes can meaningfully change your take-home pay, especially after Budget 2025's revised slabs and standard deduction. This calculator compares both regimes side by side so you can pick the one that works in your favour for FY 2025-26 (AY 2026-27).
What Is Income Tax (FY 2025-26)?
India currently runs two parallel income tax systems: the Old Regime, which allows deductions like 80C, 80D, and HRA exemption but applies higher slab rates, and the New Regime, which offers lower slab rates but removes most deductions except a standard deduction.
Following Budget 2025, the standard deduction and tax slabs under the New Regime were revised further, making the comparison even more relevant for salaried employees deciding which regime to opt for this financial year.
How to Use the Income Tax Calculator (FY 2025-26)
- Gross Annual Salary: Enter your total gross salary for the financial year.
- Deductions (Old Regime): If comparing the Old Regime, enter your 80C, 80D, and home loan interest deductions.
- HRA Details: Enter HRA received and rent paid if you want HRA exemption factored into the Old Regime calculation.
- Calculate: Click calculate to see a side-by-side comparison of tax payable under both regimes.
How to Calculate Income Tax (FY 2025-26)
Taxable Income = Gross Salary − Standard Deduction − Eligible Deductions − HRA Exemption (Old Regime only)
Under the Old Regime, your taxable income is your gross salary minus the standard deduction, HRA exemption (if applicable), Section 80C and 80D deductions, and home loan interest under Section 24, with tax then computed using the older, higher slab rates.
Under the New Regime, most deductions are not available, but the standard deduction still applies and the slab rates themselves are lower, which is why employees with fewer eligible deductions often find the New Regime more favourable.
Benefits of the Income Tax Calculator (FY 2025-26)
- Regime comparison: Instantly see which regime results in lower tax for your specific income and deduction profile.
- Updated slabs: Reflects the latest standard deduction and slab changes from Budget 2025.
- Investment guidance: Understand how much more you'd need to invest under 80C or 80D to make the Old Regime worthwhile.
- Annual planning: Use the comparison early in the financial year to plan your tax-saving investments accordingly.
Your ideal tax regime can change from year to year depending on your deductions and income level, so it's worth re-running this comparison every financial year, particularly after Budget announcements that revise slabs or deduction limits.
Other Calculators:
Old vs New Tax Regime Comparator
Section 80C Deduction Planner
TDS on Salary Calculator
Form 16 / TDS Summary Generator
Frequently Asked Questions
What is the standard deduction for FY 2025-26?
The standard deduction applicable for FY 2025-26 has been revised under Budget 2025; this calculator uses the current notified figure for both regime calculations.
Can I switch between Old and New regimes every year?
Salaried employees without business income can choose their preferred regime every financial year when filing their return; those with business income face restrictions on switching back.
Which regime is better for someone with no investments?
The New Regime is generally more favourable for employees who don't claim significant 80C, 80D, or HRA deductions, due to its lower slab rates.
Is HRA exemption available under the New Regime?
No, HRA exemption, along with most other deductions, is not available under the New Tax Regime.
Do I need to submit investment proofs every year?
Yes, if opting for the Old Regime and claiming deductions like 80C or 80D, you typically need to submit investment proofs to your employer for accurate TDS deduction.
Does this calculator account for Section 87A rebate?
The calculator factors in applicable rebates under current rules for both regimes where eligible; always cross-check with the latest CBDT notification for your exact case.
Is professional tax deducted before or after this tax calculation?
Professional tax, where applicable in West Bengal, is deducted separately from salary and is typically allowed as a deduction before computing taxable income.
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