Income Tax Calculator India FY 2025-26 — New & Old Regime
Calculate income tax for FY 2025-26 under new and old tax regime. Worked examples for ₹12L, ₹18L, ₹25L salary. Includes surcharge, cess, and rebate 87A.
FY 2025-26 brought meaningful changes: the new regime's zero-tax threshold effectively covers incomes up to ₹12.75 lakh (after standard deduction), and the slabs were restructured to make the new regime attractive across a wider range. Still, anyone with a home loan and substantial 80C investments may find the old regime worth the paperwork.
The CalcHub Income Tax Calculator India computes your tax under both regimes instantly.
New Tax Regime Slabs — FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Old Tax Regime Slabs — FY 2025-26
| Income Slab | Tax Rate |
|---|---|
| Up to ₹2,50,000 | 0% |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Worked Examples
₹12 Lakh Gross Salary
New Regime:- Gross: ₹12,00,000
- Minus standard deduction: ₹75,000
- Taxable income: ₹11,25,000
- Tax: ₹0 (below ₹12L rebate threshold)
- Tax payable: ₹0
- Gross: ₹12,00,000
- Minus deductions: ₹2,75,000
- Taxable income: ₹9,25,000
- Tax: 5% on ₹2.5L + 20% on ₹4.25L = ₹12,500 + ₹85,000 = ₹97,500
- Plus 4% cess: ₹3,900
- Tax payable: ₹1,01,400
₹18 Lakh Gross Salary
New Regime:- Taxable income: ₹18L – ₹75K standard = ₹17,25,000
- Tax: 5% × ₹4L + 10% × ₹4L + 15% × ₹4L + 20% × ₹1,25,000 = ₹20,000 + ₹40,000 + ₹60,000 + ₹25,000 = ₹1,45,000
- Plus 4% cess: ₹5,800
- Tax payable: ₹1,50,800
- Taxable income: ₹18L – ₹4,25,000 = ₹13,75,000
- Tax: 5% × ₹2.5L + 20% × ₹5L + 30% × ₹3,75,000 = ₹12,500 + ₹1,00,000 + ₹1,12,500 = ₹2,25,000
- Plus 4% cess: ₹9,000
- Tax payable: ₹2,34,000
₹25 Lakh Gross Salary
New Regime:- Taxable income: ₹25L – ₹75K = ₹24,25,000
- Tax: 5% × ₹4L + 10% × ₹4L + 15% × ₹4L + 20% × ₹4L + 25% × ₹4L + 30% × ₹25,000
- Plus 4% cess: ₹12,300
- Tax payable: ₹3,19,800
- Taxable income: ₹25L – ₹5,75,000 = ₹19,25,000
- Tax: 5% × ₹2.5L + 20% × ₹5L + 30% × ₹9,25,000 = ₹12,500 + ₹1,00,000 + ₹2,77,500 = ₹3,90,000
- Plus 4% cess: ₹15,600
- Tax payable: ₹4,05,600
Surcharge on High Incomes
For incomes above ₹50 lakh, a surcharge applies:
| Income | Surcharge Rate |
|---|---|
| ₹50L – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| ₹2 crore – ₹5 crore | 25% |
| Above ₹5 crore | 37% (old) / 25% (new regime cap) |
Why do I owe tax when my employer already deducted TDS?
TDS is an estimate. If you have additional income (bank interest, rent, capital gains, freelance earnings) not reflected in your employer's calculation, or if you chose wrong regime, you owe the difference as self-assessment tax. Always reconcile Form 26AS with your actual income.
How do I report freelance income alongside salary?
Freelance/consulting income falls under "Business and Profession" or "Other Sources" depending on the nature. If you have professional income, you can claim legitimate business expenses. This also affects regime choice — those with business income have limited flexibility to switch regimes.
Is the ₹12 lakh zero-tax applicable to capital gains too?
No. The Section 87A rebate for the new regime applies only to regular income (salary, other sources, business income). Capital gains (STCG/LTCG) are taxed separately at their specific rates even if your total income is below ₹12 lakh. This was clarified by the courts.
Related Calculators
- Old vs New Tax Regime Calculator — detailed regime comparison
- TDS Calculator — monthly TDS estimation
- HRA Calculator — HRA exemption in old regime
- Capital Gains Tax Calculator — investment gains tax