Income Tax Estimator
Compare Old vs New Regime Tax Liability for FY 2025-26.
* Note: Deductions are only applicable for the Old Regime.
New Regime Tax
₹ 81,900
RecommendedOld Regime Tax
₹ 117,000
Tax planning in India has become a game of choices. The Union Budget 2025 has cemented the New Tax Regime as the default option, aggressively pushing it with lower slab rates and higher rebates. However, the Old Tax Regime still exists for those who have heavy investments in tax-saving instruments.
The million-dollar question is: Which regime saves YOU more money? Our estimator helps you find the answer in seconds.
⚔️ The Great Debate: Old vs New Regime
New Regime (Default)
"Simplicity & Lower Rates"
- ✅ Lower tax slab rates
- ✅ No paperwork/proofs required
- ✅ Tax-free income up to ₹7 Lakhs (Rebate u/s 87A)
- ❌ No deductions (No HRA, 80C, 80D, LTA)
Old Regime
"For the High Savers"
- ✅ Keeps all deductions (HRA, Home Loan, 80C)
- ✅ Ideal for those with Home Loans
- ❌ Higher tax slab rates
- ❌ Complex compliance & proof submission
Standard Deduction Update (2025)
There is good news for salaried employees! The flat Standard Deduction of ₹75,000 is now available under BOTH regimes.
This means your taxable income is automatically reduced by ₹75,000 before any calculation begins, regardless of which regime you pick. This replaces the earlier limit of ₹50,000.
Who should choose the Old Regime?
Mathematically, you should stick to the Old Regime ONLY IF your total eligible deductions exceed roughly ₹3.75 Lakhs. This threshold is known as the "Breakeven Point".
You typically reach this amount if you claim:
- Section 80C: ₹1.5 Lakh (EPF, PPF, ELSS, LIC)
- Section 24(b): ₹2.0 Lakh (Home Loan Interest)
- Section 80D: ₹25,000 - ₹50,000 (Health Insurance)
- HRA: Significant House Rent Allowance
If your committed investments don't add up to this amount, the New Regime will almost certainly save you more tax.
Frequently Asked Questions
Is income up to 7 Lakhs tax-free?
Yes. Under the New Tax Regime, if your net taxable income is ≤ ₹7 Lakhs, you get a full rebate u/s 87A, making your tax liability zero. Note that if income crosses ₹7 Lakhs even by ₹1, the rebate vanishes.
Can I switch regimes every year?
Salaried individuals can switch between Old and New regimes every year based on what benefits them. However, individuals with Business or Professional income can only switch back to the Old Regime <strong>once</strong> in their lifetime.